Moving From Hourly to Commission as a Stylist: Will I Make Less?
“I’m terrified I’m going to make no money at all.” If your salon is moving you from hourly to commission, that fear makes sense. Here’s the honest answer: you make more on commission once your weekly service sales pass your hourly pay divided by your commission rate. Below that line, you make less. Here’s how to find your line.
Run your own numbers: free 1099 vs w-2 calculator, 2026 rates.
Find your break-even number
Take what you earn hourly in a week. Divide it by your commission rate. That’s the service sales you need each week just to stay even.
Example: $18 an hour, 35 hours a week, is $630 a week.
| Commission rate | Weekly sales to match $630 | Per hour in the chair (35 hrs) |
|---|---|---|
| 40% | $1,575 | $45 |
| 45% | $1,400 | $40 |
| 50% | $1,260 | $36 |
Look at your last month of tickets. If you already bring in more than that line, commission is a raise. If you’re well under it, ask for time (see below) before you switch.
Why color-heavy weeks can hurt
On commission, what matters is dollars per hour in the chair, not dollars per client. A long color service that books 3 hours for $150 earns you less per hour than two quick cuts in the same time. And many salons take a product or back-bar charge off color tickets before they figure your cut. Ask your salon:
- Is there a product fee on color, and how much?
- Is commission figured before or after that fee?
- Do retail sales pay a separate commission?
- Do I keep 100% of tips? (You should.)
Ask for one of these before you switch
- “Whichever is higher.” Many salons pay hourly or commission, whichever is more, each pay period. It’s the safest deal for you.
- A ramp. Stay hourly for 60 to 90 days while you build your book, then switch.
- A floor. As an employee, you must make at least minimum wage for every hour worked, even on commission. Your salon has to top you up if a slow week falls below it. Many states set a higher minimum; your state labor office has the rules.
Taxes: commission doesn’t change them (on a W-2)
If you’re still on a W-2, commission is just pay. Taxes come out of every check like before. Nothing to set aside.
But if the switch comes with a 1099, look closely. As one stylist put it, “1099 and commission shouldn’t be in the same sentence.” If the salon sets your schedule, your prices and your services, you’re likely an employee, whatever the form says. On a 1099 you’d pay both halves of Social Security and Medicare and lose your minimum-wage floor. Read W-2 vs. 1099: how to tell if you’re misclassified, and compare the two with the 1099 vs W-2 calculator.
Thinking past commission?
The same break-even idea works for booth rent and suites: what you’d need to bring in each week to beat your current take-home. See leaving commission for a salon suite and the booth renter take-home calculator.
Know your real number every week
Text Toozi your tickets and tips at the end of the day. It keeps a running weekly total, so you can see where you stand against your hourly line, and if you go independent later, it keeps your books and taxes too. Toozi for hairstylists.
Questions people ask
Is commission better than hourly for hairstylists?
Only once your weekly service sales pass your weekly hourly pay divided by your commission rate. At $18 an hour for 35 hours ($630 a week) and 45% commission, you need $1,400 a week in services to stay even.
Can a salon pay commission below minimum wage?
Not to an employee. Commissioned employees must still make at least minimum wage for every hour worked, so the salon has to make up the difference in a slow week.
Do taxes change when I switch to commission?
Not if you stay on a W-2. Commission is just pay, and taxes come out of each check. If the switch comes with a 1099, you'd pay both halves of Social Security and Medicare yourself.
The Toozi team
Toozi isn’t your CPA or your lawyer. This isn’t formal tax or legal advice. Pay rules differ by state. Check with your state labor department or a pro about your situation.