Doing Hair at Home? Your Home Can Lower Your Taxes.
Yes, you can. If you do hair in your home, part of your home costs can count as a business cost. That can make your tax bill smaller.
Run your own numbers: free tax after write-offs calculator, 2026 rates.
More stylists are moving out of salons and suites. Some set up a chair at home. It can save you money each month. It can also save you money at tax time, if you do it the right way.
This post shows you how. It is for hairstylists and barbers who work for themselves.
The one big rule: the space is only for work
The IRS has one rule that matters most. The space has to be used for your business, and only for your business. You also have to use it often, not once in a while.
This means a room or a clear part of a room. It is where you do hair. Nothing else happens there.
This counts:
- A spare room that is now your salon. It has your chair, your sink and your tools. No one sleeps or plays there.
- A garage you turned into a salon. You do not park the car in it.
This does not count:
- A chair in your kitchen. Your family eats there too.
- A guest room that has your chair in it. Guests still sleep there sometimes.
- Your couch, where you do braids while you watch TV.
If the space is used for home stuff too, you cannot count it. That is the rule most stylists miss.
Two ways to count it
There are two ways to figure out how much you can count. You can pick the one that saves you more. You can switch from year to year.
The easy way. Measure your salon space. Multiply the square feet by $5. The most you can count is 300 square feet, which is $1,500.
The longer way. Find what part of your home is your salon. Then count that part of your home bills. You fill out a form called 8829 for this.
Let’s try both
Say your salon room is 10 feet by 12 feet. That is 120 square feet. Your whole home is 1,000 square feet. So your salon is 12% of your home.
| The easy way | The longer way | |
|---|---|---|
| How you figure it | 120 square feet × $5 | 12% of rent, power, gas, water and renters insurance |
| Home costs for the year | Not needed | $26,640 (rent $24,000, bills $2,400, insurance $240) |
| What you can count | $600 | About $3,197 |
In this example, the longer way counts about 5 times more. It takes more work, but it can be worth it. Keep your bills so you can prove the numbers.
Other salon costs you can count
Some costs are only for your salon. You can count all of these, not just part. This is true no matter which way you pick above.
- Your salon chair, dryer and shampoo bowl
- Shears, clippers, irons and other tools
- Products you use on clients
- Capes and towels
- Paint or repairs for the salon room only
- Your booking app
- Your license fees
Big things, like a chair or a new sink, may need to be counted a little each year. Keep every receipt. A photo of it on your phone is fine.
Two things to watch out for
- You cannot count more than your salon made. With the longer way, your home costs cannot be bigger than what your salon earned after costs. If they are, the extra moves to next year. It is not lost.
- If you own your home, there is a catch when you sell. With the longer way, owners can count part of the home’s value a little each year. That lowers your taxes now. But when you sell the home, you may have to pay some of that tax back.
If you rent, you do not have to worry about this second one. If you own, the easy way skips it. Think about how long you plan to stay before you pick.
Check the rules before you open
Taxes are only one part. Your state and your city also have rules about doing hair at home. Some places say yes. Some say no. Some want a separate door or a special license.
Before you start, check with your state board for hair and barbering. In California, that is the Board of Barbering and Cosmetology. Also check with your city, and your landlord if you rent. Estheticians have the same homework; see what it takes to work from home as an esthetician.
Let Toozi keep track for you
Toozi helps people who work for themselves with their taxes, all by text. Text a photo of a receipt or a bill. Toozi saves it. Tell it your salon room is 120 square feet once, and it puts the home office on your return. It tells you what you may owe, and it can file your taxes for you. Text Toozi at (844) 482-4881 to start. The first 14 days are free, and you do not need a card.
Questions people ask
Can a barber write off a home barbershop?
Yes. The same rules work for barbers. The space has to be used only for the business, and used often.
Can I count my whole power bill?
No. Only the part that matches your salon space. With the easy way ($5 a square foot), you do not count bills at all.
I have a suite but see some clients at home too. Does my home space count?
It can. You need to see clients there often, and use the space only for work.
Do I need to see clients every day?
No. But you need to use it often, like every week. Once in a while is not enough.
What proof should I keep?
Take photos of your salon space. Write down how big it is. Keep your rent, bills and receipts for at least 3 years.
The Toozi team
Toozi isn’t your CPA. This isn’t formal tax advice. It’s the plain-English version. Rates, brackets and limits change every year. Check current IRS guidance or talk to a pro about your situation.