Colorado sales tax for salons

Are haircuts and salon services taxable in Colorado?

No. Colorado's sales tax generally does not apply to services, and the only services the state names as taxable are telephone and telegraph service and commercial gas and electric service, so haircuts, nail services and skin care carry no state sales tax. Below: each kind of service, the products you sell, the rate and the permit a salon needs, each answered from the Colorado Department of Revenue's own publications, rules or statutes, read on October 25, 2026.

Haircuts
Not taxable
Nails
Not taxable

Administered by Colorado Department of Revenue.The agency's page The state's own words

Services

Which salon services are taxable in Colorado?

No. Colorado's sales tax generally does not apply to services, and the only services the state names as taxable are telephone and telegraph service and commercial gas and electric service, so haircuts, nail services and skin care carry no state sales tax.

Hair services
Not taxable
Nail services
Not taxable
Skin care and waxing
Not taxable

Hair services: haircuts, color, styling, perms and shaves. Nail services: manicures, pedicures and enhancements. Skin care: facials, waxing and other hair removal, and makeup.

Products

Do salons charge sales tax on products in Colorado?

Yes. Products a salon sells to clients are tangible personal property, which Colorado taxes at retail, so the salon must collect sales tax on them. The state rate is 2.9% plus local tax.

The rate

What is the sales tax rate in Colorado?

Statewide tax
State Sales Tax
State rate
2.9%
Local sales taxes
Yes, added by cities, counties or districts

The rate a client pays depends on the salon's address: look it up with the Colorado Department of Revenue.

The permit

Does a salon need a sales tax permit in Colorado?

Colorado sales tax license. A salon that sells products at retail must get a Colorado sales tax license from the Department of Revenue before its first sale, paying a $16 license fee plus a $50 deposit that is refunded later; home-rule cities need their own license.

Registration
Colorado sales tax license
State fee
$16

Register with the Colorado Department of Revenue

Good to know

What else Colorado says about salons and sales tax

  • A salon that uses shampoo, color or wax up in services is treated as the consumer of those supplies, so it pays sales tax when it buys them and does not charge tax on the services.
  • If a bundled charge combines a taxable product with a service, the whole price may be taxable unless certain conditions are met, so a salon should separate product sales from service charges.
  • A service business that also sells products regularly to customers is a retailer for those sales and must hold a sales tax license and collect tax on them.

Sources

What Colorado's official pages say

Each answer above, in the words of the Colorado Department of Revenue's own publications, rules or statutes, read on October 25, 2026. This is not tax advice: rules and rates change, so confirm with the Colorado Department of Revenue or an accountant.

Hair services
“Sales of services are generally not subject to Colorado sales tax. However, sales of the following services are specifically taxable under Colorado law:”
tax.colorado.gov
Products you sell
“Tangible personal property subject to sales tax includes all goods, wares, merchandise, products, and commodities”
tax.colorado.gov
The tax and its rate
“Colorado state sales tax is imposed at a rate of 2.9%.”
tax.colorado.gov
“Any sale made in Colorado may also be subject to state-administered local sales taxes.”
tax.colorado.gov
The permit
“The Colorado sales tax license (in other parts of the country, may be called a reseller's license, a vendor's license or a resale certificate) is for state and state-administered sales and use taxes.”
tax.colorado.gov
“Retailers must remit a license fee of $16, prorated depending on the date of issuance, and a deposit of $50 at the time of application.”
tax.colorado.gov
The agency
“File and pay state-collected Sales Tax”
tax.colorado.gov
Also good to know
“Anyone engaged in the business of rendering services to customers is generally considered the consumer, and not the retailer, of any tangible personal property that they use incidentally in rendering the service.”
tax.colorado.gov
Also good to know
“in the case of a mixed transaction that involves a bundled sale of both tangible personal property and service (whether or not such service is specifically taxed), the entire purchase price may be taxable unless certain conditions exist.”
tax.colorado.gov
Also good to know
“If, in addition to rendering services, the service enterprise regularly sells tangible personal property to consumers, then the service enterprise is a retailer with respect to such sales and must comply with the licensing, collection, and filing requirements applicable to retailers.”
tax.colorado.gov

Questions

Colorado salon sales tax, answered

Are haircuts taxable in Colorado?
No. On the Colorado Department of Revenue's official pages, Colorado's State Sales Tax does not apply to haircuts, color, styling, perms and shaves. Products you sell to clients are taxed separately.
Do nail salons charge sales tax in Colorado?
No. On the Colorado Department of Revenue's official pages, Colorado's State Sales Tax does not apply to manicures, pedicures and nail enhancements. Products you sell to clients are taxed separately.
Are facials and waxing taxable in Colorado?
No. On the Colorado Department of Revenue's official pages, Colorado's State Sales Tax does not apply to facials, waxing and other hair removal, and makeup. Products you sell to clients are taxed separately.
Do salons charge sales tax on products in Colorado?
Yes. Products a salon sells to clients are tangible personal property, which Colorado taxes at retail, so the salon must collect sales tax on them. The state rate is 2.9% plus local tax.
Does a salon need a sales tax permit in Colorado?
Colorado sales tax license. A salon that sells products at retail must get a Colorado sales tax license from the Department of Revenue before its first sale, paying a $16 license fee plus a $50 deposit that is refunded later; home-rule cities need their own license.
What is the sales tax rate in Colorado?
The statewide rate of Colorado's State Sales Tax is 2.9%, and cities, counties or districts add their own, so the rate a client pays depends on the salon's address. Check the rate for your address with the Colorado Department of Revenue.

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Are Haircuts Taxable in Colorado? Salon Sales Tax Rules | SalonAI