Indiana sales tax for salons

Are haircuts and salon services taxable in Indiana?

No. Indiana's Department of Revenue says services provided by barbers and beauticians are not subject to sales tax, and that services generally are not taxable retail transactions. Below: each kind of service, the products you sell, the rate and the permit a salon needs, each answered from the Indiana Department of Revenue's own publications, rules or statutes, read on October 25, 2026.

Haircuts
Not taxable
Nails
Not taxable

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

Services

Which salon services are taxable in Indiana?

No. Indiana's Department of Revenue says services provided by barbers and beauticians are not subject to sales tax, and that services generally are not taxable retail transactions.

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 Indiana?

Yes. A salon that buys products to resell must register as a retail merchant and collect and remit sales tax on all product sales to clients. The state rate is 7%.

The rate

What is the sales tax rate in Indiana?

Statewide tax
Sales Tax
State rate
7%
Local sales taxes
Not stated

The permit

Does a salon need a sales tax permit in Indiana?

Registered Retail Merchant Certificate. Register to collect sales tax through INBiz at inbiz.in.gov, or file Form BT-1, and pay the $25 nonrefundable fee before making retail sales; a separate certificate is needed for each business location.

Registration
Registered Retail Merchant Certificate
State fee
$25

Register with the Indiana Department of Revenue

Good to know

What else Indiana says about salons and sales tax

  • A salon pays sales tax when it buys supplies it uses up in hair services, such as shampoo, hair dye and foils.
  • Products bought to resell to clients are not taxed when bought, if purchased for resale.
  • Furnishings, office equipment and utilities a salon buys for its operation are taxed when purchased.

Sources

What Indiana's official pages say

Each answer above, in the words of the Indiana 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 Indiana Department of Revenue or an accountant.

Hair services
“Services provided by barbers and beauticians are not subject to Indiana sales tax.”
in.gov
Nail services
“Generally, transactions involving services are not taxable retail transactions.”
secure.in.gov
Products you sell
“A barber and beautician who purchases products for the purpose of resale must register with the Department as a retail merchant and collect and remit tax on all product sales.”
in.gov
The tax and its rate
“As a general matter, the sales tax rate imposed on all retail transactions in Indiana is 7%.”
in.gov
The permit
“will issue the person a Registered Retail Merchant Certificate (RRMC).”
in.gov
“You can register to collect sales tax and obtain a Registered Retail Merchant Certificate (RRMC)”
in.gov
“($25 Nonrefundable Registration Fee for Retail Merchant Certificate)”
forms.in.gov
The agency
“Indiana Department of Revenue: Sales Tax”
in.gov
Also good to know
“A barber or beautician is liable for Indiana sales tax on the purchase of all supplies and equipment used in the course of performing hair services.”
in.gov
Also good to know
“Sales tax is not due on the original purchase of these products if purchased for the purpose of resale.”
in.gov
Also good to know
“The purchase of furnishing, office equipment, and utilities used by a barber or beautician in the operation of a barber shop or salon is subject to Indiana sales tax.”
in.gov

Questions

Indiana salon sales tax, answered

Are haircuts taxable in Indiana?
No. On the Indiana Department of Revenue's official pages, Indiana's 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 Indiana?
No. On the Indiana Department of Revenue's official pages, Indiana's 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 Indiana?
No. On the Indiana Department of Revenue's official pages, Indiana's 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 Indiana?
Yes. A salon that buys products to resell must register as a retail merchant and collect and remit sales tax on all product sales to clients. The state rate is 7%.
Does a salon need a sales tax permit in Indiana?
Registered Retail Merchant Certificate. Register to collect sales tax through INBiz at inbiz.in.gov, or file Form BT-1, and pay the $25 nonrefundable fee before making retail sales; a separate certificate is needed for each business location.
What is the sales tax rate in Indiana?
The statewide rate of Indiana's Sales Tax is 7%. Check the rate for your address with the Indiana Department of Revenue.

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