Hair Salon and Barber Resale Certificate Guide: Buy Products for Retail Tax-Free
If you own a hair salon, barbershop, or beauty supply store, your business straddles two different tax worlds. You provide services (haircuts, color, styling) and you sell products (shampoo, conditioner, styling tools). A resale certificate covers the products you buy to resell. It does not cover the supplies you consume while performing services.
That distinction is worth real money. A salon spending $2,000 per month on retail inventory saves $1,680 per year in a state with 7% sales tax. But use the certificate on the wrong purchases, and you are setting yourself up for an audit.
Hair Salon Supplies
The Service vs. Resale Split
This is the core concept every salon and barbershop owner must understand.
Services (haircuts, coloring, perms, blowouts, shaves) are treated differently from state to state. Most states do not charge sales tax on personal services, though some do. The products you use up while performing those services (color, developer, perm solution, disposable capes) are consumed by you, the service provider. You are the end user. Your resale certificate does not apply to those purchases.
Retail sales (the shampoo bottle a client buys off your shelf, the flat iron you sell at the register) are standard resale transactions. You buy them tax-free with your certificate and collect sales tax when the client purchases them.
Apply for Your Resale Certificate
What You Can Buy Tax-Free
These are products you purchase with the intent to resell to customers.
Retail Shelf Products (Tax-Exempt)
- Shampoo and conditioner (salon-grade bottles for retail)
- Styling products (mousse, gel, hairspray, pomade, wax)
- Hair treatments (deep conditioners, hair masks, oils)
- Brushes and combs sold to clients
- Flat irons, curling irons, and blow dryers sold to clients
- Hair accessories (clips, pins, headbands, scrunchies) for retail
- Beard care products (oils, balms, grooming kits)
- Gift sets and holiday bundles assembled for retail
- Gift cards (not taxable at purchase; tax applies at redemption)
Other Resale Items
- Retail packaging (bags, tissue paper, gift boxes for retail purchases)
- Display samples in some states (check your state's rules on demo/sample products)
What You CANNOT Buy Tax-Free
Items you use to perform services, even if they end up on a client's head, are your business expenses. You pay tax on these.
| Item | Why It Is Taxable |
|---|---|
| Hair color and developer used in services | Consumed by you during the service |
| Perm solution and neutralizer | Consumed during the service |
| Foils and highlighting caps | Consumed during the service |
| Disposable capes, neck strips, gloves | Single-use business supplies |
| Salon chairs, mirrors, stations | Business equipment |
| Washing machines and dryers (for towels) | Business equipment |
| Towels and robes used in the salon | Business use, not resold |
| Cleaning and sanitizing supplies | Business operations |
| Appointment software and POS systems | Business tools |
| Business cards and marketing materials | Promotional items |
The Product Overlap Problem
Here is where it gets tricky. You buy a case of 12 bottles of a professional shampoo. Six go on the retail shelf. Six go to your backbar for use during wash-and-cut services. Only the six retail bottles qualify for the resale exemption. The six you use in services are taxable.
Most suppliers sell the same product for both uses. You need to track what goes where. The simplest approach: buy your retail inventory and your service supplies on separate invoices, or at minimum, keep a log of how each purchase is allocated.
State-Specific Rules for Salons
Texas
Texas does not tax most personal services, including haircuts and styling. Retail product sales are taxable. You use your resale certificate to buy retail products tax-free and collect 6.25% state tax (plus up to 2% local) when you sell them. Color, developer, and other supplies used during services are taxable purchases for you. See the full Texas guide.
California
California does not tax services like haircuts. Retail product sales are taxable. California requires a seller's permit for retail sales. Professional products used in services are taxable to the salon. One California-specific detail: if you give a client a "complimentary" product as part of a service, that product is considered consumed by you, not resold. More details in the California guide.
New York
New York taxes many personal services, including barbering and hairstyling, at the state rate. This means both your services and your retail sales may be taxable. Your resale certificate still applies to products purchased for resale. Check the New York guide for current rates.
Florida
Florida does not tax most personal services. Retail product sales are taxable. Salon owners should be aware of Florida's local surtaxes, which vary by county and can add 0.5% to 1.5% to the base 6% state rate.
Georgia
Georgia does not tax haircuts and personal care services. Retail product sales are taxable at 4% state plus local rates. Products consumed during services are taxable to the salon.
Beauty Supply Retailers
If you operate a beauty supply store (retail-only, no salon services), your business is simpler from a tax perspective. You are a retailer. Everything on your shelves is purchased for resale, and your certificate covers all of it.
Beauty supply stores typically buy from distributors like Sally Beauty (wholesale division), CosmoProf, State Beauty Supply, and direct from brands. All of these accept resale certificates for wholesale accounts.
Wholesale Account Requirements
Most professional beauty distributors require:
- A valid resale certificate or seller's permit
- A business license
- A cosmetology license (for access to professional-only products)
- A minimum opening order (varies by distributor)
How to Handle Booth Renters and Commission Stylists
Many salon owners lease stations to independent stylists. This creates a tax question: who collects sales tax on retail products?
If the booth renter sells their own products: The booth renter needs their own resale certificate and sales tax registration. They are operating an independent business.
If the salon sells products and shares commission: The salon collects and remits sales tax. The salon's resale certificate covers the purchase.
Get this arrangement documented clearly. During audits, the state will want to know who is responsible for collecting and remitting tax on retail sales.
Real Savings for Salon Businesses
| Business Type | Monthly Retail Purchases | Annual Tax Savings (7%) |
|---|---|---|
| Solo stylist with small retail | $500 | $420 |
| Small salon (3-5 chairs) | $2,000 | $1,680 |
| Large salon | $5,000 | $4,200 |
| Beauty supply store | $15,000 | $12,600 |
For a beauty supply store, $12,600 per year in tax savings is substantial. Even a small salon with a modest retail section saves enough to cover a month's product costs.
Common Mistakes Salons Make
Using the Certificate on Service Supplies
Color, developer, perm solution, foils: these are service supplies, not resale items. Using your resale certificate to buy them tax-free is a misuse that will be caught in an audit. The auditor will look at your color purchases, compare them to your retail color sales, and flag the difference.
Not Separating Retail From Service Inventory
If you buy 50 units of a product and sell 20 retail while using 30 in services, only 20 qualify for the exemption. Keep records that show the split. Some POS systems like Square, Vagaro, and Boulevard can track this automatically.
Forgetting to Collect Sales Tax on Retail Sales
Your certificate exempts your purchases, not your clients' purchases. When a client buys a bottle of shampoo, you must charge sales tax (unless the client is in a state with no sales tax on those items).
Giving Away Products Without Tracking
Promotional samples, holiday gifts for clients, and "free with service" products are not resale items. If you give away a product, you owe use tax on it. Track promotional giveaways separately.
How to Get Started
- Apply for your resale certificate. Use your state's tax authority website or our application service.
- Open wholesale accounts. Provide your certificate to distributors like CosmoProf, Sally Beauty (pro division), and any direct brand accounts.
- Set up inventory tracking. Separate your retail inventory from your service supplies in your POS system and your bookkeeping.
- Register to collect sales tax. If you sell retail products, you must be registered to collect and remit sales tax in your state.
- Train your staff. Everyone working the register should understand what is taxable and what is not.
Apply for Your Resale Certificate Today