Income from renting chairs or booths in your salon is taxable under the Service and Other Activities business and occupation (B&O) tax classification, and you do not have to collect sales tax. It does not matter whether the rental charge is a flat fee or a percentage of sales.

References

WAC 458-20-118 Sale or rental of real estate, license to use real estate
Rental vs. License to Use Real Estate

Income from day spa services is generally taxable under the Service and Other Activities business and occupation (B&O) tax classification. However, some services, such as steam rooms or Turkish baths are subject to Retailing B&O tax, and you must collect retail sales tax.

When non-taxable and taxable services are sold as a non-itemized package, you must collect sales tax on the entire package. For example, when a package consists of steam room and massage, the entire charge is subject to retail sales tax. Charges for retail services or non-itemized packages containing retail services are taxable under the Retailing B&O tax classification.

When services are separately stated on an invoice, you will only collect retail sales tax on those services specifically defined as retail sales. Separately stated charges for nontaxable services are taxable under the Service and Other Activities B&O tax classification.

Below are examples of non-taxable and taxable services provided by day spas. These lists are not exclusive.

Spa services not subject to sales tax (non-taxable)

• Exfoliation
• Facials
•  Float pods
• Massage
• Nail care
• Nutrition
• Sauna (Traditional and Infrared)
• Whirlpool/Jacuzzi
• Wraps

Spa services subject to sales tax (taxable)

• Steam room
• Turkish bath

References

RCW 82.04.050 Sale at retail, retail sale
RCW 82.04.290 Tax on service and other activities
WAC 458-20-224 Service and other business activities

Income from providing eyelash services is taxable under the Service and Other Activities business and occupation (B&O) tax classification and you do not have to collect sales tax.

Examples of these services include:

• Eyelash extensions (this includes charges for both the extensions and labor to attach them).
• Lash lifts.
• Lash tinting.

References

RCW 82.04.290 Tax on service and other activities
WAC 458-20-224 Service and other business activities

Income from providing facials and skin care treatments is taxable under the Service and Other Activities business and occupation (B&O) tax classification, and you do not have to collect sales tax. Examples of these services include:

• Chemical peels.
• Dermaplaning.
• Exfoliation.
• Extractions.
• Microdermabrasion.
• Radio frequency beauty rejuvenation services.

References

RCW 82.04.290 Tax on service and other activities
WAC 458-20-224 Service and other business activities

Income from providing hair care services is taxable under the Service and Other Activities business and occupation B&O tax classification, and you do not have to collect sales tax. Examples of these services include:

• Hair cutting, trimming, and shaving.
• Shampooing, conditioning, and styling.
• Hair extensions, including charges for both the extensions and labor to attach them.
• Applying chemicals to hair to color, bleach, curl, or straighten it.
• Mustache and beard trimming, shaving, and designing.
• Waxing, sugaring, threading, tweezing and application of depilatories to remove hair.

References

RCW 82.04.290 Tax on service and other activities
WAC 458-20-224 Service and other business activities

Income from applying temporary makeup and teaching classes on makeup application is taxable under the Service and Other Activities business and occupation (B&O) tax classification, and you do not have to collect sales tax.

References

RCW 82.04.290 Tax on service and other activities
WAC 458-20-224 Service and other business activities

Income from medical spa services is taxable under the Service and Other Activities business and occupation (B&O) tax classification, and you do not have to collect sales tax. Examples of these services include:

• Botox & dermal fillers.
• Platelet Rich Plasma (PRP).
• Microneedling.
• Ultrasonic body sculpting.
• Laser treatments.
• Chemical peels.

References

RCW 82.04.290 Tax on service and other activities
RCW 82.08.0281 Exemptions-Sales of prescription drugs
WAC 458-20-224 Service and other business activities

Permanent makeup and microblading are forms of tattoo services.

Income from applying permanent makeup and microblading services is taxable under the Retailing business and occupation (B&O) tax classification and you must collect sales tax.

References

RCW 82.04.050 Sale at retail, retail sale

Income from nail care services is taxable under the Service and Other Activities business and occupation (B&O) tax classification, and you do not have to collect sales tax. Examples of these services include:

• Application or removal of acrylic nails.
• Manicures.
• Nail art design.
• Paraffin wax treatment.
• Pedicures.

References

RCW 82.04.290 Tax on service and other activities
WAC 458-20-224 Service and other business activities

Personal property tax is due on most property used in conducting business. Personal property includes all assets and supplies used by the business. It does not include inventory held for sale.

Examples of items that would be subject to personal property tax include chairs, mirrors, washing sinks, hair dryers, and styling tools.

You do not pay personal property tax on the excise tax return. This tax is administered by your county assessor. Please see our Personal Property Tax Brochure for more information.

Supplies

Generally, you must pay sales or use tax on any supplies you use in providing beauty and wellness services. Examples of supplies include shampoo, conditioner, lotions, nail polish, gloves, and foil.

You must also pay retail sales tax on purchases of business assets and other items that are reusable. Examples of these items include:

• Furniture.
• Computers.
• Hair styling appliances such as hair dryers and clippers.
• Hair styling tools such as combs and scissors.
• Supplies such as pens, paper, toilet paper, and tissues.

If your vendor does not collect sales tax, you must report use tax on the full value of the items, including shipping or delivery charges.

Purchases for resale

You may use a reseller permit to purchase items that are for resale rather than for use in providing your services. This includes ink that is applied to customers receiving microblading and permanent makeup services.

If you pay sales tax on items you resell, you may claim a Taxable Amount for Tax Paid at Source deduction on your excise tax return when you report the sale of the item. This deduction is claimed under the retail sales tax classification only. You must retain documentation for any deduction claimed.

Neurotoxins and derma fillers

If you are licensed to prescribe drugs, you may use a Sales Tax Exemption Certificate for Health Care Providers to purchase neurotoxins and derma fillers without paying sales tax.

References

WAC 458-20-102 Reseller permits
WAC 458-20-178 Use tax and the use of tangible personal property

Income from sales of products to your customers is generally taxable under the Retailing business and occupation (B&O) tax classification, and you must collect sales tax.

The sales tax rate is based on the location where your customer receives the goods. Usually, that is the location of your salon. You can find the appropriate sales tax rate by using our Tax Rate Lookup tool.

If you sell products to other businesses who will resell them and the buyer provides a copy of their valid reseller permit, the sales are taxable under the Wholesaling B&O tax classification. You do not have to collect sales tax on wholesale sales. You must keep copies of all reseller permits provided by your customers.

Sales of hair care products, skin care products, nail care products, and cosmetics are also subject to Litter Tax. Examples of items subject to Litter Tax include shampoo, hair styling products, face creams and lotions, nail polish, and cosmetics. You will report he Litter Tax on your excise tax return.

References

RCW 82.04.050 Sale at retail, retail sale
WAC 458-20-102 Reseller permits
WAC 458-20-243 Litter tax

There are specific licensing requirements in Washington for those who work in the beauty industry. Regardless of whether you plan to operate as a business or as an employee, you must be licensed by the Department of Licensing (DOL). Please see the Business and professional licenses page on the DOL website for more information.

Cosmetology, hair design, barber, manicurist, esthetician, or master esthetician license: Whether you operate as a business or as an employee providing any of these services, you must be licensed by DOL.

Permanent cosmetics license: Whether you operate as a business or as an employee providing permanent cosmetics services, you must be licensed by DOL.

Business license: If you plan to operate as a business rather than as an employee, you must apply for a business license with the Department of Revenue. You may add a city business license to your state business license application, if a city license is required for your location.

Salon/shop, personal service, or mobile unit license: If you plan to operate a salon, shop, personal service, or mobile unit in Washington, then you must be licensed as such. This license is issued by DOL in addition to your business license. This license is also required for those renting booths or chairs at a salon.

Income from tanning services is taxable under the Retailing business and occupation (B&O) tax classification, and you must collect sales tax. Examples of tanning services include:

• Airbrush tanning
• Other UV free tanning
• Spray tanning
• Tanning beds

You are considered the consumer of any items used in providing the tanning service.

References

RCW 82.04.050 Sale at retail, retail sale