Barber Shops, Hair Salons, Spas & New Jersey Sales Tax

Rev. 5/23

About New Jersey Taxes

Publication ANJ-19

Introduction

Barber shops, hair salons, spas, and similar establishments are primarily engaged in the business of

providing personal services to customers. This publication explains that although most charges for

personal services are exempt from Sales and Use Tax, certain services performed in salons are taxable.

In addition, many salons also sell hair care or other beauty products (e.g., wigs, hair styling products,

skin care products, etc.) that are subject to Sales Tax. This publication also explains who is responsible

for paying Sales Tax, and which transactions are exempt from tax.

Note: This publication does not apply to services provided for pets, horses, or other animals. For more

information, see ANJ-12,

Veterinarians and New Jersey Sales Tax

Exempt Services

Most personal services performed in a salon are exempt from Sales Tax. Therefore, the salon’s

customers do not pay Sales Tax for these services. The following are examples of services exempt from

Sales Tax at a salon or day spa:

Hair Services

 Braiding;

 Cutting;

 Deep conditioning;

 Hair extensions;

 Hair straightening;

 Hair transplants;

 Highlighting and coloring;

 Perming;

 Scalp treatments;

 Shampooing;

 Styling; and

 Updos.

Nail Services

 Airbrushing;

 Fills;

 Full Sets;

 Manicures;

 Nail sculpting;

 Paraffin Treatments;

 Pedicures;

 Polish changes; and

 Wraps.

Beauty Services

 Makeup application;

 Makeup lessons; and

 Eyelash extension services.

Skin Care/Wellness

Treatments

 Facials;

 Infusion Therapy (IV bags);

 Microdermabrasion;

 Peels;

 Scrubs; and

 Wraps.

Hair Removal

 Waxing; and

 Threading.

Publication ANJ–19 About New Jersey Taxes:

Barber Shops, Hair Salons & Spas

Rev. 5/23

Taxable Services

Certain personal services performed in a salon are taxable. Therefore, the salon’s customers must pay

Sales Tax for these services. The salon or spa must separately state the tax on all invoices. The

following are examples of taxable services at a salon or day spa:

Massage Services

 Deep tissue/body massages;

and

 Swedish massages.

Tanning Services

 Sunless tan applications;

and

 Tanning beds/booth.

Tattooing

 Permanent cosmetic

makeup applications

(except by prescription in

conjunction with

reconstructive breast

surgery).

Supplies and Equipment

Owners of salons pay Sales Tax on the supplies and equipment that will be used to provide their

services. The salon is the end user of these items, and, therefore, must pay Sales Tax on these

purchases. For example, a salon owner must pay Sales Tax on the purchase of capes used when cutting

hair. If the salon owner does not pay Sales Tax at the time of purchase, the salon owner owes Use Tax.

For more information on Use Tax, see ANJ-7,

Use Tax in New Jersey

The following are examples of taxable supplies and equipment:

 Acrylic tips;

 Barber and stylist chairs;

 Blow dryers;

 Brushes, combs;

 Cabinets for supplies;

 Cotton for perming;

 Curling irons;

 Curlers;

 Customer gowns;

 Hair dye;

 Hair removal strips;

 Massage tables and chairs;

 Mirrors;

 Nail polish and files;

 Scissors;

 Shampoo, conditioner;

 Tanning beds; and

 Wax.

Retail Sales

When salons sell tangible personal property (such as shampoo, conditioner, wigs*, makeup, nail polish,

etc.) in addition to providing personal services, Sales Tax must be collected on the sale of those taxable

items. Products that will be sold to customers may be purchased by the salon without paying Sales Tax

with a fully completed New Jersey Resale Certificate (Form ST-3) or the Streamlined Sales and Use

Tax Agreement Certificate of Exemption (Form ST-SST). The resale certificate may be used to

purchase items for resale only. If the salon cannot distinguish between what it will use in providing its

personal services and what it will sell, the salon must pay Sales Tax on the transaction.

* While in general, the purchase of wigs is treated as a taxable purchase of an accessory, the purchase

of wigs by patients who have lost their hair from chemotherapy is deemed to be exempt under N.J.S.A.

Publication ANJ–19 About New Jersey Taxes:

Barber Shops, Hair Salons & Spas

Rev. 5/23

54:32B-8.1. The salon would collect Sales Tax on the wig at the time of purchase. Then, the purchaser

would request a refund from the Division by submitting a Claim for Refund, Form A-3730. You would

need to include documentation that the wig is for use by a chemotherapy patient.

Example: A salon sells a customer a hot oil treatment to use at home. The customer pays Sales Tax,

which is then remitted to the State. When the salon owner purchases the hot oil treatment for resale,

the salon owner may issue a fully completed resale certificate to the supplier and pay no Sales Tax.

Example: The salon purchases nail polish for both retail sales to customers and manicurists’ use when

polishing nails. If the salon owner is unable to determine how much of the nail polish purchased will be

sold to customers and how much will be used by the salon’s staff, Sales Tax must be paid on all of the

nail polish purchased.

If a salon owner paid Sales Tax on items that were later resold, and tax was collected from the client

and remitted to the State, the salon owner may be entitled to a refund. To apply for a refund, a Claim

for Refund (Form A-3730) must be completed.

Sales for Resale

When a salon sells taxable products to a customer who intends to resell the items, the salon is not

required to collect Sales Tax provided the purchaser issues a fully completed resale certificate.

Example: A spa registered with New Jersey runs out of massage oil that it sells to clients at retail, and

decides to buy the massage oil from Another Salon, which is also registered with New Jersey. The spa’s

owner issues the other salon a fully completed resale certificate and pays no Sales Tax to the other

salon. The spa then collects Sales Tax from its clients when it sells the massage oil.

Out-of-state businesses may also make tax-exempt purchases in New Jersey of goods and services that

will be resold in another state. When goods are picked up in New Jersey, qualified businesses may

issue the Resale Certificate for Non-New Jersey Sellers (Form ST-3NR) or the Streamlined Sales

and Use Tax Agreement Certificate of Exemption (Form ST-SST).

Example: A Pennsylvania salon exhausts its inventory of tanning lotion it sells to clients and decides to

purchase a supply from a New Jersey salon. The Pennsylvania salon owner, who is not registered with

New Jersey, issues Form ST-3NR when they come to New Jersey to pick up the tanning lotion and does

not pay New Jersey Sales Tax on that lotion. The New Jersey salon accepts the certificate and does not

charge Sales Tax on the transaction.

Registration

Businesses that provide services and/or sell tangible personal property in New Jersey are required to

online through the Division of Revenue and Enterprise Services’ NJ Business Gateway Services website.

Publication ANJ–19  About New Jersey Taxes: 
Barber Shops, Hair Salons & Spas 
Rev. 5/23 
 
For more information about starting a business in New Jersey, see our Starting a Business Tax Guide. 
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This  document  is  designed  to  provide  guidance  to  taxpayers  and  is  accurate  as  of  the  date  issued. 
Subsequent changes in tax law or its interpretation may affect the accuracy of this publication.
 
 