No tax on tips:
A Historic Win for the Beauty Industry
For decades, salon owners, spas, barbershops, and beauty professionals fought for equal treatment under federal tax law. The expansion of the 45B FICA Tip Tax Credit and No Tax on Tips legislation marked a turning point for the entire industry.
This platform provides the education, tools, IRS resources, and advocacy updates helping beauty businesses understand the law, maximize benefits, and build on the momentum of this historic victory.
Together, the industry changed policy. Now it’s time to maximize the opportunity.
State conformity information is based on publicly available guidance as of the date last updated. Many states have not issued formal guidance on the No Tax on Tips deduction. This information is not a substitute for advice from a CPA licensed in your state.
Scan this QR code to open our No Tax on Tips Link Hub.
Key Benefits of the No Tax on Tips Deduction
IRS Form 8846 Deduction
Claim the federal deduction for tips received from customers, reducing your taxable income and overall tax liability.
Section 45B FICA Credit
Reduce your FICA tax burden by up to 100% on tips, effectively eliminating the 7.65% payroll tax on your earnings.
IRS Compliance Support
Access expert guidance and downloadable IRS forms to ensure your business remains compliant with the latest federal regulations.
How to Claim FICA Tip Credit
Learn how salon owners can utilize the Section 45B tax credit to reduce their business costs by claiming credits on Medicare and Social Security taxes paid on employee tip earnings.
Latest Blog Posts
Advocating for Fairness in the Beauty Industry
We are dedicated to empowering salon owners and beauty professionals with the essential resources needed to navigate federal tax legislation. Our mission is to ensure that the hard work and tips of our industry are recognized and protected by the IRS.