The Beautiful Tax Bill: A Gorgeous Break for Salon Owners & Service-Based Small Businesses in 2025

Posted on July 9, 2025

The recently passed One Big Beautiful Bill, signed into law by President Trump on July 4, 2025, is more than just patriotic fanfare—it could be the makeover your finances have been waiting for. Designed with working-class professionals and small business owners in mind, this bill is especially beneficial to salon owners, beauty experts, and other hands-on entrepreneurs. If you work long hours, rely on tips, and regularly invest in tools to keep your business glowing, it’s time to take a closer look.

Running a salon or spa isn’t just about flawless fades and perfect brows—it’s about balancing payroll, inventory, client experience, and your own income. This tax bill aims to lighten that load.

One of its boldest moves is making tips tax-deductible, up to a whopping $25,000. That’s a game-changer for beauty professionals like stylists, barbers, estheticians, and nail artists whose income is largely tipped-based. Add in the fact that overtime wages—up to $12,500 annually—can now be deducted, and suddenly all those late nights during prom and wedding season start looking a lot more rewarding.

Salon owners and independent beauty pros will be thrilled to hear that the bill also expands small business expensing laws, allowing you to write off the full cost of key equipment. Think salon chairs, wash stations, dryers, clippers, spa tools, even that sleek reception desk you’ve been eyeing. If your equipment is American-made and financed, the bill sweetens the deal further by allowing a deduction of up to $10,000 in interest payments on that loan.

Got kids? Good news continues. The Child Tax Credit has been increased to $2,200 per child, helping working parents—especially single business owners—cover both their personal and professional responsibilities with a bit more breathing room.

Imagine you're a salon owner in Queens with a small team. Each stylist earns roughly $20,000 in tips—that’s now deductible. They clock serious hours during holidays and special events—those extra earnings are deductible too. If you’ve recently financed a set of stylish, American-made wash bowls and chairs, the interest on that loan just became a write-off. Stack that on top of your equipment deductions and family credits, and this tax season might just be your most beautiful yet.

While the perks are major, they’re not unlimited. These deductions are for federal income taxes only and may be subject to state-specific rules. The benefits begin phasing out for higher earners—$150,000 for individuals or $300,000 for couples filing jointly—and many parts of the bill will sunset after 2028 unless extended by future legislation.

Whether you’re a bartender, a teacher, a retiree, or a small business owner, the Beautiful Tax Bill could significantly impact your bottom line. While the bill has its critics and complexities, one thing is clear: tax season in 2026 will look very different.