Tips and taxes: the basics
Short answers to the questions nail techs ask most about tips and taxes. Always check your own situation with a licensed tax professional.
✋ Join the waitlist 👀 Try the demo
⚠️ For information only. This is not an official tax form or legal paper. Nail Signature and its AI can make mistakes: check every number with your accountant or a licensed tax professional before you file or sign anything. Nail Signature is not responsible for errors.
Are tips taxable?
Yes. Cash tips and card tips are income. Keep a record of every tip you get. This is general information, not tax or legal advice.
Do I have to tell the salon about my tips?
If you are an employee and you get $20 or more in tips in a month, the IRS says you report them to your employer, who includes them on your W-2. Booth renters and other contractors report tips on their own tax return. This is general information, not tax or legal advice.
What is the new deduction for tips?
From 2025 through 2028, people in jobs on the Treasury’s tipped-jobs list, which includes manicurists and pedicurists, may be able to deduct up to $25,000 of qualified tips on their federal return. There are income limits and rules. Ask a tax professional whether you qualify. This is general information, not tax or legal advice.
Who pays the card fee on a tip?
That depends on the salon. Many salons pay the tip to the tech in full. If you are an employee, ask your salon how it handles card tips. This is general information, not tax or legal advice.
Do Florida nail salons charge sales tax?
On retail products, yes (for example 7% in Miami-Dade). Services like manicures and pedicures are generally not taxed in Florida. A salon that sells products files a sales tax return, usually by the 20th of each month. This is general information, not tax or legal advice.
How does Nail Signature help with tips?
Each tip is kept with the visit and added to the tech’s earnings, so techs see their tips by week and month, and owners see what to pay out. The numbers are for information only; your tax forms come from your salon or your tax professional.
Be one of the first salons
Join the waitlist, or try the sample salon now. No sign-in needed.