Hair salons, barbershops, spas, and other beauty service establishments owners are mostly comprised of middle class women and minorities, employing more than 2x the national average.
CONGRESS PASSES TIP TAX CREDIT
A historic victory for the professional beauty industry brings long-overdue tax fairness to salon, spa and barbershop owners.
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PBA has invested significantly in making this victory possible—and there are still costs to cover. As industry owners stand to benefit financially from this historic achievement, we encourage your support in helping us close out the final phase of this effort.
Read about FICA on Forbes
PBA was spotlighted in a Forbes article, where they provided insights on how the FICA Tax Tip credit can benefit both employers and employees.

What Is The FICA Tax Tip Credit?
In 1993, Congress created the 45B FICA tax tip credit, allowing restaurants to claim a dollar-for-dollar credit on the employer-paid portion of FICA taxes for tips employees earn directly from customers.
Since 2001, the beauty industry has fought to extend that same benefit to our small-business owners. As the second-most tipped industry in the country, it was only fair that beauty professionals receive equal treatment under the tax code.
The Professional Beauty Association is proud to share that, as of July 4, 2025, our industry finally has access to this long-overdue credit—and the recognition it deserves.

FICA IN THE NEWS
The Detroit News – Tolunay: Keep the beauty in the Big, Beautiful Bill
The Hill – Salons and Barbershops are Being Taxed Unfairly
Tampa Bay Times – Tipping at Florida’s Hair Salons Should Get the Same Treatment as at Restaurants
Pittsburgh Post-Gazette – Rick Santorum: Our Tax System is Unfair to Salons and Barber Shops
Who this affects

14% African Americans

23% Asians

83% Women

60% women-owned salons

Alliance for
Tax Equity
- International Franchise Association
- National Association of Barber Boards of America
- National Association of Women Business Owners
- National Interstate Council of State Boards
- Personal Care Products Council
- Professional Beauty Association
- Professional Beauty Employment Coalition
- The Esthetics Council
- Associated Skin Care Professionals
- Associated Hair Professionals
- Associated Nail Professionals
- Intercoiffure America Canada
- International Salon Spa Business Network
- International Spa Association
- Cosmetologists Chicago
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Our members power our Advocacy campaigns to help elevate and protect our professional industry from deregulation. Join today and support our Government Affairs team to help them continue their essential work.