To track tips as a hair stylist, write down every tip on the day you receive it — per client, with the date and whether it was cash or card — then total it weekly and monthly. A daily log is what the IRS asks for and what makes tip income visible.
Why should stylists track tips separately?
Tracking tips separately shows how much of your income depends on tips, and it gives you the daily record tax authorities expect. Mixed into one daily total, tips disappear: you can’t tell whether a good month came from more clients, higher prices or generous regulars.
For many stylists, tips are a meaningful share of take-home pay. Knowing the real number helps you price services, plan for slow months and set an honest revenue goal.
What should a tip record include?
A useful tip record has five fields for every client:
| Field | Example | Why it matters |
|---|---|---|
| Date | Fri, May 1 | Daily records are what the IRS asks for |
| Client | Leah C. | Spot your best regulars |
| Service amount | $125 | Tip as a share of the ticket |
| Tip amount | $10 | The number you’re tracking |
| Cash or card | Card | Card tips may already be on payroll records |
The 30-second daily method
- Log tips with the client, not later. Enter the tip when you enter the service price — memory fades by the evening.
- Close the day. Before you leave, check the day total and tip total match your cash drawer and card app.
- Review weekly. Look at the week’s tip total and tip share. Is it steady, rising or falling?
- Export monthly. Keep a monthly export (CSV or spreadsheet) with your tax records.
How do I track tips in Chairlog?
In Chairlog, each client card has a Tip field next to Service and Product. Type the amount or tap a quick preset, and Chairlog shows the tip with a colored diamond under the client’s total. The day header shows total earned and client count, and Analytics shows tips as their own category for any week, month or quarter. Chairlog Pro can export everything to CSV for your accountant.
If you never take tips, you can hide the tip field in Settings.
Tips and taxes (US)
- The IRS treats tips as taxable income and recommends keeping a daily tip record; see IRS Publication 531, Reporting Tip Income.
- Employees who receive $20 or more in tips in a month must report them to their employer.
- For tax years 2025–2028, barbers, hairdressers, hairstylists and cosmetologists are on the list of occupations eligible for the new qualified-tips deduction of up to $25,000 per year, with income phase-outs (summary of the April 2026 final regulations).
This guide is general information, not tax advice. Rules differ by country — check with a local accountant.
Frequently asked questions
Do hair stylists have to report tips?
In the US, yes. Tips are taxable income. The IRS asks you to keep a daily tip record, and employees who receive $20 or more in tips in a month must report them to their employer. Self-employed stylists report tips as business income. Check with a tax professional in your country.
Can hair stylists deduct tips under the new US tips deduction?
Barbers, hairdressers, hairstylists and cosmetologists are on the IRS list of occupations eligible for the qualified-tips deduction, worth up to $25,000 per year for tax years 2025 through 2028, with income limits. Accurate tip records make the deduction easier to claim.
What is the easiest way to track tips?
Log tips at the same moment you log the client, in one place. An app like Chairlog has a separate tip field on each client card, so tips are recorded with the visit and totaled automatically.