Section 179 for Salon Owners: How to Write Off New Salon Equipment in 2026
Salon Business8 min read
If you buy pedicure chairs, manicure tables or other salon furniture for your business and have them installed and ready to use by December 31, 2026, federal tax rules can let you deduct the full cost this year instead of spreading it over several years. Here's how Section 179 and bonus depreciation work, what California does differently, and how to time a year end order.
Read this first
We sell salon equipment. We're not tax advisors, and this isn't tax advice. Use this guide to have a better conversation with your CPA, and confirm how these rules apply to your business before you buy.
The short answer
- Section 179 lets a business deduct up to $2,560,000 of qualifying equipment placed in service in 2026. The limit starts to shrink once purchases pass $4,090,000.
- 100% bonus depreciation is back, and permanent, for equipment acquired and placed in service after January 19, 2025.
- The deadline is about installation, not payment: the equipment has to be placed in service, meaning installed and ready to use, by December 31.
- California doesn't follow either rule. Its Section 179 limit is $25,000, and it doesn't allow bonus depreciation.
$2,560,000Federal Section 179 limit for 2026
100%Federal bonus depreciation on equipment acquired after January 19, 2025
$25,000California's Section 179 limit, with no bonus depreciation
What Section 179 does
Normally, a business recovers the cost of equipment a little at a time through depreciation, over several years. Section 179 of the tax code lets you elect to deduct the cost of qualifying equipment in the year you place it in service instead. For a salon, that can mean deducting new chairs and furniture on this year's return rather than over the next several.
Qualifying property is tangible equipment you buy for use in an active business. The IRS gives machinery, equipment and office furniture as examples, while buildings and their structural parts don't qualify. Pedicure chairs, manicure tables and other salon furniture are the kind of equipment these rules are written for, but no IRS publication names salon chairs specifically, so confirm the treatment with your CPA.
The 2026 numbers
| 2025 | 2026 | |
|---|---|---|
| Section 179 limit | $2,500,000 | $2,560,000 |
| Limit starts to phase out at | $4,000,000 | $4,090,000 |
| Bonus depreciation | 100% for equipment acquired after January 19, 2025 | 100% |
Federal figures from IRS Publication 946 and Revenue Procedure 2025-32. In 2026 the limit drops dollar for dollar above $4,090,000 and reaches zero at $6,650,000.
These limits come from the July 2025 federal tax law (Public Law 119-21), which raised the Section 179 limit to $2.5 million and the phase out threshold to $4 million starting with 2025, with inflation adjustments from 2026 on. Most salons will never get near them. The limits that matter more in practice are your business income and the calendar.
Section 179 vs bonus depreciation
Bonus depreciation gets you to the same place by a different road: it lets you deduct the full cost of qualifying equipment in the first year. Here's how the two differ.
| Section 179 | Bonus depreciation | |
|---|---|---|
| How you take it | You elect it on Form 4562 | Applies automatically unless you opt out for a class of property |
| Income limit | Can't be more than your taxable business income; the rest carries forward | No business income limit |
| Used equipment | Qualifies if you bought it, and not from a related person | Qualifies if neither you nor a predecessor used it before |
| California | Allowed, up to $25,000 | Not allowed |
Your CPA can choose the mix that fits your income this year and next.
The rule that matters most: placed in service by December 31
You can't deduct equipment just because you ordered or paid for it. The IRS says property is placed in service when it's ready and available for a specific use. Its own example is a machine delivered one year but not installed and working until the next: it's placed in service in the second year.
For a salon, that means each chair should be delivered, installed, connected and ready for clients by December 31 to count for 2026.
Plan for lead times
Most pedicure chairs are built to order. On our site they usually ship in about 2 to 3 weeks, some models take 6 to 8 weeks, and freight adds about 3 to 10 business days. Then your plumber and electrician need time to install them. If you want the deduction this year, order early, and call us to check current lead times on the chairs you're considering.
Working back from December 31
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Pick your chairs and options
Settle on models, colors and upgrades, and confirm the plumbing and power each station needs.
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Order with time to spare
Allow 2 to 3 weeks for most chairs to ship, and 6 to 8 weeks for slower models.
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Schedule freight and installers
Freight takes about 3 to 10 business days. Book your plumber and electrician for the week the chairs arrive.
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Install, test and keep the paperwork
Keep the invoice, the freight paperwork and your installer's invoice with your tax records, along with the date each station was ready for clients.
Financing still counts
You don't have to pay cash to take the deduction. The cost of equipment includes what you pay with debt, so equipment bought with a loan or financing can qualify in the year it's placed in service.
Leases are different. With a true lease, you're renting the equipment and deduct the payments instead, so there's no Section 179 or bonus depreciation. An agreement that works like a purchase, for example one where the title passes to you at the end or you can buy the equipment for a nominal amount, may be treated as a purchase. If you finance salon equipment through our financing partner APPROVE, ask them and your CPA which kind of agreement you're signing.
What California does differently
California sets its own rules, and for equipment they're much less generous:
- Section 179: California's limit is $25,000, and it starts to phase out once purchases pass $200,000.
- Bonus depreciation: California doesn't allow it, including the 100% bonus in the 2025 federal law.
- Separate records: because the federal and state deductions differ, your CPA keeps a separate California depreciation schedule (form FTB 3885A).
California's 2025 conformity law, SB 711, updated the state's link to the federal tax code but left out the July 2025 federal changes. In practice, a California salon that buys $20,000 of chairs and tables in 2026 may be able to deduct the full amount on both returns, while a $60,000 build out could be fully deductible federally but only partly deductible for California this year, with the rest depreciated over time.
What counts toward the cost
The cost you deduct includes more than the sticker price. IRS Publication 946 says cost includes sales tax, freight charges, and installation and testing fees. Ask your CPA how to treat plumbing or electrical work done to the building itself, which can be treated differently from the equipment.
A few more things your CPA will check
- The equipment has to be used more than 50% for business in the year you place it in service.
- If business use later drops to 50% or less, part of the deduction can come back as income.
- For LLCs, partnerships and S corporations, the limits apply to the business and to each owner.
- When you sell the equipment later, gain up to the amount you deducted is taxed as ordinary income.
Whale SpaOmnia Freeform Pedicure ChairSliding armrests and a 69" footprint.View chair
GulfstreamLa Mira Pedicure ChairGlass bowl and disposable OneJet jets.View chair
Whale SpaMira Triple Manicure Nail TableThree manicure stations in one table.View table
Frequently Asked Questions
Do pedicure chairs qualify for Section 179?
They're the kind of equipment Section 179 is meant for: tangible property bought for use in an active business and used more than 50% for business. No IRS publication names salon chairs specifically, so confirm with your CPA.
If I order in December and the chair arrives in January, can I deduct it for 2026?
No. The deduction follows the year the equipment is placed in service, meaning installed and ready to use, not the year you order or pay for it.
Can I take Section 179 on financed equipment?
Generally yes, if the agreement is a purchase. The cost of equipment includes amounts paid with debt. A true lease isn't eligible; you deduct the payments instead.
Does California allow Section 179?
Yes, but only up to $25,000, with a phase out starting at $200,000 of purchases. California doesn't allow bonus depreciation.
Can I deduct used salon equipment?
Section 179 can apply to used equipment you buy, as long as it isn't from a related person. Bonus depreciation can also apply if neither you nor a predecessor used it before.
Want your stations ready by December 31?
Check lead times before you order
Call or text us with the chairs you're considering. We'll check current lead times and freight timing, and go over the plumbing and power each station needs, so your equipment can be installed before the year ends.
Mike owns My Wellness Wiz and helps salon and spa owners choose, finance and ship pedicure chairs and salon furniture. Questions about your own floor plan? Call or text him at (888) 886-8373, Monday to Friday, 9:30 AM to 5:30 PM Pacific.
Sources
- IRS Publication 946, How To Depreciate Property
- IRS Revenue Procedure 2025-32 (2026 inflation adjustments)
- IRS news release IR-2025-103: 2026 inflation adjustments
- IRS: Additional first year depreciation deduction (bonus) FAQ
- IRS Instructions for Form 4562
- California Franchise Tax Board, Form 3885A instructions
- California Franchise Tax Board, federal conformity
This article is general information, not tax or legal advice. Tax rules change, and how they apply depends on your business. Talk to a tax professional before you make a purchase decision.
