Massage Therapy Deductions: Supplies, Equipment, and Home Studio Expenses

Massage therapy deductions:

Supplies (fully deductible, ordinary business expense):

• Massage oils, lotions, and creams: $1,000-$3,000/year for a busy therapist
• Essential oils and aromatherapy supplies
• Linens (sheets, face cradle covers, blankets): $500-$1,500/year
• Laundry costs (commercial laundry service or in-office washer/dryer usage)
• Disposable supplies (face rest covers, gloves, sanitizer)
• Hot towel supplies

Equipment (Section 179 or de minimis safe harbor):

• Massage table ($200-$3,000): de minimis safe harbor for tables under $2,500; Section 179 for electric lift tables ($3,000-$8,000)
• Hot stone set and warmer ($200-$500): de minimis safe harbor
• Sound system for treatment room
• Towel warmer ($100-$400)
• Bolsters, pillows, and positioning aids
• Washer and dryer (if in-office, business-use percentage applies)

Insurance:

• Professional liability insurance: $200-$600/year, fully deductible
• General liability: $300-$800/year
• Health insurance (self-employed deduction, above-the-line): $4,000-$12,000/year

Professional development:

• CEU (continuing education unit) courses: deductible (required to maintain license)
• State massage license renewal: deductible
• Professional association membership (AMTA, ABMP): deductible
• Specialty certifications (myofascial release, sports massage, craniosacral): deductible

Facility costs:

• Rent for treatment room or shared spa space: deductible
• Home office/studio: regular method or simplified method ($5/sq ft, max 300 sq ft)
• Booth rental fees (if renting a room in a spa or chiropractic office): deductible
• Utilities allocated to treatment space

Tips:

• Tips are taxable income and must be reported
• Tips received in cash are still reportable (not just credit card tips)
• If the therapist is self-employed, tips are subject to self-employment tax