Tax Write-Offs for New Med Spas: The Complete List

Starting a med spa involves significant upfront costs, but many of those expenses can reduce your tax bill. The IRS allows you to deduct ordinary and necessary business expenses, and for a new med spa, that includes everything from laser machines to office coffee. This guide covers the complete list of tax write-offs for new med spas, with realistic ranges and actionable steps you can take this week.

Startup Costs

Before you open your doors, you incur costs that can be deducted or amortized. The IRS allows you to deduct up to $5,000 in startup costs in your first year, with the remainder amortized over 180 months. Eligible costs include market research, training, legal fees, and initial advertising.

• Market research: $500-$2,000 for surveys or focus groups
• Legal and accounting fees: $1,000-$5,000 for entity formation, contracts, and tax setup
• Initial advertising: $500-$3,000 for website launch and grand opening promotions

Keep receipts for all pre-opening expenses. If your startup costs exceed $50,000, the $5,000 deduction is reduced dollar-for-dollar, so plan accordingly.

Equipment and Depreciation

Your biggest investment is likely medical equipment: lasers, injectables, and treatment chairs. You can deduct the full cost of equipment up to $1,220,000 in 2026 using Section 179, or use bonus depreciation to deduct 80% of the cost in the first year. Alternatively, you can depreciate over 5-7 years.

Equipment	Typical Cost	Deduction Method
Laser machine	$20,000-$100,000	Section 179 or bonus depreciation
Injection chairs	$2,000-$5,000 each	Section 179 or depreciation
Sterilization equipment	$1,000-$3,000	Section 179 or depreciation

For example, if you buy a $50,000 laser, you can deduct the full $50,000 in year one using Section 179, provided your business has taxable income. This can significantly lower your first-year tax liability.

Rent and Utilities

Your lease payments and utility bills are fully deductible. This includes rent for your treatment rooms, waiting area, and any storage space. If you work from home initially, you may qualify for the home office deduction, but only if you have a dedicated space used exclusively for business.

• Rent: $2,000-$8,000 per month depending on location
• Utilities: $300-$1,000 per month for electricity, water, and internet
• Home office deduction: $5 per square foot up to 300 square feet, or actual expenses

Keep copies of your lease and utility bills. If you pay rent in advance, deduct only the portion that applies to the current tax year.

Supplies and Inventory

Medical supplies, such as syringes, gloves, and skincare products, are deductible as supplies or cost of goods sold. This includes everything you use during treatments and items you sell retail.

• Injectable supplies: $500-$2,000 per month for syringes, needles, and numbing cream
• Skincare products: $1,000-$5,000 per month for retail inventory
• Disposable items: $200-$500 per month for gloves, masks, and linens

Track your inventory carefully. You can deduct the cost of supplies as you use them, or use the accrual method if you keep inventory on hand. Consult your accountant to choose the best method.

Staff Salaries and Benefits

Wages you pay to employees, including estheticians, nurses, and front desk staff, are deductible. This includes salaries, bonuses, and payroll taxes. You can also deduct the cost of health insurance and retirement plan contributions.

• Salaries: $30,000-$80,000 per year per employee
• Payroll taxes: 7.65% of wages for Social Security and Medicare
• Health insurance: $500-$1,500 per employee per month

If you hire independent contractors, you can deduct their fees as contract labor, but you must issue Form 1099-NEC if you pay them more than $600 in a year.

Marketing and Advertising

Marketing costs are fully deductible, including digital ads, print materials, and website maintenance. This is a key area to maximize your deductions, as it directly drives revenue.

• Google Ads: $500-$5,000 per month
• Social media ads: $300-$2,000 per month
• Website hosting and design: $50-$200 per month for hosting, $2,000-$10,000 for initial design
• Print materials: $200-$1,000 for brochures and business cards

Track all advertising expenses separately. If you sponsor local events or collaborate with influencers, those costs are also deductible.

Professional Services

Fees for your accountant, attorney, and business consultant are deductible. This includes tax preparation, legal advice, and ongoing financial planning.

• Accounting: $200-$500 per month for bookkeeping, $500-$2,000 for tax preparation
• Legal: $200-$500 per hour for contracts and compliance
• Consulting: $100-$300 per hour for business coaching

These expenses are often overlooked, but they are essential for a new business. Keep invoices and payment records.

Insurance

Your business insurance premiums are deductible. This includes general liability, professional liability (malpractice), and property insurance.

• General liability: $500-$1,500 per year
• Professional liability: $1,000-$3,000 per year
• Property insurance: $500-$2,000 per year

Shop around for quotes and bundle policies to save money. Your premiums are a legitimate business expense.

Software and Subscriptions

Software for scheduling, electronic health records (EHR), and accounting are deductible as business expenses. This includes monthly subscription fees and annual licenses.

• EHR software: $100-$500 per month
• Scheduling software: $50-$200 per month
• Accounting software: $20-$100 per month

If you purchase software outright, you can deduct the full cost in the year of purchase if it’s under $2,500, or depreciate it over time.

Continuing Education and Training

Costs for you and your staff to attend conferences, workshops, and certification courses are deductible. This includes registration fees, travel, and lodging.

• Conference registration: $500-$2,000 per event
• Travel and lodging: $500-$2,000 per trip
• Online courses: $100-$500 per course

Keep a log of your education expenses and the business purpose. The IRS requires that education maintains or improves skills required in your current business.

Vehicle and Travel Expenses

If you use your vehicle for business, you can deduct mileage or actual expenses. The standard mileage rate for 2026 is 67 cents per mile. Travel for business, such as visiting suppliers or attending trade shows, is also deductible.

• Mileage: 67 cents per mile
• Parking and tolls: Actual costs
• Airfare and hotels: Actual costs for business trips

Keep a mileage log and receipts. If you use your car for both personal and business, you can only deduct the business portion.

Miscellaneous Expenses

Other deductible expenses include bank fees, credit card processing fees, office supplies, and even coffee for the break room. Don’t overlook small costs, as they add up.

• Office supplies: $100-$500 per month
• Bank fees: $20-$100 per month
• Credit card processing: 2%-3% of sales

Keep receipts for all purchases, no matter how small. Use a dedicated business credit card to simplify tracking.

FAQ

Can I deduct the cost of my laser equipment in the first year? Yes, you can use Section 179 to deduct up to $1,220,000 in equipment costs in 2026, provided your business has taxable income. Bonus depreciation also allows an 80% deduction in the first year.

What if I work from home initially? You may qualify for the home office deduction if you have a dedicated space used exclusively for business. You can deduct $5 per square foot up to 300 square feet, or use actual expenses.

How do I track my expenses for tax purposes? Use accounting software like QuickBooks or Xero to track income and expenses. Keep all receipts and categorize expenses as you go. Consider hiring a bookkeeper to ensure accuracy.

Are there any tax credits for new med spas? Yes, you may qualify for the Work Opportunity Tax Credit if you hire employees from certain target groups. Also, energy efficiency improvements to your facility may qualify for credits.

The Bottom Line

Maximizing your tax write-offs as a new med spa requires careful tracking and planning. Start by organizing your expenses into categories, using accounting software, and consulting a tax professional. The deductions listed here can save you thousands of dollars in your first year, so don’t leave money on the table. Take action this week: set up your expense tracking system, gather your receipts, and schedule a meeting with an accountant who specializes in medical businesses.

Related guides

• 7 Mistakes New Med Spas Make in Their First Year
• S-Corp vs LLC for New Med Spas: Which Saves More on Taxes?
• Tax Deductions for New Med Spas You Are Probably Missing