Is Massage Therapy a Taxable Service in Your State? Pin it

After going to massage therapy school, obtaining a license to practice and finally setting up shop, the last thing many massage therapists want to recall about is paying the government sales tax. There is no doubt that massage therapists provide an extremely valuable service, just states oft disagree on the taxability of massage.

Before you find yourself receiving a notification from your local or country treasury requesting sales tax acquirement from previous years, brand sure you lot know all about the fiscal laws that employ to your massage therapy business!

A majority of massage therapists practice non need to accuse their clients sales revenue enhancement. However, some local and state governments place massage therapy in a taxable category – typically considering it to exist a personal or luxury service. The list below is not an accented guide of where massage therapy is taxable; rather it is a representation of the tax laws in certain U.S. states and municipalities where a massage therapist might be responsible for collecting sales tax. It is always important for therapists to thoroughly review the tax laws in every location they practice, recognizing that laws are continually evolving and may contain crucial loopholes.

Depending on several details, practicing massage therapy in the following five places may require the inclusion of sales revenue enhancement in your fee:

  1. Ohio – As of August 1, 2001, the state of Ohio expanded the telescopic of massage therapy to include tax collection. Ohio Governor Bob Taft signed Business firm Neb 95 into law, which increased the state'southward sales tax base to six percent and expanded its provisions to include massage therapy. Withal, massage therapy performed and/or prescribed by a dr. is exempt from sales tax collection. Additionally, therapists are required to remit taxes monthly, quarterly or semi-annually depending on their circumstances, and are strongly encouraged to maintain business organisation records documenting which clients are exempt from paying the tax.
  2. New Jersey – Effective Oct ane, 2006, sales tax applies to massage, bodywork, and somatic services that are rendered in New Jersey. If a medical doctor, doctor of osteopathy, dentist, acupuncturist, chiropractor, physical therapist, registered nurse, podiatrist or certified midwife administers massage therapy within the scope of their license, sales taxation collection is not required. Like to the law in Ohio, a doctor'southward prescription may be an exemption. A prescription for massage therapy must be written by a licensed medical doctor, osteopath, chiropractor, podiatrist, dentist or psychologist with a doctorate in psychology for a patient for whom the medical doctor, osteopath, chiropractor, podiatrist, psychologist or dentist is providing handling or consultation services inside the scope of his or her license.
  3. Minnesota – In Minnesota, a massage therapist who performs services that are non for the purpose of treatment of an illness, injury or illness is subject to sales tax but is non liable for MinnesotaCare taxation. If the massage is provided equally a treatment for an disease, injury or affliction it is subject to MinnesotaCare tax.
  4. New York City – Massage therapy, even if administered by a licensed massage therapist nether Title VIII of the Education Police, is taxable at the rate of iv.5 pct. Massage by a medico, physiotherapist or chiropractor, etc., who is performing these services for medical reasons, is non taxable. There is no sales tax on massage therapy when performed in New York Land outside the limits of New York City.
  5. Connecticut – As long equally y'all are a licensed massage therapist, massage therapy is not taxed in Connecticut. Although, massage therapy administered by someone other than a licensed massage therapist has been taxed since 1991.

While a majority of places in the U.Southward. practise not consider massage therapy to be a taxable service, several do include it in their government's collections. If yous are not already familiar with the taxation laws in your state and municipality, make sure you lot review them thoroughly. Being properly informed will aid you avoid a potentially costly situation where a tax collector delivers a request for previously uncollected sales taxation.