How to Start a Hair Salon in New Jersey (2026)

Last updated: February 25, 2026

Opening a hair salon in New Jersey requires two separate licenses from the NJ State Board of Cosmetology and Hairstyling: a personal cosmetology-hairstylist license for each practitioner, and a shop (salon) license for the business location. Every salon must have at least one licensed professional designated as in charge of daily operations. New Jersey requires 1,200 hours of cosmetology school training and a passing score on the board exam. Salon services are also taxable in New Jersey at 6.625%. This guide covers every requirement to legally open and run a hair salon in the Garden State in 2026.

Hair Salon Requirements in New Jersey at a Glance

Requirement	Agency	Cost	Timeline
LLC Formation	NJ DORES	$125	~3 business days
Cosmetology-Hairstylist License (personal)	NJ Board of Cosmetology and Hairstyling (Division of Consumer Affairs)	$100 application + $60 license (year 1) or $30 (year 2 of cycle)	After completing 1,200 hours + passing exam
Salon Shop License	NJ Board of Cosmetology and Hairstyling	Varies; contact board for current fee	2-4 weeks after application
NJ-REG / Sales Tax Registration	NJ Division of Revenue	Free	Within 60 days of LLC formation
Certificate of Occupancy	Local municipality	$50-$300	Before opening; varies by municipality
Workers’ Compensation Insurance	Licensed NJ carrier	Varies	Before hiring any employees

How to Start a Hair Salon in New Jersey (Step by Step)

Step 1: Complete 1,200 Hours of Cosmetology Training

To become a licensed cosmetologist in New Jersey, you must complete at least 1,200 hours of instruction in cosmetology and hairstyling at a school approved by the NJ State Board of Cosmetology and Hairstyling. Training from an approved school in another state or a foreign country is also accepted. The 1,200 hours must cover cutting, styling, coloring, chemical services, sanitation, and related theory.

Eligibility requirements:

Must be at least 17 years old
Must have a high school diploma or GED

Step 2: Pass the Board Exam

After completing your training hours, you must pass the cosmetology examination administered by the NJ State Board of Cosmetology and Hairstyling. The exam tests both theoretical knowledge and practical skills. Contact the board for current examination scheduling and testing center information.

Step 3: Apply for Your Personal Cosmetology-Hairstylist License

Submit your license application to the NJ Division of Consumer Affairs – Board of Cosmetology and Hairstyling with:

Completed application form
$100 filing and application fee (non-refundable)
$60 license fee if applying in year 1 of the 2-year cycle, or $30 if applying in year 2
Proof of 1,200 training hours
Proof of age (17+) and high school diploma/GED
Passing exam score

Licenses follow a 2-year renewal cycle. New Jersey currently does not require continuing education for cosmetology license renewal.

Step 4: Form Your Business Entity and Register for Taxes

File your LLC Certificate of Formation with NJ DORES ($125). File the NJ-REG form within 60 days for sales tax registration.

Important: Salon services (haircuts, coloring, styling, chemical treatments) are taxable in New Jersey at 6.625%. Product sales (shampoo, styling products) are also taxable. You must collect and remit sales tax on all taxable transactions.

Step 5: Secure Your Salon Location

When evaluating spaces, ensure they meet local zoning requirements for commercial use and can be approved for cosmetology services. Before opening, obtain a certificate of occupancy from your municipality confirming the space is approved for use as a salon. Your space will need proper ventilation, plumbing (shampoo bowls), electrical capacity, and compliance with NJ Board of Cosmetology physical facility standards.

Step 6: Apply for Your Salon Shop License

Every salon location must have a separate shop license from the NJ Board of Cosmetology and Hairstyling. You cannot operate a salon without this license. The shop license requires:

Designating a licensed cosmetologist or other licensed professional as the person in charge of daily salon operations
Meeting all physical facility standards (sanitation equipment, proper disposal, ventilation)
Passing an inspection by the board’s enforcement staff

Step 7: Hire Staff and Get Insurance

Before employing any cosmetologists or other licensed practitioners in your salon, verify that each holds a current, valid NJ license. Check license status through the NJ Division of Consumer Affairs license verification portal.

Obtain workers’ compensation insurance before any employees start work. Also obtain general liability insurance for client incidents and property coverage for your equipment and salon furnishings.

Cost to Start a Hair Salon in New Jersey

Item	Cost	Notes
LLC Formation + Annual Report	$125 + $75/year	One-time + annual
Personal Cosmetology License Application + Fee	$100 + $60 = $160	One-time; $30 if in year 2 of cycle
Cosmetology School (1,200 hours)	$10,000-$20,000	Major cost; price varies by school
Salon Shop License	Contact NJ Board of Cosmetology for current fee	Required for each salon location
Certificate of Occupancy	$50-$300	Varies by municipality
Salon Build-Out or Renovation	$15,000-$75,000	Shampoo bowls, plumbing, stations, lighting, flooring
Equipment and Supplies	$5,000-$20,000	Styling chairs, mirrors, tools, towels, products
General Liability Insurance	$500-$2,000/year	Salon-specific policy recommended
Workers’ Comp (if hiring)	Varies by payroll	Required for all employees

Estimated total startup cost: $40,000-$120,000+ for a full salon build-out

Related New Jersey Business Guides

← Back to all New Jersey business guides

Frequently Asked Questions

How many training hours are required for a cosmetology license in New Jersey?

New Jersey requires a minimum of 1,200 hours of cosmetology and hairstyling instruction at an approved school. Training from approved out-of-state or foreign schools is also accepted. Additionally, applicants must be at least 17 years old and hold a high school diploma or GED.

Do I need a separate license for my salon location?

Yes. Every salon in New Jersey must have a shop license from the NJ State Board of Cosmetology and Hairstyling, separate from the personal cosmetology license held by each practitioner. The shop license requires designating a licensed professional as person in charge of daily operations.

Are salon services taxable in New Jersey?

Yes. Cosmetology and hair salon services are subject to New Jersey’s 6.625% sales tax. Retail product sales are also taxable. You must collect and remit sales tax on all taxable transactions – register through the NJ Division of Taxation via the NJ-REG form.

Does New Jersey require continuing education to renew a cosmetology license?

No. As of 2026, New Jersey does not require continuing education for cosmetology-hairstylist license renewal. The license renews on a 2-year cycle. Keep your address current with the board to receive renewal notices.

Can I rent booth space to other cosmetologists in my New Jersey salon?

Yes, booth rental arrangements are common in NJ salons. Each booth renter must hold their own valid NJ cosmetology license. You as the salon owner remain responsible for maintaining the shop license and ensuring the overall facility meets board standards. Booth renters who are truly independent contractors are generally not subject to your workers’ comp policy – consult an attorney or accountant on proper classification.

More New Jersey Business Guides

About the Author

Robert Smith has run a licensed private investigation firm for 8 years from the Florida-Georgia state line - where he learned firsthand how wildly business licensing rules differ between states just miles apart. He personally researched requirements across all 50 states and D.C., reviewing hundreds of government sources over hundreds of hours to build guides he wished existed when he started. Not a lawyer or accountant - just a business owner who has done the research so you don't have to.

Learn more about our research process