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

Last updated: February 26, 2026

Opening a hair salon in New Mexico requires both an individual cosmetology license and an establishment permit, both issued by the New Mexico Board of Barbers and Cosmetologists under the Regulation and Licensing Department (RLD). Individual cosmetologists must complete 1,600 hours of training at a licensed school and pass a board-approved examination. New Mexico requires no continuing education for licensed cosmetologists, and license fees are among the lowest in the country at $50. This guide covers every step for 2026.

Hair Salon Requirements in New Mexico at a Glance

Requirement	Agency	Cost	Timeline
LLC Formation	NM Secretary of State	$50	1-3 business days
Cosmetology School (1,600 hours)	Licensed NM cosmetology school	$10,000-$20,000	12-18 months
State Board Exam (theory + practical)	Board-approved testing provider	$100-$200	1-2 days
Cosmetology Individual License	NM Board of Barbers & Cosmetologists (RLD)	$50	2-4 weeks
Annual License Renewal (birthday month)	NM Board of Barbers & Cosmetologists	$50/year	Annual
Salon Establishment Permit	NM Board of Barbers & Cosmetologists (RLD)	Varies (check RLD fee schedule)	2-4 weeks after inspection
GRT Registration	NM Taxation & Revenue Dept	Free	1-2 days
Workers’ Compensation (3+ employees)	Private insurer	Varies by payroll	Before hiring

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

Step 1: Complete Cosmetology Training (1,600 Hours)

To become a licensed cosmetologist in New Mexico, you must complete 1,600 hours of education at a school licensed by the NM Board of Barbers and Cosmetologists. You must be at least 17 years old and have completed the second year of high school (or equivalent) to enroll. Training programs typically take 12-18 months full-time. Several community colleges and private cosmetology schools in Albuquerque, Santa Fe, and other cities offer accredited programs.

Step 2: Pass the State Board Examination

After completing your 1,600 training hours, you must pass a board-approved licensing examination consisting of both a theory (written) and practical (hands-on) component. The minimum passing score is 70% (effective January 13, 2026). Testing is administered by a board-approved third-party provider. Exam fees typically run $100-$200.

Step 3: Apply for Your Individual Cosmetology License

Submit your license application to the NM Board of Barbers and Cosmetologists (under RLD). Include your exam results, school transcript (proof of 1,600 hours), and the application fee. Initial license fee: $50. Contact the Board at 505-476-4622 or visit rld.nm.gov.

Licenses expire annually on your birthday. Renewal fee: $50/year. New Mexico does not require continuing education for licensed cosmetologists (only instructors must complete 12 hours CE annually). Late renewal fee: $40.

Step 4: Form Your Business Entity

File your LLC with the New Mexico Secretary of State at enterprise.sos.nm.gov for $50. No annual report required. Obtain your EIN from IRS for free. New Mexico has no DBA registration requirement.

Step 5: Secure and Prepare Your Salon Space

Lease or purchase a commercial space that complies with NM Board requirements for salon establishments. Key requirements typically include:

• Separate shampoo bowl and styling stations
• Adequate ventilation and lighting
• Proper sanitation equipment (autoclave or UV sanitizer, wet disinfectant containers)
• Running hot and cold water at each station (or easily accessible)
• Separate storage for clean and soiled towels and implements
• Restroom access for clients and staff

Step 6: Apply for Salon Establishment Permit

Any business providing cosmetology services must hold a salon establishment permit from the NM Board of Barbers and Cosmetologists. Apply after your space is ready for inspection. The Board will schedule an on-site inspection before issuing the permit. Check the current establishment permit fee at rld.nm.gov. Booth renters operating within a permitted salon may not need a separate establishment permit but must hold their own individual license.

Step 7: Register for Gross Receipts Tax

Salon services are taxable under New Mexico’s Gross Receipts Tax (GRT). Unlike some states that exempt salon services, New Mexico’s GRT applies to most services. Register through TRD TAP at tap.state.nm.us before your first service. Combined GRT rates at your location typically run 7%-9.3%. Product sales are also subject to GRT.

Cost to Start a Hair Salon in New Mexico

Item	Cost	Notes
Cosmetology School (1,600 hours)	$10,000-$20,000	Varies by school and program
State Board Exam	$100-$200	Theory + practical
Individual Cosmetology License	$50	Renews annually ($50) on birthday
LLC Formation	$50	One-time; no annual report fee
Registered Agent	$49-$150/year	Required for LLC
Salon Establishment Permit	Check RLD fee schedule	Required before opening
Salon Equipment (chairs, stations, etc.)	$5,000-$25,000	Depends on number of stations
Leasehold Improvements	$2,000-$20,000	Plumbing, flooring, electrical
General Liability Insurance	$500-$1,500/year	Professional liability recommended

Estimated total startup cost (excluding school tuition): $10,000-$50,000

Related New Mexico Business Guides

• How to Start a Cleaning Service in New Mexico
• How to Start a Food Truck in New Mexico
• How to Start a Daycare in New Mexico
• How to Start an HVAC Business in New Mexico
• How to Start a Landscaping Business in New Mexico
• How to Become a Private Investigator in New Mexico

← Back to all New Mexico business guides

Frequently Asked Questions

How many hours of training do I need to become a cosmetologist in New Mexico?

New Mexico requires 1,600 hours of training at a licensed cosmetology school. You must be at least 17 years old and have completed the equivalent of 10th grade (second year of high school). After completing your hours, you must pass both a theory and practical examination with a minimum score of 70%.

How often does a cosmetology license need to be renewed in New Mexico?

New Mexico cosmetology licenses renew annually on your birthday. The renewal fee is $50. There is no continuing education requirement for licensed cosmetologists (only for instructors). If you miss your birthday renewal date, a $40 late fee applies. Contact the Board at 505-476-4622.

Do I need a separate establishment permit to open a salon?

Yes. In addition to your individual cosmetology license, the physical salon location must hold an establishment permit from the NM Board of Barbers and Cosmetologists. The Board will inspect your premises before issuing the permit. Every stylist working in your salon must also hold a current individual license.

Can I rent a booth in a salon rather than opening my own?

Yes, booth rental is common in New Mexico. As a booth renter, you must hold your own active cosmetology license. The salon owner (permit holder) is responsible for maintaining the establishment permit and ensuring the facility meets Board requirements. Your individual license must be current before you can rent a booth.

Are salon services taxable in New Mexico?

Yes. Cosmetology services (haircuts, coloring, styling, etc.) are taxable under New Mexico’s Gross Receipts Tax (GRT). Unlike some states that exempt personal services, New Mexico’s GRT applies broadly to services. Register for a GRT permit through TRD’s TAP portal before opening. Product sales are also subject to GRT.

Does New Mexico have a reciprocal cosmetology license for out-of-state practitioners?

Yes. New Mexico offers license reciprocity for cosmetologists who hold a current, active license in another state, provided that state has substantially equivalent training requirements. Apply for licensure by endorsement through the NM Board of Barbers and Cosmetologists. The fee is the same as the initial license ($50). Contact the Board at 505-476-4622 to verify your state’s eligibility.