How to Start a Hair Salon in Tennessee (2026)

Last updated: May 4, 2026

Tennessee licenses cosmetology under T.C.A. § 62-4-101 et seq. through the TDCI Board of Cosmetology and Barber Examiners. The license structure has Tennessee-specific quirks worth understanding before you choose your training program. Cosmetologists train 1,500 hours – on the lower side compared to states like Colorado (1,800), Iowa (2,100), or South Dakota (2,100), and identical to Texas, Georgia, and most southern states. Estheticians train 750 hours, manicurists 600 hours. Tennessee uses the term “aesthetician” in regulation but accepts “esthetician” interchangeably. There is a separate Master Barber license at 1,500 hours with overlapping but distinct scope from cosmetology.

The most distinctive Tennessee feature is the Hair Braider registration at $30 with a 16-hour health and hygiene course – not a full license, not deregulation, but a middle-path registration system. This is far below the 1,500 hours required if hair braiding fell under cosmetology. Tennessee has not fully exempted hair braiders the way Texas and 30+ other states have, but the 16-hour pathway is far less burdensome than full licensure. Tennessee also does not require continuing education for routine license renewal, which puts it in the minority of states – cosmetologists, estheticians, manicurists, and natural hair stylists pay $60 every two years and complete no CE.

For shop owners, Tennessee requires a separate Cosmetology Shop License for each location, on top of the individual licenses held by you and your operators. Salon services are not subject to Tennessee sales tax, but retail products sold to customers are at the combined state-and-local rate (~9.25-9.75% in Tennessee’s major metros). Get this distinction right in your POS configuration from day one.

This guide covers the Tennessee-specific rules: license pathways and hours, the shop license, hair braider registration, sales tax on retail vs services, and the city-level layer in Nashville, Memphis, Knoxville, and Chattanooga.

Salon Requirements in Tennessee at a Glance

Requirement	Agency / Detail	Cost	Timeline
Cosmetology license (1,500 hours)	TDCI Board of Cosmetology and Barber Examiners	$60 biennial renewal; ~$50-$100 application + issuance	9-12 months training + exam + license issuance
Esthetician/Aesthetician license (750 hours)	TDCI Board of Cosmetology	$60 biennial renewal; ~$50-$100 application	5-6 months training + exam
Manicurist license (600 hours)	TDCI Board of Cosmetology	$60 biennial renewal	3-4 months training + exam
Master Barber license (1,500 hours)	TDCI Board of Cosmetology	$60 biennial renewal	9-12 months training + exam
Natural Hair Stylist license	TDCI Board of Cosmetology	$60 biennial renewal	Specialty pathway – hours per current rule
Hair Braider registration	TDCI Board of Cosmetology	$30 initial registration; 16-hour health and hygiene course	Course can be online; same-week registration possible
Cosmetology Shop License (per location)	TDCI Board of Cosmetology	~$50-$100 initial; biennial renewal	2-4 weeks after facility ready and inspection
PSI written + practical cosmetology exam	PSI Examination Services	~$130-$170 combined	Schedule after completing required hours
LLC formation	TN Secretary of State (TNCaB)	$50/member, $300 min, $3,000 max	Same-business-day approval
Sales tax registration (retail products only)	TN Department of Revenue (TNTAP)	Free	Required before selling retail products
Workers’ compensation (5+ employees)	Private carrier	~0.6-1.5% of payroll (NCCI 9586)	Required at 5+ employees (non-construction threshold)

How to Start a Salon in Tennessee (Step by Step)

Step 1: Pick the Right Tennessee License Path for Your Services

Tennessee’s TDCI Board licenses six main individual categories with distinct scopes:

License Type	Hours Required	Scope
Cosmetologist	1,500	Hair, skin, nails – full scope; the broadest license
Master Barber	1,500	Hair, beard, shaving – barbering scope; distinct from cosmetology
Aesthetician (Esthetician)	750	Skin care, facials, waxing, makeup, body treatments – no hair
Manicurist	600	Nail services, pedicures, manicures, basic nail art
Natural Hair Stylist	Per current rule	Natural hair services – intermediate between hair braider and cosmetologist
Hair Braider (Registered)	16 hours health/hygiene	Braiding only; $30 registration, not a license

If you plan to operate a full-service salon offering hair, skin, and nails, you need cosmetologist licensure (or a team of specialists with the right combination). If your service mix is narrower, lower-hours specialty licenses are faster and cheaper to obtain.

Step 2: Complete Required Hours at a TDCI-Licensed School

Tennessee cosmetology and barber schools must hold their own TDCI school license. Major schools include:

• Empire Beauty Schools (multiple Tennessee locations including Nashville, Knoxville, Memphis)
• Aveda Institute Nashville (Cool Springs and Nashville)
• Tennessee School of Beauty (Knoxville)
• The Salon Professional Academy (Knoxville and other locations)
• Sage Beauty Academy (Memphis)
• Tennessee Colleges of Applied Technology (TCATs) – lower-cost cosmetology programs in Nashville, Memphis, Murfreesboro, Knoxville, Chattanooga, Jackson, and other regional centers

Tuition ranges from approximately $8,000-$15,000 at TCAT cosmetology programs (often eligible for Tennessee Promise / Reconnect grants) up to $20,000-$30,000+ at private beauty schools. Full-time cosmetology programs typically run 9-12 months; esthetics 5-6 months; manicuring 3-4 months.

For Tennessee Reconnect-eligible adults, TCAT cosmetology can be completed at near-zero net tuition cost – a meaningful advantage Tennessee offers over neighboring states without comparable state grant programs.

Step 3: Pass the PSI Cosmetology Exam

Tennessee uses PSI Examination Services for both written and practical cosmetology exams. The combined fee runs approximately $130-$170. Exam locations include Nashville, Memphis, Knoxville, Chattanooga, and Jackson.

• Written exam: ~110 multiple-choice questions covering infection control, scientific concepts, hair structure and chemistry, skin and nail anatomy, Tennessee laws and rules, and salon business basics. Time limit ~150 minutes.
• Practical exam: Proctored hands-on skills demonstration including blood spill management, sanitation procedures, and select hair, skin, or nail services. Bring your own kit.

Pass rates run 75-85% on first attempt for graduates of accredited programs. Retakes are scheduled through PSI; each retake requires payment of the exam fee.

Step 4: Apply for Your TDCI Individual License

Apply through the Tennessee Board of Cosmetology and Barber Examiners using the appropriate license category form. Submit:

• Completed application
• School transcript showing required hours completed
• PSI exam pass results (written and practical)
• Application fee + license issuance fee (combined approximately $50-$100 depending on license type)
• Photograph (some forms)

Tennessee licenses are valid for two years with a renewal fee of $60 for cosmetologist, aesthetician, manicurist, or natural hair stylist. Tennessee does not require continuing education for routine renewal – one of fewer than 10 states without CE for cosmetology. Renew online through the TDCI license portal at the Customer Service Center.

Step 5: Form Your Tennessee Salon Business

File Articles of Organization through TNCaB at sos.tn.gov for $300 minimum (single-member LLC). Get your EIN at IRS.gov.

Register for Tennessee Franchise and Excise Tax (F&E) through TNTAP. Even though salon services are not subject to sales tax, your salon LLC pays:

• 6.5% excise tax on net earnings (with $50,000 deduction since 12/31/2024)
• 0.25% franchise tax on the greater of net worth or property value (minimum $100; first $500,000 of property excluded since 12/31/2024)

Single-member salon LLCs treated as disregarded entities federally still file F&E in Tennessee.

Step 6: Get Your Cosmetology Shop License

Tennessee requires a separate TDCI Cosmetology Shop License for each location. The shop license is location-specific – operating multiple locations requires multiple shop licenses. Application requirements typically include:

• Facility floor plan showing styling stations, shampoo bowls, dispensary, restrooms
• Sanitation procedures documented (autoclave or barbicide for metal tools; disposable items for porous tools)
• Hot water supply at all wash points (108-115°F minimum at point of use)
• Adequate ventilation, especially for chemical services (color, perms, relaxers, acrylic nails)
• Designated Shop Manager who holds active Tennessee cosmetology license
• License fee (~$50-$100 initial + biennial renewal)

The TDCI may inspect the shop before issuing the license. Plan for a 2-4 week review window after facility readiness.

Step 7: Configure Sales Tax Correctly (Services Exempt, Products Taxable)

Tennessee sales tax treatment for salons:

• Services NOT taxed: Haircuts, color, perms, styling, blowouts, facials, waxing, manicures, pedicures, eyebrow services, makeup application as a service. Service revenue is reported as gross income for F&E and local business tax purposes but not for sales tax.
• Retail products TAXED at combined rate: Shampoo, conditioner, styling products, hair accessories, nail polish sold to customers, skincare products. Tax rate is the combined state (7%) plus local (up to 2.75%) – approximately 9.25-9.75% in Nashville, Memphis, Knoxville, Chattanooga.
• “Service supplies” used in providing services: The salon pays sales tax on these at purchase from suppliers (CosmoProf, Salon Centric); they are not re-charged to customers as taxed line items.

Configure your POS (Square, Vagaro, GlossGenius, or similar) to mark service line items as non-taxable and retail product line items as taxable. This is the single most common source of audit exposure for new Tennessee salons – get it right at setup.

Step 8: Get Local Business Licenses and Pass Local Inspections

Nashville

Nashville’s consolidated Metro government means a single Standard Business License (or Minimal Activity License) covers both city and county. File through Davidson County Clerk. Salons typically need zoning approval as a “Personal Service Establishment” or similar use category; verify with the Metro Planning Department before signing a lease in mixed-use or transitional zones.

Memphis

Memphis requires both a Memphis city business license and a Shelby County business license. Salon zoning typically falls under “Personal Services” in commercial zones. Memphis’s older retail building stock often requires utility upgrades to support multiple shampoo bowls (water pressure, electrical for blow dryers).

Knoxville

Knoxville requires both a city of Knoxville business license and a Knox County business license. The University of Tennessee adjacent neighborhoods (Cumberland Avenue, Fort Sanders) generate strong demand for student-oriented salons.

Chattanooga

Chattanooga requires city and Hamilton County registrations. North Shore (NorthShore) and Southside neighborhoods support a growing boutique salon market.

Tennessee Salon Market Context

• Nashville is a national salon industry market. Nashville’s profile as the “Music City” and a destination for events (CMA Fest, bachelorette tourism) supports a high concentration of upmarket salons. Belle Meade, Green Hills, 12 South, East Nashville, and The Gulch each have distinct salon ecosystems. Nashville hosts multiple major hair-industry events including CMA Fest hair trends, and the city’s photography and entertainment industry generates steady demand for celebrity and editorial work.
• Memphis’s African American hair care market is one of the largest in the South. Specialty salons focused on natural hair, braiding, locs, and extensions have a strong base in Memphis. The Hair Braider registration’s $30/16-hour pathway makes it possible to operate legally with dramatically lower training cost than full cosmetology – a real advantage for the niche.
• Knoxville/Oak Ridge market. University of Tennessee student traffic, Oak Ridge National Laboratory professional services, and Sevier County tourism (~12 million Great Smoky Mountains visitors/year) generate steady demand. Many Pigeon Forge and Gatlinburg short-term rental properties drive their guests to nearby salons for vacation pampering.
• Chattanooga’s small-format boutique trend. Chattanooga’s revitalized Southside and North Shore have supported a wave of small (1-3 chair) boutique salons. Booth rental arrangements are common – operators rent stations for $200-$400/week from established shop owners rather than running their own location.
• Murfreesboro, Franklin, and Brentwood (Williamson County). Affluent suburbs with high household income support upscale salon pricing and strong retail product attach rates.

Cost to Start a Salon in Tennessee

Cost Category	Booth Rental in Existing Salon	Standalone 4-Chair Salon
Cosmetology school tuition	$8,000-$25,000 (one-time)	$8,000-$25,000 (one-time)
PSI exam (written + practical)	$130-$170	$130-$170
TDCI individual license + first renewal	~$50-$100 + $60 every 2 years	~$50-$100 + $60 every 2 years
LLC formation	$300	$300
TDCI Cosmetology Shop License	N/A (booth renter)	~$50-$100 initial + biennial renewal
Booth rental (annual)	$10,000-$20,000/year	N/A
Lease + buildout	$0	$30,000-$80,000 (rent + improvements)
Equipment (chairs, bowls, dryers, dispensary)	$500-$2,000 (kit only)	$15,000-$40,000
Initial inventory (color, retail products)	$1,000-$3,000	$5,000-$15,000
Insurance (general liability + professional)	$300-$700/yr (apprentice/individual)	$1,200-$3,500/yr
City/county business license + first-year tax	$50-$200	$100-$500
Approximate total Year 1 (excluding tuition)	$12,000-$26,000	$55,000-$145,000

Related Tennessee Business Guides

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Frequently Asked Questions

How many hours of cosmetology school does Tennessee require?

Tennessee requires 1,500 hours of cosmetology training at a TDCI-licensed school – on the lower end nationally (Colorado, Iowa, and South Dakota require more). Specialty hours: 750 for aesthetician/esthetician, 600 for manicurist, 1,500 for master barber. Hair braiders register through a separate $30 / 16-hour course pathway, not full cosmetology. After completing required hours, you sit for the PSI written and practical cosmetology exam, then apply for your TDCI individual license. Tennessee licenses renew biennially at $60 with no continuing education required for routine renewal.

Do hair braiders need a cosmetology license in Tennessee?

No – Tennessee created a separate Hair Braider Registration with a $30 registration fee and a 16-hour health and hygiene course. Braiders do not need 1,500 hours of cosmetology training. The course can be completed online or in-person and registration is processed quickly through the TDCI Board of Cosmetology and Barber Examiners. Tennessee has not fully deregulated hair braiding the way Texas and 30+ other states have, but the 16-hour pathway makes legal operation realistic for braiders. The registration scope is braiding only – any chemical service, cutting, or other cosmetology work requires a different license.

Are salon services subject to Tennessee sales tax?

No, salon services are not subject to Tennessee sales tax. Haircuts, color, perms, styling, blowouts, facials, waxing, manicures, and pedicures are all exempt because services are not enumerated as taxable in Tennessee statute (with limited exceptions like cleaning of personal property or laundry). However, retail products sold to customers are subject to combined sales tax – approximately 9.25-9.75% in Nashville, Memphis, Knoxville, and Chattanooga. Configure your POS to apply tax to retail items only, not to service line items. This is the most common audit exposure for new Tennessee salons.

Does Tennessee require continuing education for cosmetology renewal?

No. Tennessee is one of fewer than 10 states that does not require continuing education for routine cosmetology, esthetician, or manicurist license renewal. Renewal is straightforward: pay $60 every two years through the TDCI license portal. Some specialty certifications (instructor, master cosmetologist) may have CE requirements; verify your specific category. The lack of CE means Tennessee salons need to invest in voluntary professional development to keep up with current techniques and product chemistry – it’s not a license-imposed requirement, but a market necessity.

Do I need a separate Cosmetology Shop License if I have my individual license?

Yes. Tennessee requires a separate TDCI Cosmetology Shop License for every salon location, in addition to the individual licenses held by the owner and operators. The shop license requires facility plan review, sanitation compliance (autoclave or barbicide for tools), adequate hot water and ventilation, and a designated Shop Manager who holds an active Tennessee cosmetology license. Each location needs its own shop license – operating multiple salons means multiple shop licenses. Initial fee is approximately $50-$100 with biennial renewal.

Does Tennessee require workers’ comp for a small salon?

Salon work is non-construction, so Tennessee’s general workers’ comp threshold of 5 or more employees under T.C.A. § 50-6 applies. Salons with 1-4 employees are not required to carry workers’ comp. Once you cross the 5-employee threshold (counting working family members and part-timers), workers’ comp becomes mandatory. Salon class codes (NCCI 9586) are among the lowest workers’ comp rates in any industry – typically 0.6-1.5% of payroll. Many Tennessee salons carry workers’ comp voluntarily even below the threshold because the cost is low and the protection meaningful.

Can I operate a booth rental salon in Tennessee?

Yes. Booth rental is common in Tennessee. The shop owner holds the Cosmetology Shop License and rents stations to individually licensed operators. Rental rates run $150-$500/week depending on location and amenities. Booth renters operate as independent contractors (not employees) – they collect their own service revenue, set their own hours, manage their own client books, and file their own taxes. Both the shop owner and the booth renter need to be careful about misclassification – Tennessee aggressively audits booth-rental relationships that look more like employment, particularly if the shop owner controls scheduling, supplies, or pricing. A clear booth-rental agreement protects both sides.