Hairdressing services have been charged VAT at 9% rather than 13.5% since 1 July 2026, and the reduced rate runs to 31 December 2030 under the Finance Act 2025, according to accountancy firm Crowe Ireland. The relief arrives as salons head into the busiest six weeks of the year, and three months before the national minimum wage rises to €14.94 an hour on 1 January 2027.

The VAT cut: what it covers

The 9% rate applies to hairdressing services, restaurant and catering services and hot takeaway food, Crowe's guide confirms. Beauty treatments such as nails, lashes, waxing, tanning and facials are not on that list, so a salon that offers both hair and beauty charges two different VAT rates.

The cut was announced in Budget 2026 in October 2025 but, as the Irish Examiner noted on 7 October, was delayed and only took effect on 1 July. It is now the governing rate for every haircut, colour and blow-dry booked for the party season.

Minimum wage and PRSI from January

Budget 2027 raised the national minimum wage by 79 cent to €14.94 an hour from 1 January 2027, the Irish Times budget guide confirms. To offset it, the weekly employer PRSI threshold for the higher rate rises from €552 to €600 for 2027, the Irish Examiner reported on 7 October.

Valerie Finnegan Cahill, who owns Ikon Hair in Cork city and employs 11 people, told the Irish Examiner she had "just got some breathing space" from the VAT cut before the wage rise landed. "You want to pay people well, but I also need to keep the business healthy enough," she said, adding: "There's no margins there anymore." She said the number of "salon owners that are just going under these days is just incredible".

Hairdressing is labour-heavy, so a 5.6% rise in the wage floor feeds directly into prices. Salons that have held prices since July are likely to review them in January.

A 30,000-strong industry chasing qualified staff

More than 30,000 people work in the beauty industry in Ireland, the Irish Times reported on 27 October in a careers feature. The National Hairdressing Apprenticeship, a three-year programme leading to a QQI Level 6 Advanced Certificate, had 723 participants at the end of 2025, up from 94 in 2020; the Department of Further and Higher Education says it is the only national statutory apprenticeship in the beauty-related field. Barbering and beauty apprenticeships at Level 6 are at the validation stage.

Jess Hurley, owner of the Lola Lash business and a lash educator, told the Irish Times the industry has moved towards specialisation in lashes, nails, skin, brows, make-up and semi-permanent make-up, and that there is no single qualification pathway, which she views as under-regulated. Beautician and beauty therapy courses at PLC colleges carry QQI Level 5 and 6 awards and do not require CAO points.

The trade title Professional Beauty Ireland's recent industry news lists the IHF Championships 2026 in Kilkenny, the Irish Hairdressers Federation's Star Team 2027 and the WorldSkills Ireland 2026 hairdressing and beauty therapy competition winners.

The Christmas rush

Office parties, school formals and family gatherings concentrate demand for cuts, colour, blow-dries, nails, lashes and tans into late November and the three weeks before Christmas Day, which falls on a Friday this year. Colour appointments take the longest and are the first to go.

Christmas Eve is a Thursday, so the final working week before the holiday is Monday 21 to Thursday 24 December; check your salon's last appointment day, as opening over the holiday varies. The same squeeze applies to barbers, nail technicians and mobile tanning and lash providers.

What it means for you

Book your Christmas hair now, not in December. Ask for the price including VAT when you book, and if you have a regular colour, book December and January appointments together to beat the January price review. For beauty treatments, remember the 9% rate does not apply, so a nail or lash price has not changed because of the VAT cut. If you cannot get into your usual salon, Locufy lists local hairdressers, barbers, nail technicians and beauty providers by area.

For providers: state your prices with VAT included and say plainly whether a January increase is coming, so clients can rebook before it. Open your December diary now, take deposits for colour and party-night slots, and list your last appointment day before Christmas. If you are hiring, the apprenticeship route gives you a trainee on a structured three-year programme; tell clients which staff are qualified and for what.

Key dates

• 1 July 2026: hairdressing VAT cut from 13.5% to 9% took effect
• Late November to 24 December 2026: party-season peak for hair, nails, lashes and tanning
• 25 December 2026: Christmas Day, a Friday
• 1 January 2027: minimum wage €14.94 an hour; employer PRSI threshold €600 a week
• 31 December 2030: 9% hairdressing VAT rate due to end

Sources

• Crowe Ireland — Hospitality VAT reduction now in effect: What businesses need to know
• Irish Examiner — 'You want to pay people well... It's just the Government is not making it easy these days'
• Irish Times — When budget changes kick in and how to claim them
• Irish Times — Budget 2027 main points
• Irish Times — So you want to work in the beauty industry in Ireland?
• Professional Beauty Ireland — Industry News

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