Cosmetologists

Cosmetologists can make a decent living in the beauty/hair care industry, but as in most careers, they don't receive very high pay when starting out. The U.S. Department of Labor reports that cosmetologists working full time had an annual median income of $34,970 (excluding tips) in May 2023. The top 10 percent earned $63,110 or more and the lowest 10 percent earned less than $23,520 in that same year. On the extreme upward end of the pay scale, some fashion stylists in New York or Hollywood charge $300 (or more) per haircut. Their annual salary can go into six figures. Salaries in larger cities are greater than those in smaller towns; but then the cost of living is higher in the big cities, too.

Most shops and salons give a new employee a guaranteed income instead of commission. If the employee goes over the guaranteed amount, then he or she earns a commission. Usually, this guarantee will extend for the first three months of employment, so that the new stylist can focus on building up business before going on straight commission.

In addition, most salon owners grant incentives for product sales; and, of course, there are always tips. However, true professionals never depend on their tips. All tips must be recorded and reported to the Internal Revenue Service.

The benefits a cosmetologist receives, such as health insurance and retirement plans, depend on the place of employment. A small independent salon cannot afford to supply a hefty benefit package, but a large shop or salon or a member of a chain can be more generous. However, some of the professional associations and organizations offer benefit packages at reasonable rates.