5 Must-Know Tax Deductions for Wellness Businesses

You've spent the year investing in your wellness business, your team, and its growth. While tax deductions can be overwhelming for spa owners, massage therapists, physical therapy practices, and wellness centers, many everyday operating expenses are deductible. If a cost is ordinary, necessary, and essential to your operations, it could help lower your taxable income. 

Five must-know tax deductions for wellness businesses:

To help you prepare for tax season, identify potential savings, and stay aligned with IRS guidelines, we've compiled a list of the most common and impactful tax deductions for wellness businesses. 

1. Furniture and equipment expenses

Furniture and equipment are essential to delivering services in any wellness business, and many of these purchases may be deductible. This includes treatment-room essentials such as massage tables, therapy beds, chairs, facial steamers, hydrotherapy tubs, saunas, and other specialized treatment devices. 

Waiting room furnishings, including seating, desks, shelving, and décor, may also qualify if they're used exclusively for business purposes. 

In some cases, larger purchases may be depreciated over time or written off in the year they are placed into service, depending on their classification. Keeping clear records of purchase dates, costs, and business use is key to accurately claiming these deductions. 

2. Clinic and treatment supplies expenses

Wellness businesses rely on a steady supply of consumable items to serve clients, and many of these everyday expenses are commonly deductible. This includes treatment supplies such as massage oils, creams, gels, wraps, linens, gloves, and sanitation products, as well as vitamins or therapeutic products used during sessions. 

In addition to treatment-room essentials, many front-of-house and client experience items can be deductible as ordinary business expenses. Waiting room amenities such as magazines, plants, refreshments like coffee or water, and other comfort-focused supplies may qualify when they support your day-to-day operations and enhance the client experience. 

3. Employee expenses

Staffing expenses are often one of the largest investments wellness businesses make, and many of these costs may be deductible. This includes employee wages, salaries, commissions, and bonuses, as well as employer-paid benefits such as health insurance contributions, retirement plans, and payroll taxes. Costs associated with hiring, onboarding, and training employees may also qualify when they're directly tied to business operations. 

Payments to independent contractors, consultants, or specialized professionals, such as therapists, bookkeepers, and marketing consultants, may be deductible as well, provided they're hired to support your business and meet IRS classification requirements. 

Additionally, if your business requires specific work attire, it may also qualify as a deductible expense. Uniforms, scrubs, or branded attire that employees are required to wear and that aren't suitable for everyday use may be deductible, along with related costs for cleaning, laundering, or maintenance. 

4. Rent, utilities, and facility expenses

Many of the expenses associated with maintaining your wellness business space may be deductible. This can include rent or lease payments for your studio, clinic, or spa, as well as utilities such as electricity, water, and gas. Internet service and phone systems used for scheduling, client communication, and day-to-day operations may also qualify. 

Additional facility-related expenses, including janitorial services, laundry services, waste removal, and routine maintenance or repairs, can often be deducted when they're necessary to keep your business clean, safe, and operational. In some cases, property insurance, security systems, and minor improvements required to maintain the space may also be eligible. 

5. Software and business technology expenses

If your business relies on software and technology to manage day-to-day operations, many of these costs may be deductible. This includes platforms used for appointment scheduling, client management, staff management, payroll processing, payments, and communications. Accounting software, point-of-sale systems, and marketing tools used for email or SMS outreach may also qualify as ordinary business expenses. 

In addition to software subscriptions, certain technology-related hardware may be deductible as well. This can include computers, tablets, smartphones, printers, and other devices used primarily for business purposes.  

Plan ahead for tax season

Maintaining clean, organized books throughout the year—combined with a clear understanding of which expenses are deductible—makes tax preparation less stressful. It also helps wellness business owners make more informed financial decisions and avoid missing potential savings. 

If you're unsure how to categorize certain expenses or want added confidence when filing, working with a qualified tax professional can help ensure accuracy and compliance. 

This information contained herein does not constitute financial, legal, or other professional advice and is meant to be used solely for informational purposes. It does not take into account your specific circumstances and should be not acted on without full understanding of your current situation, future goals and/or objectives by a qualified professional. Mindbody and Bench assume no liability for actions taken in reliance upon the information contained herein.