Compliance · Industry Guide

By File720Online Editorial Team · April 17, 2026

Indoor Tanning Tax: How to Report It on Form 720

If you operate a tanning salon or provide UV tanning services, you are responsible for collecting and remitting the 10% federal indoor tanning services excise tax every quarter. Here is everything you need to know.

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Quick Answer

Tanning salons must collect a 10% excise tax from customers on UV tanning sessions and remit it quarterly on Form 720. Spray tanning and medical phototherapy are not taxable. The tax applies to the gross amount paid for each tanning service.

What Tanning Services Are Taxable?

The indoor tanning tax applies to any service where a person pays to use equipment that emits ultraviolet radiation for tanning. This includes:

Taxable Services (10% tax applies)

  • ✗ UV tanning beds
  • ✗ UV tanning booths
  • ✗ Stand-up tanning units
  • ✗ UV sunlamps at tanning facilities
  • ✗ Tanning packages and memberships (pro-rated per session)

Non-Taxable Services (no tax)

  • ✓ Spray tanning (no UV)
  • ✓ Airbrush tanning
  • ✓ Self-tanning products
  • ✓ Medical phototherapy (licensed professional)
  • ✓ Fitness facility tanning (incidental service only)

How to Calculate the Indoor Tanning Tax

The tax is 10% of the amount paid for each taxable tanning service. Here are examples:

Scenario
Single tanning session: $20
Tax Amount
$2.00 (10% of $20)
Collect From Customer
$22.00 total from customer
Scenario
Monthly unlimited package: $60
Tax Amount
$6.00 (10% of $60)
Collect From Customer
$66.00 total from customer
Scenario
10-session tanning package: $90
Tax Amount
$9.00 (10% of $90)
Collect From Customer
$99.00 total from customer

At the end of each quarter, total all amounts paid for taxable tanning services. Multiply by 10% to get the excise tax owed. Report this on Form 720, Schedule I, Part II.

Recordkeeping Requirements

Tanning salon operators must maintain records sufficient to support the amounts reported on Form 720. This includes daily transaction records showing the amount charged for each tanning session, records of any exempt services provided, and records of deposits and payments made.

The IRS recommends retaining excise tax records for at least 3 years from the date the return was filed (or 7 years if you have capital loss carry-overs). File720Online retains your filing records for 7 years.

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Frequently Asked Questions

What is the indoor tanning services excise tax?
The indoor tanning services excise tax is a 10% federal excise tax on the amount paid for indoor tanning services that use ultraviolet (UV) lamps. It was enacted by the Affordable Care Act in 2010 and is reported on Form 720. The tax is paid by the customer at the time of service but collected and remitted to the IRS by the tanning service provider.
What types of tanning services are taxable?
The tax applies to services where customers are exposed to UV radiation for the purpose of tanning. This includes tanning beds, tanning booths, and sunlamps used in tanning salons. Services that do not use UV radiation — such as spray tanning, self-tanning products, and phototherapy services prescribed by a licensed medical professional — are not subject to the tax.
Are there any exemptions from the indoor tanning tax?
Yes. The IRS recognizes two exemptions: (1) phototherapy services performed by a licensed medical professional, and (2) physical fitness facilities where tanning is an ancillary, incidental service (a facility primarily engaged in providing physical fitness services where tanning is only a minor part of the overall service offering). Standard tanning salons do not qualify for the fitness facility exemption.
How do I calculate the indoor tanning tax?
The tax is 10% of the amount paid for each taxable tanning session or package. For example, if a customer pays $20 for a tanning session, the excise tax is $2 (10% of $20). If the customer pays for a monthly unlimited package of $60, the tax is $6. You collect the tax from the customer at the point of sale and remit it quarterly on Form 720.
Where on Form 720 is the indoor tanning tax reported?
The indoor tanning services excise tax is reported on Schedule I, Part II, Line 20b of Form 720. You enter the total amount paid for tanning services during the quarter, and the 10% tax is calculated on that amount. The quarterly return is due April 30, July 31, October 31, and January 31.

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Disclaimer: The information provided in this article is for general informational purposes only and should not be relied upon as legal, tax, or professional advice. Tax laws and regulations are subject to change, and their application can vary based on individual circumstances. Consult a qualified tax professional or attorney for advice specific to your situation. File720Online is an IRS-authorized e-file provider and does not provide legal or tax advice.