Why Is There a Tanning Tax?
There is a tanning tax because Congress wrote one into the Patient Protection and Affordable Care Act in 2010. Section 10907 of that law added section 5000B to the Internal Revenue Code, which puts a 10 percent tax on indoor tanning services. The more interesting part is that it was a replacement. The same law first created a tax on cosmetic surgery, then cancelled it in favor of the tan tax.
What the legal text doesn't give is a reason. People often say the federal tanning tax exists because of health concerns. That may reflect what some lawmakers thought, but neither the statute nor the IRS regulation we read says so, and we won't guess at it here. Below is what the documents themselves show, and what applies to you today.
The swap inside the 2010 law
Public Law 111-148 contains two versions of section 5000B, and reading them side by side tells most of the story.
| Section 9017 | Section 10907 | |
|---|---|---|
| Taxed what | Cosmetic surgery and medical procedures | Indoor tanning services |
| Rate | 5 percent of the amount paid | 10 percent of the amount paid |
| New chapter name | Elective Cosmetic Medical Procedures | Cosmetic Services |
| Status | Deemed "null, void, and of no effect" by section 10907(a) | Enacted |
Section 10907's own heading sums it up: "Excise Tax on Indoor Tanning Services in Lieu of Elective Cosmetic Medical Procedures." So when you ask why tanning, one answer the law itself supports is that it stood in for another cosmetic tax that was dropped. The chapter it sits in is still called Cosmetic Services, which tells you how the drafters categorized it. Neither section explains why the change was made.
How the tax developed after 2010
| Date | What happened | Source |
|---|---|---|
| March 23, 2010 | Public Law 111-148 enacted | Public Law 111-148 |
| June 15, 2010 | Temporary and proposed regulations published | T.D. 9621 preamble |
| July 1, 2010 | Tax applies to services performed on or after this date | Section 10907(d) |
| October 11, 2011 | Public hearing on the proposed regulations | T.D. 9621 preamble |
| June 11, 2013 | Final regulation applies to amounts paid on or after this date | Regulations section 49.5000B-1(h) |
| June 26, 2014 | Final rules on disregarded entities take effect, including for this tax | T.D. 9670 |
The final regulation's preamble is the closest thing in the IRS material to reasoning, and it's about mechanics. The IRS explains there that the fitness facility exception doesn't appear in section 5000B, and that commenters called it unfair to other providers. The IRS kept it. It said tanning is incidental at those facilities, and that splitting monthly fees would be burdensome and hard to administer. For that exception and the medical one, see our post on tanning tax exemptions.
Why does the salon collect it, if the customer owes it?
That design is in the statute. Section 5000B(c) says the tax is paid by the individual on whom the service is performed, and that everyone receiving a payment for the service must collect it and remit it quarterly. If it isn't collected, the person performing the service pays it.
The regulation refines one point. For collection purposes, it treats the person who pays as the person on whom the service is performed, so a gift buyer owes the tax. It also says payment by insurance counts as an amount paid. The 2010 statute already said the same about insurance: "whether paid by insurance or otherwise."
What is in force today
Whatever the origin, the tax is on the current form. The June 2026 Form 720 lists "Indoor tanning services" at 10% of the amount paid as IRS No. 140, in Part II. Here is what the current instructions and regulation require:
- Rate: 10% of the amount paid for the service.
- Who pays: the person paying for the service.
- Who files: the person receiving the payment, who is also liable if the tax isn't collected.
- What's out: phototherapy performed by, and on the premises of, a licensed medical professional. Special rules also apply to qualified physical fitness facilities, undesignated payment cards, and bundled payments.
- Payment: with the quarterly return. Pub. 510 says no semimonthly deposits are required.
- Enforcement: tax collected but not paid over can bring the trust fund recovery penalty, equal to the full unpaid tax.
If this tax is now your responsibility
Knowing the history doesn't change the quarterly job. If you run UV beds or booths, the indoor tanning tax guide explains how the tax is reported, and the tanning tax calculator estimates a quarter's amount from your figures.
You can then file the tanning tax online with EasyFile720, which is an IRS-authorized e-file provider for Form 720. It's free to create an account, with no credit card needed to start. You pay when you file, at $39.95 per filing. The filing is guided, and you sign electronically. If you are a customer and not a salon, you have nothing to file. The tax is part of what you pay at the counter.
FAQ
Did the cosmetic surgery tax ever take effect?▼
Section 10907 of the law says the provisions of section 9017, the 5% cosmetic procedures tax, are deemed null, void, and of no effect. That is the same law that created the tanning tax.
Is the tanning tax permanent?▼
Section 10907 as enacted does not include an end date in its text, and the June 2026 Form 720 still lists the tax. Congress can change any tax, so check IRS.gov/Form720 for later developments.
Does the money go to a specific health program?▼
The sections we reviewed impose and collect the tax but do not earmark the money for a named program. We did not trace the budget treatment, so we cannot say more than that.
Did the tax rate ever change?▼
The 2010 law set 10 percent, the 2013 regulation examples use 10 percent, and the June 2026 Form 720 shows 10 percent. The rate shown has been the same in each document we checked.
File the indoor tanning tax online
Create a free account with no credit card and build your return. You pay $39.95 only when you file. EasyFile720 is an IRS-authorized e-file provider, and you get an acknowledgment when the IRS accepts your return.
Sources: Public Law 111-148, sections 9017 and 10907 (congress.gov); Regulations section 49.5000B-1, T.D. 9621, 2013-28 I.R.B.; T.D. 9670, 2014-29 I.R.B.; Form 720 (Rev. June 2026); Instructions for Form 720 (Rev. June 2026); Pub. 510 (Rev. December 2025). General information, not tax advice. Confirm how the rules apply to you with a qualified advisor or the IRS.
