Tanning Tax Repeal: Federal 10% Excise Tax on Indoor Tanning Services Gets Wiped Out

The Tanning Tax Repeal Act of 2025 is short, sweet, and gets right to the point: it completely eliminates the federal 10% excise tax on indoor tanning services. If you’re running a tanning salon, or if your monthly routine includes a trip to one, this bill is about to make a small but noticeable change to your bottom line. The bill simply strikes Chapter 49 from the Internal Revenue Code, which is the section that created this specific tax. This repeal is prospective, meaning it only applies to services provided after the bill is signed into law. You won't get a refund for that tanning session you paid for last week, but the tax won't be collected on your next one.

The Cost of Doing Business Just Got Lower

For the owners of tanning businesses, this repeal is a straightforward financial break. They no longer have to collect and remit the 10% federal tax on every service. This reduces their administrative burden and, more importantly, lowers the effective price for consumers. Imagine you run a small salon where the average session costs $20. That 10% tax added $2 to the bill. While $2 doesn't sound like much, it adds up quickly for a loyal customer base and, for the business, it's 10% of gross revenue that is now staying in the local economy instead of going to the federal government. This change could mean slightly cheaper services for customers or better margins for the business owner, helping them manage rising costs like rent and utilities.

The Health Question: Trading Tax for Tanning

It’s important to remember why this tax existed in the first place. The 10% levy was originally introduced as a public health measure intended to discourage the use of indoor tanning beds, which are linked to an increased risk of skin cancer. It was essentially a financial disincentive—a way to make the activity slightly more expensive. By removing this tax, the government is taking away that financial nudge designed to steer people away from a known health risk. For public health organizations focused on cancer prevention, this repeal removes one tool they had to discourage the practice, potentially leading to increased usage now that the services are slightly cheaper.

What It Means for Your Wallet and the Feds

If you’re a regular user of indoor tanning services, you should see a small reduction in the price you pay, assuming businesses pass on the full savings. If you spend $50 a month on tanning, you’ll save $5 a month, or $60 a year. It’s not retirement money, but it's real money back in your pocket. On the flip side, the federal government will lose the revenue generated by this tax. While it was never a massive source of income for the Treasury, every repealed tax means less money for federal programs. Ultimately, this bill is a clear win for the tanning industry and its customers, offering tangible economic relief, but it also signals a shift away from using tax policy as a tool to discourage certain activities for public health reasons.