Tattoo Artists · Edmonton
Tattoo shop taxes in Alberta, sorted.
For Edmonton-area shop owners: how chair renters and employees change your taxes, where GST applies, and the records that protect you if CRA ever asks.
By the Plum team- Updated Oct 2026
- 7 min read
- Chair renters and employees are taxed very differently. The real working relationship decides which one you have.
- If you're GST-registered, charge 5% GST on chair rent and services.
- Write down every artist arrangement, and make sure day-to-day practice matches it.
- Employees mean payroll: CPP, EI, income tax, WCB and T4s.
- Give every artist a clear monthly statement.
Owning a tattoo shop is a different job from tattooing. Suddenly you're renting chairs to some artists, employing others, selling aftercare products and collecting GST. Getting tattoo shop taxes in Alberta right starts with one question: how do your artists actually work with you?
This guide is for shop owners in Edmonton and around the region, from Old Strathcona and Downtown to Sherwood Park, St. Albert and Spruce Grove.
1Chair renters, commission and employees
Most shops use one of three setups, sometimes a mix of all three:
| Chair renter | Commission | Employee | |
|---|---|---|---|
| Who the client pays | The artist | Usually the shop | The shop |
| Shop's income | Rent from artists | Its share of each tattoo | All tattoo sales |
| Who buys supplies | Artist | Varies | Shop |
| Payroll deductions | None | Depends on status | CPP, EI, tax |
| WCB | Artist's own matter | Depends on status | Shop's account |
Chair rental is often simplest for the shop's books: you receive rent, charge GST if registered, and the artists run their own businesses. Commission setups need the most care, because money flows through the shop before it reaches the artist.
2Getting worker status right
CRA doesn't care what your agreement calls someone. It looks at the actual relationship. The questions it considers include:
- Control: who sets the hours, prices and how the work is done?
- Tools and supplies: who owns the machines and buys the ink and needles?
- Financial risk: can the artist lose money, for example by paying rent on a slow week?
- Chance of profit: can the artist earn more by building their own clientele and pricing?
- Clients: are they the artist's clients or the shop's?
3GST and tattoo shop taxes in Alberta
Alberta has no PST, so GST at 5% is the only sales tax you deal with. Once the shop's taxable sales pass $30,000 over four consecutive calendar quarters, or in a single quarter, you must register. Here's where it applies:
- Chair or booth rent you charge artists is generally taxable.
- Tattoo and piercing services the shop sells directly are taxable.
- Aftercare products, merch and gift cards: products are taxable when sold. Gift cards generally aren't taxed when sold; GST applies when they're redeemed.
- Your shop rent, supplies and equipment come with GST you can usually claim back as input tax credits.
Chair renters each have their own GST threshold, based on their own sales. Some will be registered and some won't, which affects whether they can claim back the GST you charge them. Our GST registration guide explains the threshold in detail.
4If you have employees
Hiring a front-desk manager or employing artists means running payroll properly. That involves a CRA payroll account, deducting CPP, EI and income tax, paying the employer share, remitting on time and issuing T4s by the end of February. You'll generally also need a WCB-Alberta account; see our guide to WCB for Alberta small businesses.
Apprentices deserve a mention. If an apprentice works under your direction on your schedule, they often look like an employee, even if they're paid modestly. Get that one right from day one.
Some shops run a mix: a couple of long-time artists renting chairs, a manager on payroll and a guest artist on commission for a few weeks. That's fine, but each arrangement needs its own paperwork and its own treatment in your books. Set up separate income accounts for chair rent and commission, and a separate payroll expense, so your financial statements show where the shop's money really comes from.
5The records every shop owner should have
CRA generally expects you to keep records for six years. For a tattoo shop, that means more than just bank statements:
Store these somewhere safe and organized (digital is fine), and back them up. A box of paper in the back room isn't much help if a pipe bursts.
Monthly artist statements are the most underrated item on that list. A simple statement showing rent charged, GST and payments received settles disputes quickly and gives you a clean trail if questions ever come up.
6Mistakes shop owners make
Most tax problems in tattoo shops come from a handful of habits that seem harmless at the time:
- Collecting client payments for chair renters. If every payment runs through the shop's Square, the shop can look like the artist's employer, and your sales reports will include money that isn't yours. If you do collect for artists, record it as money held for them and pay it out with clear statements.
- Not charging GST on chair rent after the shop registers.
- Letting rent arrears pile up with no record of what each artist owes.
- Treating apprentices as unpaid or as contractors without checking how CRA would see the arrangement.
- Selling gift cards without tracking them, so you can't tell which ones have been redeemed.
Shop-issued gift cards deserve their own system. When you sell one, record it as a liability, not a sale. When it's redeemed, it becomes revenue, and GST applies at that point if you're registered. A simple gift card list, or the tracking built into Square, makes it easy.
Deposits the shop takes on behalf of employed artists work in a similar way: hold them as a liability until the session happens, then move them into sales.
Setting up your books for a shop
A tattoo shop's chart of accounts should separate chair rent income, service sales, retail sales, supplies, payroll and artist payouts. In QuickBooks Online or Xero, that structure makes GST filing and year-end much faster, and it tells you which part of the shop is actually profitable.
Plum works with tattoo shops and artists across Edmonton, Sherwood Park, St. Albert and Spruce Grove on flat monthly fees. If you'd like to talk through your setup, book a quick call.
7Questions people ask
Should my tattoo artists be chair renters or employees?
It depends on how the relationship actually works. Artists who set their own prices, book their own clients, buy their own supplies and pay you rent usually look self-employed. If you control their schedule, pricing and clients, CRA may see them as employees.
Do I charge GST on chair rent in Alberta?
If your shop is GST-registered, chair or booth rent you charge artists is generally taxable at 5%. Artists who are registered themselves can usually claim that GST back.
What records should a tattoo shop owner keep?
Hold onto written chair rental or commission agreements, monthly rent or commission statements, sales records from your payment system, supplier invoices, payroll records and any T4 or T4A slips. CRA generally expects records to be kept for six years.
Do I need to issue T4A slips to chair renters?
Chair renters who pay you rent generally don't receive slips from you, because you aren't paying them. If your shop collects client payments and passes money on to artists, the reporting can be different, so check with your accountant.
How are commission-based tattoo artists taxed?
If artists keep a percentage and the shop keeps the rest, how you record it depends on who the client is paying and whether the artists are self-employed or employees. Get the setup confirmed before you start, not after a year of mixed records.
Want this off your plate?
Flat-fee bookkeeping for tattoo artists. Month to month, no surprises.
Book a free 15-min callThis article is general information for Alberta businesses and isn't tax or legal advice. Rules and thresholds change, so confirm your situation with your accountant or CRA.