What is the artist commission rate at a tattoo shop?

This article was written by our expert who is surveying the industry and constantly updating the business plan for a tattoo shop.

Who wrote this content?

The Dojo Business Team

A team of financial experts, consultants, and writers

We're a team of finance experts, consultants, market analysts, and specialized writers dedicated to helping new entrepreneurs launch their businesses. We help you avoid costly mistakes by providing detailed business plans, accurate market studies, and reliable financial forecasts to maximize your chances of success from day one—especially in the tattoo shop market.

What percentage of the tattoo fee does the shop typically keep, and what percentage goes to the artist?

In most tattoo shops, the shop retains between 30% and 50% of each tattoo fee, while the artist keeps the remaining 50% to 70%.

This split covers the shop's operational expenses including rent, utilities, insurance, licensing, front desk staff, and general overhead. The shop also typically provides walk-in traffic, marketing support, and maintains the physical space to industry health and safety standards.

The exact percentage depends heavily on the shop's location, reputation, and the services it provides to artists. High-traffic urban tattoo shops with strong brand recognition can justify keeping closer to 50% because they generate substantial walk-in business and provide consistent client flow.

Some established tattoo shops operate on a booth rental model instead, where artists pay a fixed weekly or monthly fee ranging from $100 to $500 and keep 100% of their tattoo earnings. This model shifts financial risk to the artist but offers higher earning potential for those with established clientele.

The commission-based structure is more common for newer tattoo shops or those looking to attract artists without requiring significant upfront investment from the artists themselves.

Is the commission rate the same for all artists in the shop, or does it vary based on experience or seniority?

Commission rates in tattoo shops almost always vary based on artist experience, skill level, and the clientele they bring to the business.

Top-tier artists with strong portfolios, social media followings, and established reputations can negotiate commission rates where they keep 70% to 80% of their tattoo fees. These artists often have waitlists for appointments and generate significant revenue, which gives them leverage in negotiations with shop owners.

Junior artists or those completing apprenticeships typically receive lower commission rates, often in the 30% to 40% range. This lower split reflects their need for mentorship, their developing skill set, and the shop's investment in training and building their reputation.

Mid-level artists with a few years of experience generally fall in the standard 50% to 60% range. As they build their portfolio and client base, they can renegotiate their rates with shop management based on their performance and booking levels.

You'll find detailed market insights on compensation structures in our tattoo shop business plan, updated every quarter.

Does the shop offer a flat commission structure, or does the rate change depending on the price of the tattoo?

Most tattoo shops use a flat percentage commission structure that applies regardless of the tattoo price, but some implement tiered systems that reward higher-value work.

A flat commission structure is simpler to manage and creates consistency for both the shop and artists. Under this model, whether an artist completes a $100 flash tattoo or a $1,000 custom back piece, the same percentage split applies.

Tiered commission structures incentivize artists to book higher-value tattoos by offering better percentages once certain revenue thresholds are reached. For example, an artist might keep 50% on their first $5,000 in monthly revenue, then 60% on revenue between $5,000 and $10,000, and 70% on anything above $10,000.

Some tattoo shops also adjust commission rates for multi-session projects, particularly large custom pieces that require 10 or more hours of work. These adjustments recognize the artist's commitment and the extended client relationship involved in such projects.

Are there differences in commission rates for walk-in clients versus clients booked by the artist?

Is the commission rate affected by the tattoo size, style, or session length?

Commission rates typically remain constant regardless of tattoo size, style, or session length in most tattoo shops, though some shops make exceptions for unusually large or complex projects.

Whether an artist completes a small minimalist design in 30 minutes or a detailed Japanese sleeve over multiple sessions, the standard commission percentage usually applies. This consistency simplifies accounting and prevents disputes about what constitutes a "large" or "complex" tattoo.

However, some tattoo shops adjust commissions for multi-session projects spanning 15 or more hours total work time. These adjustments recognize the artist's extended commitment to a single client and may increase the artist's share by 5% to 10% once certain hour thresholds are met.

Certain styles that require specialized skills—such as hyperrealistic portraits, intricate geometric patterns, or traditional Japanese work—may command higher overall prices, but the commission split itself generally remains unchanged. The higher price reflects the artist's expertise, not a different commission structure.

Are supply costs such as needles, inks, and disposables deducted before or after commission is calculated?

Supply cost treatment varies significantly between tattoo shops, with some deducting these expenses before calculating commission and others absorbing supply costs as part of their overhead.

In shops that deduct supply costs before commission, the tattoo price is reduced by the cost of needles, ink, gloves, barriers, and other disposables used during the session. The remaining amount is then split according to the agreed commission rate. For example, on a $200 tattoo with $20 in supplies, the $180 balance would be split between shop and artist.

Other tattoo shops include supply costs in their percentage retention, meaning artists receive their full commission on the entire tattoo price while the shop covers all materials. This approach is more common in shops keeping 40% to 50% of tattoo fees, as this higher percentage accounts for supply expenses.

Booth rental arrangements typically require artists to purchase and supply their own materials, maintaining complete inventory control and responsibility. These artists budget $50 to $200 monthly for basic supplies depending on their booking volume and the complexity of work they perform.

This is one of the key financial considerations we break down in the tattoo shop business plan.

Does the shop also charge the artist for a chair or booth rental fee in addition to taking a commission percentage?

Most tattoo shops operate on either a commission-based model or a booth rental model, but rarely combine both approaches simultaneously.

In commission-based shops, artists do not pay chair or booth rental fees because the shop's percentage of each tattoo already covers the cost of providing workspace, utilities, and overhead. This model works well for artists who are building their clientele and prefer predictable income without fixed expenses.

Booth rental shops charge artists a fixed weekly or monthly fee ranging from $100 to $500 depending on location, shop reputation, and included amenities. Artists in this arrangement keep 100% of their tattoo earnings and tips but are responsible for their own supplies, marketing, and building their client base.

Some hybrid arrangements exist where artists pay a reduced booth fee plus a small commission percentage, but these are uncommon and typically only found in high-end urban markets. These arrangements might involve $200 weekly rent plus 20% commission, creating a middle ground between pure commission and pure rental models.

Geographic location significantly impacts rental fees, with tattoo shops in major metropolitan areas like New York, Los Angeles, or London charging $400 to $800 monthly for booth rentals, while smaller cities might charge $200 to $400 monthly.

Are tips included in the commission calculation, or do artists keep 100% of their tips?

Artists keep 100% of tips received from clients in virtually all tattoo shops, regardless of whether they operate on commission or booth rental models.

Tips are considered personal gratuities for the artist's service and skill, separate from the tattoo fee that covers the actual work. This industry standard ensures artists benefit directly from client satisfaction and exceptional service, creating additional income beyond their base commission.

The separation of tips from commission calculations is important for accurate financial tracking in your tattoo shop. Artists should report tips as part of their personal income for tax purposes, while the shop only processes commission payments on the actual tattoo fees charged.

Average tip percentages in the tattoo industry range from 15% to 25% of the tattoo price for satisfactory work, with exceptional pieces or service often resulting in 30% or higher tips. An artist completing $3,000 in tattoo work weekly might receive an additional $450 to $750 in tips.

How often are commissions paid out to artists—daily, weekly, or monthly?

Weekly commission payouts are the most common payment frequency in tattoo shops, though some pay bi-weekly, monthly, or even immediately after each session.

Weekly payment schedules allow artists to receive regular income while giving the shop adequate time to process transactions, account for refunds or disputes, and manage cash flow. Most tattoo shops process payouts every Friday or Monday, covering the previous week's completed work.

Bi-weekly payment schedules align with standard payroll cycles and are common in larger tattoo shops with multiple artists and more formal business structures. These shops often use payroll services that handle tax withholding, benefits administration, and direct deposit for contractor payments.

Some smaller tattoo shops or those with strong cash flow pay artists immediately or within 24 to 48 hours after each session. This approach builds trust with artists and works well when the shop has few artists and straightforward commission structures.

Monthly payment schedules are less common in the tattoo industry because artists prefer more frequent access to their earnings. However, booth rental fees are almost always paid monthly, creating a predictable expense schedule for both artists and shop owners.

Are there minimum sales or performance targets tied to keeping a certain commission rate?

Some tattoo shops implement minimum performance requirements, but this practice varies widely depending on shop management philosophy and local market conditions.

Performance-based commission structures might require artists to generate a minimum monthly revenue threshold—such as $4,000 to $6,000—to maintain their current commission rate. Artists falling below these minimums might see their commission percentage reduced by 5% to 10% or face a shift to booth rental arrangements.

These performance requirements serve multiple purposes for tattoo shop owners: they ensure consistent revenue generation, maintain artist motivation, and justify the shop's overhead costs in providing space, supplies, and marketing support.

More commonly, tattoo shops use performance metrics to determine commission rate increases rather than decreases. An artist consistently generating $8,000 to $10,000 monthly might negotiate an improved split from 60% to 65% or 70% based on their proven value to the business.

Booth rental arrangements typically have no performance targets because artists pay fixed rent regardless of their booking levels. This model transfers all financial risk to the artist but also provides unlimited earning potential for those who can maintain consistent bookings.

Does the shop provide marketing, advertising, or client bookings that justify its share of the commission?

• Physical location and visibility: The tattoo shop provides a street-level location with signage, window displays, and visibility that generates walk-in traffic. Prime locations in high-foot-traffic areas can bring 10 to 30 walk-in inquiries daily, converting to 2 to 8 actual bookings depending on the season and shop reputation.
• Digital marketing and social media: Shops maintain Instagram accounts, Facebook pages, Google Business profiles, and websites that showcase artist portfolios and attract online inquiries. Professional shops invest $500 to $2,000 monthly in social media management, paid advertising, and search engine optimization to drive client traffic.
• Appointment management and front desk services: The shop handles phone calls, consultation bookings, deposit processing, and client communication. This administrative support allows artists to focus on tattooing rather than business management, representing 10 to 15 hours weekly of work the artist doesn't need to perform.
• Licensed and compliant space: Tattoo shops maintain all required health department licenses, pass regular inspections, carry liability insurance, and ensure the workspace meets legal requirements. These regulatory costs run $3,000 to $8,000 annually depending on location and can include quarterly health inspections and annual license renewals.
• Supplies and equipment maintenance: Shops provide autoclave sterilization equipment, furniture, lighting, chairs, and often basic supplies. A fully equipped tattoo station represents $5,000 to $12,000 in initial investment plus ongoing maintenance and replacement costs that artists don't bear in commission arrangements.
• Utilities and overhead expenses: The shop covers rent, electricity, water, heating, air conditioning, internet, and cleaning services. In urban markets, these combined expenses can reach $4,000 to $10,000 monthly for a multi-station tattoo shop.
• Brand reputation and credibility: Established tattoo shops have built reputations over years that attract clients who trust the business. This brand equity means clients feel safer booking with shop-affiliated artists versus independent artists working from unverified locations.

Get expert guidance on managing these operational costs inside our tattoo shop business plan.

How do commission rates at this shop compare to current industry standards in the local area?

Conclusion

This article is for informational purposes only and should not be considered financial advice. Readers are encouraged to consult with a qualified professional before making any investment decisions. We accept no liability for any actions taken based on the information provided.

Sources

1. Tattoodo - Tattoo Artist Earnings Guide
2. Inked Magazine - Tattoo Artist Income
3. Authority Tattoo - Artist Compensation
4. Saved Tattoo - Artist Salary Information
5. Business News Daily - Starting a Tattoo Business
6. Zippia - Tattoo Artist Salary Statistics
7. Indeed - Tattoo Artist Pay Guide
8. Dojo Business - Tattoo Shop Business Plan