We celebrate their birthdays, pay their vet bills, and include them in our family portraits — so it’s only natural to wonder if your furry friend can help lower your tax bill, especially as we head into the 2026 filing season.
After all, the 2025 Trump/GOP tax and spending bill introduced several new tax breaks, like the deductions for tips and overtime. Yet while the IRS doesn't consider pets to be "dependents," there are specific (albeit strict) scenarios where your animal can actually reduce your taxable income.
From medical service animals to the rising world of "pet influencers," here are four ways your pet costs might qualify for a tax deduction on your 2025 return.
This article is not exhaustive advice for claiming pet-related costs on your federal income tax return. Consult with a tax professional before filing a return with deductible pet expenses.
Is there a pet tax credit or deduction?
No. A general "pet tax credit" or deduction doesn't exist at the federal level. Because the IRS views pets as personal property rather than human dependents, your day-to-day pet care expenses (like food, grooming, vet bills, etc.) are typically not tax-deductible.
That said, several states have attempted to offer pet owners some tax relief. In California, for example, some lawmakers proposed a pet tax credit that would provide up to $250 for adoption fees and $500 for medical care. However, pet tax credits and similar proposals remain stalled in state legislatures and are not available for the 2026 tax season.
Despite these roadblocks, you aren't necessarily out of luck. There are four specific situations under federal IRS rules that could allow you to claim pet-related costs as a business, medical, or charitable expense — if you qualify.
Pet tax deductions for dogs, cats, and horses
As mentioned, the IRS has strict rules for when you might claim your pet-related costs as a deduction on your federal return. Generally, pet expenses must fall into one of the following categories to be deductible:
- Certified service animals. If a qualified animal is specifically trained to assist you in a diagnosed physical or mental disability, those related pet costs might qualify for the medical expense deduction (if you itemize instead of claiming the standard deduction).*
- Business working animals. If you use a cat for pest control at a storage facility, a guard dog to protect a warehouse or junkyard, or have a similar business situation, you might be eligible to claim pet costs as "ordinary and necessary" business expenses on Schedule C.
- Income-generating pets. If your pet works as an influencer (think: monetized social media), in film, or is a show or breeding animal, it could be considered a business asset and might qualify for a business deduction on Schedule C (unless your activity is considered a hobby — more on that later).
- Foster pets. If you foster animals for a qualified 501(c)(3) nonprofit animal shelter or rescue, you might be eligible to deduct unreimbursed, out-of-pocket expenses as part of the charitable tax deduction (if you itemize).
Of course, all four scenarios have rules for when you can (or can't) deduct related pet expenses. Next, we'll visit a few of those rules as they pertain to tax documentation.
*Note: Household pets or emotional support animals (ESAs) that are not trained for a specific task related to a disability typically do not qualify as a "service animal" under either IRS or Americans with Disabilities Act (ADA) rules.
Pet tax deduction rules in 2026
Substantiating a "pet deduction" on your federal income tax return requires rigorous documentation. You'll want to be as specific as possible, documenting the medical, business, or charitable reason for your pet-related expenses. Below are a few examples.
- Medical deduction pet rule. You'll have to obtain a "letter of medical necessity" from a doctor detailing why you need the animal. Even then, only documented, unreimbursed medical expenses (like food, grooming, and vet care) exceeding 7.5% of your adjusted gross income (AGI) might be deductible.
- Business pet rule. You must keep detailed records, like receipts, invoices, and logs of the working animal's hours and duties. The animal should also be appropriate for the role (i.e., no one uses a toy poodle as a guard dog at a junkyard).
- Performance pet rule. You can only claim your pet as an income-producing animal if the activity is a profit-seeking business, not a hobby. Plus, only qualified expenses, like training, grooming, and travel, can offset income (adequate documentation is also required).
- Foster pet rule. The charitable deduction might include food, vet, or supply costs associated with your foster animal for a qualified non-profit. You must maintain accurate tax records and obtain written acknowledgment from the organization that you are volunteering with.
Be careful not to mistake a hobby pet activity for a business expense. If the IRS determines your pet-related activity lacks a primary profit motive, you’ll lose the ability to deduct any of the animal's costs as a business deduction (and might actually be at risk of an IRS tax audit).
Also, if the working animal is a personal pet, you can only deduct the percentage of expenses that relate to its work — so don't be surprised if the IRS wants a payback for the time Fido spent napping on your couch.
