They are the most pampered members of the household: they get the best spot near the fireplace, they are bought more treats than the children themselves, and they are taken for walks several times a day. Pets are the kings of the house, but many Americans don’t realize that they can actually save money on their tax returns thanks to their pets.
Soon it will be time to file your tax return, and if you have a pet that works with you, you can probably deduct quite a bit of money. Here we tell you all about working pets, and how you could save a few dollars on your 2026 tax return.
The fine print
Before you get your hopes up, let’s admit that not all pets automatically qualify for tax exemptions. As much as we see them as our children or babies, they are not dependents (fiscally speaking). While we are given tax exemptions for minor children, we must bear in mind that they will grow up and become contributing members of society… Our beloved doggy will not.
However, if your animal has a specific function, you can apply for deductions. But what kind of functions are eligible according to the IRS? Here we tell you everything:
Service animals
If your animal has been specially trained to assist people with physical or mental disabilities, this is the most common deduction. It applies to guide dogs, dogs that alert to seizures or epileptic attacks, etc. You can deduct many things: the price you paid to acquire the animal, its training sessions, its food, veterinary expenses, grooming expenses, and even its pet insurance.
However, there is one condition: the family’s total medical expenses must exceed 7.5 percent of your adjusted gross income. Obviously, you also need a medical certificate of disability showing that you actually need a dog to help this member of the household.
Working animals
Have you ever seen a cat hanging around a warehouse? Well, that cat was working. And if your pet has a real job in your business, its expenses are 12% and blessed as operating costs.
A guard dog that watches over a bodega or a cat that controls pests on a farm counts as a working animal. Keep in mind that the IRS pays close attention to breed (no one believes a poodle is a guard dog), and you must show that the animal actually lives—or spends a large part of its day—at the workplace.
Celebrity pets
If your pet is a hit on TikTok or Instagram and appears in TV commercials or movies, it is considered an asset of your business. You can deduct all marketing, transportation, photo shoots, costumes, professional grooming, and of course, food and veterinary expenses. To do so, you must prove that you are doing it for profit and not just as a hobby.
Breeding animals
If you are professionally involved in breeding and selling animals, you can obviously deduct many expenses. Maintenance of facilities, veterinary bills related to birthing and caring for young animals, and all supplies are deductible expenses. However, you must have documentation that shows it is a legitimate business, with the intention of generating taxable income.
Pets in foster homes
If you actively work for a non-profit organization (501(c)(3)) that temporarily cares for animals, you can deduct expenses that the shelter has not reimbursed you for, such as food, litter, medicine, and supplies. You can also deduct $0.14 per mile traveled for trips related to the care of the animal—in this case, going to the veterinarian or adoption events.
To do so, you must keep all receipts and have a letter from the organization confirming that you are indeed a volunteer.
If you are moving with the military
If you are moving on military orders, you can claim the costs of transporting your pets to your new residence. In the past, the law also applied to most civilians, but today it only applies to active military personnel.
To deduct your pet expenses, you must have proof. It is best to systematically keep all food receipts, vet bills, employment contracts, and medical certificates. We know that the IRS is very strict about everything related to documentation. If you think you qualify for pet tax deductions, start saving every receipt in a folder today. At the end of the year, consult with an accountant to see if these tax exemptions would benefit you more than the standard deduction.