Costs for Pets – What Can Be Deducted from Taxes?

Taking proper care of a pet can be very expensive – one must account for expenses related to its nutrition, cleanliness, and medical care. Can any of the associated costs be deducted from taxes? In this post, we explain how the tax office interprets this and what options are available – we invite you.

What are the costs of maintaining pets?

The costs of maintaining pets cover a wide range of expenses – their amount depends on many factors and it is hard to give even an approximate sum. A large dog has very different needs than a hamster.

Even the cost of acquiring an animal can vary significantly – a purebred dog or cat from a breeder costs between 500 and 1500 euros, and you pay considerably more for very rare breeds. An alternative is to help animals from a shelter – here you pay a significantly lower amount of 100 to 300 euros or, in some cases, you take an animal for free. For smaller animals, the costs are also lower – depending on the species, hamsters, rabbits, or guinea pigs cost between 5 and 50 euros.

Costs of purchasing an animal – is it tax-deductible?

Regardless of where the animal comes from, whether from a shelter or a breeder, the purchase of a new friend cannot be deducted from taxes. The only exception is if the animal is kept for professional reasons (more on this later in the article).

Can pets be deducted from taxes?

The purchase of an animal is only the first step – now we must budget for regular expenses. It starts with the basic equipment – leash, bowl, muzzle, collar, grooming utensils, litter box, transport box, cage, sleeping place, and much more. Initially, there is a considerable, one-time expense.

In addition to the necessary equipment, many pet owners decide to have a transponder chip implanted in their pet – this allows it to be easily found if it gets lost. The costs for chipping a cat or dog amount to an additional 30 to 60 euros.

Throughout the entire care period, we pay ongoing maintenance costs for the pet – food, treats, toys, poop bags, shampoos, cosmetics, protective agents, etc. According to the German Animal Welfare Association, an average of 90 to 100 euros per month is spent on keeping a dog in Germany and 60 to 80 euros for a cat. Regular and unforeseen veterinary costs should also be considered.

As we see, there is quite a lot of it, which raises the question of whether it is possible to offset some of the incurred costs in the annual tax return with the tax office. Generally, it is considered a private pleasure, thus not specifically classified as a deductible group. However, there are some situations where we can ask for a refund. Which expenses for pets can be deducted from taxes?

Costs for the pet groomer in the tax return

All grooming activities such as nail cutting, washing, combing or drying, conducted by a specialized pet groomer, can be deducted as a household-related service from taxes. However, an important condition must be met – the service must be provided in our home. A visit to the salon cannot be considered part of the deduction for household-related services.

Household-related services for other occasions

The principle of household-related services applies not only to pet care but also to other private occasions. For example, if you celebrate a wedding at home, certain services can be claimed for tax purposes here as well. Detailed information on what costs are deductible at a wedding, helps with optimal tax planning.

Please note: Invoices and cashless payments are prerequisites for claiming the tax deduction.

Costs for pet care during a trip

Pets can be deducted from taxes when we hire someone for care during a trip. As above – this service can also be deducted as a household-related service, so it must take place in our home. This is not possible if we place the animal in a care facility.

Liability insurance

Insurance for pets is tax-deductible – if we take out liability insurance for the pet (in some federal states this is mandatory), we can consider this as special expenses in the tax return. Of course, under the condition that the maximum amount of such expenses has not yet been exceeded.

Other costs for pets must unfortunately be borne in full – an exception is occupationally related animal husbandry, more on this in the following section.

Tax deduction for professionally bred animals

Greater tax benefits can be achieved by individuals who keep animals for professional reasons. If they help at work, more tax benefits can be achieved – the legislator has decided that a service animal should be legally considered a work tool. The regulations are identical in this case to business trips, professional literature, or work clothing.

This allows the person to deduct all costs incurred for the maintenance of the animal as advertising expenses. This includes food, cleaning agents, and medical care.

In Germany, every person has the right to deduct a flat rate of 1230 euros for advertising expenses from taxes. This can be higher if it is decided that the expenses exceed the limit set by the tax office. Then precise documentation is required – it is necessary to collect all receipts with a detailed description of the paid services, food, or accessories.

Tax on pets – does it apply in Germany?

Currently, there is only a dog tax in Germany – there are no fees for other animals.

The dog tax is a municipal tax that must be paid by the owners to the municipality 

in which they live – its amount is determined by the authorities of each federal state.

If a puppy is purchased, it must be registered for tax purposes at the age of three months at the latest. For older animals, you have two to four weeks to do so.

Costs for pets in the tax return – easily deducted with the Taxando app

Costs for pets in the tax return – easily deducted with the Taxando app

Not sure how to account for pet-related expenses on tax in Germany? No problem – just download the Taxando accounting app. The user-friendly program enables quick and uncomplicated handling of all formalities. With the PREMIUM package, the tax return can be filled out in a few minutes – including all relevant deductions and reliefs. Try it now – it’s worth it!