Dogs, Cats, and Taxes: When Pet Costs Are (and Aren’t) Deductible in Canada
If you’ve ever stared at a towering vet bill and thought, “Why can’t this be tax-deductible?” you’re not alone.
But can you actually write off your pet’s expenses?
The short answer: almost always no.
But - and this is an important “but” - there are some specific, narrowly defined situations where the Canada Revenue Agency (CRA) does allow pet-related deductions. The rules are not intuitive, and like most things with taxes, they require good documentation and clear evidence that your animal fits within the CRA’s definition of deductible.
This blog will walk you through:
The general rule for pets and taxes in Canada
The few exceptions where animal costs are deductible
What documentation you need if you qualify
Common misunderstandings about emotional support animals and therapy pets
Key takeaways you can apply at tax time
So, let’s break down what’s allowed, what’s not, and what it means for you and your furry family members.
The General Rule: Pets = Personal Expenses
For most Canadians, pets are considered part of their personal life. That means the CRA treats them like groceries, vacations, or hobbies - personal costs that don’t qualify for deductions.
Under this general rule, the following expenses are non-deductible:
Routine vet bills
Food, treats, and toys
Leashes, collars, kennels, and accessories
Grooming services
Boarding, pet sitters, or doggy daycare
Even if you argue (rightly!) that your dog reduces stress, supports your mental health, or provides companionship, the CRA doesn’t recognize that as a deductible expense. For tax purposes, pets are family, not business or medical deductions.
This can feel frustrating because the financial burden of caring for animals is real. In Canada, the average cost of owning a dog can easily reach $3,500–$4,000 per year, while cats average $2,000–$2,500 annually. Add in an emergency vet visit, and those numbers skyrocket. But sadly, for most pet owners, those costs stay firmly in the personal expense category.
When Pet Expenses Can Be Claimed
Now, here’s where things get interesting. There are three main categories where the CRA does recognize animal expenses:
Service Animals (Medical Expense Tax Credit)
Business Use of Animals
Security Animals
Let’s unpack each one.
1. Service Animals (Medical Expense Tax Credit)
If you have a medically diagnosed condition that requires the assistance of a specially trained animal, you may qualify to claim some of the costs under the Medical Expense Tax Credit.
Eligible animals include:
Guide dogs for people who are blind
Hearing assistance dogs for people who are deaf or hard of hearing
Seizure response dogs
Service animals for people with severe diabetes
Psychiatric service dogs trained to support conditions like PTSD
Other animals trained to perform specific tasks directly tied to a disability
What you can claim:
The cost of purchasing the animal
Care and maintenance (food, vet bills, training, grooming)
Travel expenses related to training with the animal
Proof required:
A letter from a medical practitioner certifying your condition and medical requirement
Receipts for all costs claimed
It’s important to note: the CRA only recognizes specially trained service animals. Emotional support animals (ESAs), no matter how important they are to your mental health, are not currently eligible under CRA rules.
2. Business Use of Animals
If you use animals directly in your business operations, their costs may qualify as business deductions. This applies to situations where animals are part of generating income, not just hanging around the office for morale.
Examples:
A farmer deducting the costs of working dogs used for herding sheep or cattle
A therapy practice that employs a trained therapy dog as part of its service offering
A pest control company that uses cats in barns or warehouses as part of its operations
In these cases, expenses like food, vet bills, and training may be deductible, but only in proportion to the animal’s business use.
Rules to follow:
You must prove the animal is genuinely used to generate business income
Keep receipts and clear documentation
Be prepared to explain to the CRA how the animal’s work ties directly to your business revenue
3. Security Animals
In limited circumstances, businesses can deduct the costs of guard animals.
Example: A junkyard or warehouse that employs guard dogs to protect property and inventory.
Here too, documentation is everything. You’d need to show the CRA that:
The dogs are maintained primarily for business security
Only the portion of expenses directly related to guard duties is claimed
Household pets doubling as “security” don’t qualify. So if your German Shepherd barks when the doorbell rings, that doesn’t make them a deductible guard dog in the CRA’s eyes.
Emotional Support Animals: The Hard Truth
This is an area of confusion for many Canadians. Emotional support animals (ESAs) are essential to the well-being of countless people. They provide comfort, regulate anxiety, and reduce depression. But under current CRA rules, they are not recognized as eligible medical expenses.
Even if you have a doctor’s note recommending an ESA, the CRA does not treat them the same as service animals. Why? Because ESAs are not trained to perform specific tasks tied to a disability.
This distinction is frustrating for many, especially given the growing recognition of ESAs in housing and workplace accommodation contexts. But when it comes to taxes, the CRA draws a firm line. Until policy changes are made, ESAs remain a personal expense.
Documentation: Your Best Friend in Any Claim
If you fall into one of the categories above - service animals, business animals, or guard dogs - documentation is essential. The CRA doesn’t operate on trust; they operate on evidence.
You’ll need:
Medical practitioner’s letter (for service animals)
Receipts for every expense claimed (food, vet, training, purchase)
Training certification for service animals
Business records showing how the animal contributes to income generation or security
Keep in mind: you don’t send this documentation with your return, but you must keep it on file in case the CRA asks for verification.
Common Misunderstandings
Let’s clear up some myths which need to be debunked:
Myth #1: “If I work from home and my dog keeps me calm, I can deduct the cost.”
False. Stress relief and companionship aren’t recognized as business or medical expenses.
Myth #2: “A doctor’s note for my emotional support cat makes her a medical deduction.”
False. Only specially trained service animals qualify, not emotional support pets.
Myth #3: “All farm animals are deductible.”
Not exactly. Only those directly tied to business income or farm operations qualify.
Myth #4: “If I use my dog for both personal and business purposes, I can claim everything.”
Nope. You can only claim the portion of expenses directly tied to business use.
Why These Rules Matter
Taxes might seem like a cold topic, but they’re deeply connected to questions of equity and justice. When we talk about who gets financial relief and who doesn’t, we’re really talking about which needs the government recognizes as “legitimate.”
The CRA’s rules tell us a lot about what society values:
Assistance for people with documented disabilities: recognized
Animals used for business and security: recognized
Companionship, emotional comfort, and family pets: not recognized
For everyday pet owners, that can feel unfair. Our animals enrich our lives in countless ways. They keep us healthy, active, and emotionally grounded. But the CRA is not in the business of valuing companionship - they’re in the business of applying narrow definitions that fit their tax framework.
Key Takeaways
For most Canadians: Pet expenses are personal and not deductible.
Exceptions exist:
Service animals (eligible medical expense)
Business animals (farm dogs, therapy animals, pest control cats)
Security animals (guard dogs for business premises)
Emotional support animals are not eligible under CRA rules.
Documentation is essential: medical notes, receipts, training certifications, and proof of business use.
Pets bring joy, love, and sometimes chaos to our lives. But in the eyes of the CRA, joy doesn’t equal a tax deduction. Unless your pet fits into one of the specific exceptions, the costs of their care stay in the personal expense column.
Final Thoughts
If you’ve been hoping to shave a little off your tax bill by claiming the cost of kibble, vet visits, or doggy daycare - sorry, that’s not going to fly with the CRA. But if you rely on a trained service animal, or if your business depends on animals to function, you may be eligible for deductions.
It all comes down to proof. The CRA doesn’t like assumptions, and they certainly don’t like guesswork. If you think your situation might qualify, keep careful records, get the correct letters, and talk to a CPA who can guide you through the details.
If you’re a Canadian pet owner wondering whether your situation qualifies - or if you want to make sure you’re not leaving money on the table at tax time - let’s connect.
Your pets may not always be deductible, but your peace of mind about taxes can be.
And if this blog helped clear things up, check out my post on Your Kids, Your Credits: A Complete Guide to Canadian Child Tax Benefits for more insight into how Canadian families can make the most of the support they’re entitled to.