As the cost of living continues to climb across New York, state legislators are looking to give pet owners a financial break. A proposal recently introduced in the New York State Senate aims to create a tax credit for dog and cat owners to offset both everyday and emergency expenses.
Steven Raga, a Democratic assemblymember representing District 30 in Queens, proposed Assembly Bill A5340 in February 2025 to cover the total cost of pet ownership.
“Addressing affordability is at the heart of the current legislation as rising costs and affordability are impacting everyday New Yorkers,” Raga said.
Under the proposed bill, pet owners would be able to claim up to $150 for basic expenses and up to $300 for veterinary care, with a max credit cap at $450 per pet for a maximum of two pets per household, totaling as much as $900 a year.
The bill specifies everyday expenses such as food, litter, crates and litter boxes, collars, leashes, toys and grooming supplies would be included. Veterinary expenses include annual exams, medications, emergency care and tests deemed necessary by a registered veterinarian.
The credit is specifically limited to domestic companion animals. Police and detection dogs, animals used in laboratory research and those confined to animal hospitals would not be eligible.
Owners of other common pets besides cats and dogs, such as birds, fish, reptiles and small mammals such as rabbits, hamsters, ferrets, rats and guinea pigs also do not qualify for the tax credit under this bill.
Over the past decade, the cost of veterinary care has increased over 60%, largely due to independent practices backed by private equity firms, as well as pet food prices climbing 23% between 2020 and 2023 due to supply chain issues and general inflation.
These increases have made basic animal care a genuine financial strain, with some skipping vet visits altogether.
A U.S. News survey has even found that 76% of respondents went into debt to save their pet’s lives, and 63% identified veterinary bills as the biggest source of pet-related debt.
For millions of New York pet owners, this mounting pressure is exactly what lawmakers say prompted the proposed tax credit, which aims to put some of that money back into the pockets of those who are struggling to keep up.
The legislation is still in the works, but if it is passed, the credits would apply to expenses paid this year.
The bill grants the state tax commissioner full authority to request proof of documentation in expense costs and pet ownership.
According to ABC7 New York, taxpayers looking to claim the credit should hold onto their receipts and vet invoices in preparation for the next tax season.
