Pet owners in New Jersey could soon receive up to $900 in tax credits just for having a furry friend, under a newly proposed bill aimed at easing the costs of pet ownership.
Assembly Bill 4995 Offers Relief to Pet Parents
Introduced on May 7 by Assemblyman Alex Sauickie, Assembly Bill 4995 would provide tax credits for dog and cat owners to help cover both daily expenses and veterinary costs.
The plan includes a$300 credit for routine costs such as food, leashes, collars, crates, grooming supplies, and toys. An additional $600 credit would cover veterinary expenses, including annual check-ups, emergency care, diagnostic testing, and medications.
The total maximum credit per taxpayer, regardless of the number of pets, is capped at $900 per year. Pet owners must provide documentation proving ownership and submit receipts for eligible expenses when filing their state taxes.
Rising Costs of Pet Ownership
Owning a pet can be rewarding, providing mental health benefits and contributing to healthy aging, but it is also expensive. According to Chewy, annual costs for dogs range from $1,280 to $9,000, while cats cost between $760 and $3,495, according to estimates fromPetPlace.
New Jersey, rated the fourth most expensive state for pet ownership, could provide significant relief for pet parents through this proposed credit, helping them manage the financial burden of routine care and unexpected vet bills.
Pet Tax Relief Beyond New Jersey
Lawmakers in other states are exploring similar initiatives. In New York, legislators are considering a bill offering up to $150 for routine pet expenses and up to $300 for veterinary care per pet, with a total credit of $900 for owners with two pets.
On the federal level, Congresswomen Deborah Ross and Claudia Tenney introduced the People and Animals Well-being (PAW) Actin 2025. This bipartisan legislation would allow pet owners to use HSA and FSA funds for veterinary expenses, further supporting responsible pet care.
Next Steps for Assembly Bill 4995
The New Jersey bill must pass both the state Senate and Assembly before it goes to the governor for approval. If signed into law, residents could claim the tax credits starting January 1, 2026, for expenses incurred during the tax year.
Experts say the bill could make pet ownership more affordable and encourage responsible care, especially for families with multiple pets. Advocates also hope it will serve as a model for other states considering similar relief measures.
