Three main types of animals may live in our homes: pets, comfort animals, and service animals. While each falls into the first category as pets, not all can be considered the latter two.
A comfort animal or emotional support animal helps an individual with anxiety. This anxiety may result from post-traumatic stress disorder (PTSD), major depressive disorder, a history of addiction, or other anxiety conditions. Doctors and psychologists medically recommend these animals, but they do not receive special training.
A service animal undergoes specific training to watch, alert, and lead their handler. Most start training as puppies, receiving significant instruction to address their handler’s needs. Service animals may assist with low vision or blindness, detect changes in blood sugar, blood pressure, or epileptic activity, or act as a retriever and mobility aid for individuals with limited mobility. Some animals receive additional training to support symptoms of PTSD or other anxiety disorders, going beyond the role of a comfort animal.
Develop a Budget
When someone with a disability or medical condition seeks out a service animal, they must fully understand the financial commitment involved in acquiring and caring for that animal. They should factor these expenses into their household budget for at least a decade. If the need for a service animal is ongoing, it’s wise to project a timeline for welcoming a new animal, as service animals often need to retire before the end of their natural lifespan, adding to the long-term financial picture. Expenses can include, but are not limited to:
- The cost of training the service animal. A few training centers may cover this cost, but otherwise, it can range from $10,000 to $20,000, depending on the training needed.
- Regular vet costs. On average, these range from $250 to $1,000 per year for any healthy dog.
- Regular dietary needs for the animal.
- Grooming. Costs vary depending on the animal’s hair type.
- Treats, toys, and other loving items you want to provide for the animal.
Expenses Qualify for a Tax Break
Service animals have earned a unique classification under tax law: they are considered medical equipment. As a result, most of the expenses listed above qualify as medical expenses for the handler. Tools used for the animals' tasks—such as watching, alerting, retrieving, and leading—also count as medical equipment. Additional training and ongoing “maintenance” costs for this “equipment,” including food, training incentives, vet bills, and grooming, are tax-deductible.
However, like any tax-deductible expense, these costs require sufficient cash flow to manage upfront. Many people assume, "These expenses are deductible, so I should be able to handle them," but that’s not always the case. The tax deduction for service animals falls under itemized deductions, and you may not meet the threshold to itemize in all tax years. For example, in 2025, the standard deduction is $15,000 for single filers and $30,000 for married couples filing jointly. Track expenses like training and veterinary care in years when itemizing is likely. Integrating these costs into your overall financial plan can help you avoid unexpected financial strain.
A well-trained service offers life-changing support, independence, and peace of mind for individuals with medical or mobility needs. With thoughtful planning, the financial commitment doesn’t have to be a barrier. A CFP® professional can help you integrate these costs into your long-term financial plan, ensuring you’re prepared to care for both your health and your helper.
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