The Big Picture — How Pet Expenses Are Taxed

Pet-related expenses fall into five distinct tax categories, each with different rules. Understanding which category applies to each line on your vet bill or pet store receipt is the starting point for knowing what you should and should not be paying in sales tax.

The five categories are: veterinary professional services (the exam, surgery, diagnostics — almost always exempt), prescription drugs for animals (exempt in all but one state, following the same rule as human prescriptions), non-prescription OTC pet medications and treatments (taxable in most states), pet food (taxable in virtually every state — unlike human food which is often exempt), and grooming and boarding services (taxable in some states, exempt in others). The most important consumer insight is that human food exemptions do not extend to pet food — even states that broadly exempt grocery food (CaliforniaCalifornia Tax: 7.25%, New York, Texas, Florida) tax pet food because those exemptions apply only to food sold for human consumption.

Key Highlights

  • Veterinary professional services (exams, surgery, x-rays, diagnostics) are exempt from sales tax in most states — only Hawaii, New MexicoNew Mexico Tax: 5.13%, South DakotaSouth Dakota Tax: 4.50%, and Kentucky (for small animals) tax vet services broadly.
  • Prescription drugs dispensed by a veterinarian are exempt from sales tax in all but one state — following the same near-universal rule as human prescription drugs.
  • Pet food is taxable in virtually every US state — human food exemptions apply only to food for human consumption, not animal food.
  • Florida exempts "therapeutic veterinary diets" — prescription pet food recommended by a vet for medical conditions — from sales tax.
  • Grooming services are taxable in Texas (cosmetic grooming only), Iowa, Kansas, and several other states — but exempt when performed as part of a medical veterinary service.
  • Boarding services are taxable in MinnesotaMinnesota Tax: 6.88%, New York, and several other states — but often exempt when provided alongside medical treatment.
  • Buying a pet from a breeder or pet store is a taxable sale of tangible personal property in most states — guide dogs, hearing dogs, and service dogs are exempt in many states.
  • Pet cremation is tax-exempt in WisconsinWisconsin Tax: 5.00%, Minnesota, and some other states — but taxable in many states as a non-veterinary service.
  • Microchip implantation service is generally not taxable — but the microchip chip itself (as a tangible product) is taxable in most states.
  • OTC flea and tick products, vitamins, dental chews, and similar non-prescription pet products are taxable in most states even when purchased at a veterinary clinic.

The Five Categories — Taxable vs Exempt at a Glance

Category Examples Generally Taxable? Key Exceptions
Veterinary professional services Annual exam, surgery, x-ray, lab work, dental cleaning, vaccinations (service portion), wound treatment No — exempt in most states HI, NM, SD tax all services including vet. KY taxes small animal vet services. Some states tax non-medical services (grooming, boarding) even when provided by vets.
Prescription drugs for animals Heartgard (prescription), thyroid medication, antibiotics, insulin for pets, flea prevention requiring Rx No — exempt in almost all states IL and KY may tax some companion animal prescriptions in some contexts. Always exempt when dispensed as part of a vet visit and noted on the record.
OTC non-prescription pet medications OTC flea products, pet vitamins, non-prescription antifungals, dental rinses, eye/ear drops sold without Rx Yes — taxable in most states If dispensed by a vet and noted in clinical record, some states treat these as part of exempt vet service. Always check receipt.
Pet food Kibble, wet food, treats, raw food, prescription diet food Yes — taxable almost everywhere Florida exempts therapeutic/prescription veterinary diet food. Some states exempt livestock feed but not pet food. Human food exemptions do NOT cover pet food.
Services: Grooming, boarding, training Bathing, haircut, nail trim, boarding overnight, obedience training Varies widely by state Taxable in TX (cosmetic), IA, KS, MN, NY, CT (some), SD, WV, HI, NM. Exempt in most other states. Exempt when performed as part of a vet medical service in most states.
Pet Food vs Human Food — Why the Grocery Exemption Does NOT Apply to Pet Food

One of the most common pet owner misconceptions about sales tax is assuming that because human food is exempt in their state, pet food would also be exempt. This is incorrect in virtually every state. Human food exemptions — in states like California, Texas, Florida, New York, and most others — explicitly apply only to food "sold for human consumption" or "food for human ingestion." Pet food, by definition, is food for animal consumption — it falls outside the human food exemption regardless of how nutritious, organic, or expensive the pet food is. Vermont's DOR guidance puts it explicitly: "This is limited to food that is sold for humans, which means it does not apply to pet food." The same rule applies in Texas, New York, California, and virtually every other state with a grocery food exemption. The only exceptions are Florida's therapeutic veterinary diet exemption and livestock feed rules in farming contexts. For pet owners, the practical reality is that every bag of kibble, every can of wet food, and every bag of treats is subject to the full combined sales tax rate at the checkout, regardless of what the store's grocery food receives.

Reverse Formula — Verify Your Vet Bill

A vet bill with multiple services and products is one of the most complex consumer receipts to verify — because different lines have different tax treatment. The reverse formula helps you check whether the correct items were taxed.

Vet Bill Tax Verification
Implied Taxable Base = Tax Charged ÷ Combined Tax Rate
Should Equal: Only the taxable items (OTC products, pet food, grooming if taxable in your state) — NOT vet services or prescription drugs

Example: Vet bill in WashingtonWashington Tax: 6.50% state (10.25% combined rate). Exam: $75 (exempt). Prescription antibiotic: $45 (exempt). OTC flea prevention: $38 (taxable). Pet food bag: $55 (taxable). Nail trim: $18 (taxable — grooming is taxable in WA). Expected tax: ($38 + $55 + $18) × 10.25% = $111 × 10.25% = $11.38. Reverse check: $11.38 ÷ 0.1025 = $111.02 ≈ $111 ✓. If tax shows $14.17: $14.17 ÷ 0.1025 = $138.24 implied taxable base — more than $111, suggesting the prescription drug or exam fee was incorrectly taxed.

Step-by-Step: How to Read Your Vet Bill for Sales Tax

1
Look for itemized line items on the vet invoice A properly prepared vet invoice should list each service, drug, product, and food separately — with tax applied only to the taxable items. If your bill shows one lump sum with tax applied to everything, ask the clinic to provide an itemized breakdown. Separate line items are not just good practice — in many states (Washington, Vermont), they are legally required for correct tax treatment.
2
Identify which lines should be tax-exempt in your state Exempt in most states: the exam fee, surgery cost, diagnostics (x-rays, blood work), the vet's professional fee for any service. Also exempt in most states: any drug dispensed by the vet with a prescription, noted on the clinical record. Check for the "Rx" designation on drug lines.
3
Identify which lines should be taxable Taxable in most states: OTC products sold at the clinic (non-prescription flea products, vitamins, dental chews), all pet food (prescription diet or otherwise, with the Florida exception), and grooming services in states that tax them. Also taxable: the microchip itself as a product (though the implantation service is not taxable).
4
Sum only the taxable items and multiply by the combined rate Add all OTC products + pet food + taxable grooming = expected taxable base. Multiply by combined rate for the clinic's ZIP code. Compare to the actual tax on the bill. Discrepancies over a few cents for rounding warrant checking with the clinic's front desk.
5
Use the reverse formula to confirm Divide the tax charged by the rate: Tax ÷ Rate = Implied Taxable Base. Compare to what you calculated as taxable. If the implied base includes clearly exempt items like the exam fee or prescription drugs, the clinic's billing system has an error worth correcting — especially for ongoing clients with recurring medication costs.

Reverse Sales Tax Calculator

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Real-World Pet Tax Scenarios

Scenario 1: Annual Vet Visit — Correctly Itemized Bill (California)

Situation

A dog owner in Los Angeles visits the vet for annual checkup, heartworm prevention prescription, flea prevention OTC product, and a bag of regular kibble. LA combined rate: 9.50%.

Annual exam fee: $85 — Professional veterinary service. California: vet services are exempt from sales tax. Tax = $0.

Heartworm prevention (Heartgard — prescription Rx): $48 — Prescription drug dispensed by vet. California: prescription drugs exempt. Tax = $0.

OTC flea prevention (Frontline — no Rx required): $42 — Non-prescription product sold at clinic. California: OTC products are taxable as retail goods. Tax = $42 × 9.50% = $3.99

Dog kibble (15 lb bag): $65 — Pet food. California exempts human food but NOT pet food. Tax = $65 × 9.50% = $6.18

Total tax on visit: $3.99 + $6.18 = $10.17

Reverse check: $10.17 ÷ 0.095 = $107.05 ≈ $42 + $65 = $107 ✓

Key lesson: The exam ($85) and prescription ($48) — the two most expensive items — are both correctly tax-exempt. Only the OTC product and the food are taxed. Total tax on a $240 vet visit: $10.17 (4.2% effective rate on the total bill — not 9.50%, because the expensive items are exempt).

Scenario 2: Florida Therapeutic Diet — The Prescription Pet Food Exemption

Situation

A Florida cat owner buys food for their cat with chronic kidney disease. The vet has prescribed a specific therapeutic renal diet (Hills Prescription Diet k/d). Florida combined rate: approximately 7%.

Regular cat food (non-prescription): $45 — Standard pet food, taxable in Florida. Tax = $45 × 7% = $3.15

Hills Prescription Diet k/d (therapeutic veterinary diet, prescribed by vet): $68 — Florida specifically exempts "therapeutic veterinary diets" — pet food prescribed by a veterinarian for medical conditions. Tax = $0

Tax difference between regular and prescription food: $68 regular food would have cost $68 × 7% = $4.76 in tax. The prescription diet exemption saves $4.76 per bag purchased.

For a cat on ongoing therapeutic diet (12 bags/year): Annual tax savings = $4.76 × 12 = $57.12 per year

Key lesson for Florida pet owners: If your vet has recommended a specific therapeutic diet for your pet's medical condition, ensure the food is properly categorized as a therapeutic veterinary diet on the clinic's invoicing system. This exemption is legally available and applies to the ongoing purchase of the prescription diet food.

Scenario 3: Texas Grooming — Cosmetic vs Medical

Situation

A Texas dog owner gets their dog groomed. Two scenarios: (A) Grooming at a standalone pet salon, (B) Nail trim at the vet as part of post-surgical recovery. Texas combined rate: 8.25%.

Scenario A — Cosmetic grooming at pet salon ($75 for bath, haircut, nail trim):

Texas taxes grooming services for cosmetic purposes as taxable services. Tax = $75 × 8.25% = $6.19

Scenario B — Nail trim at vet as part of post-surgical paw care ($25):

Texas exempts grooming when performed by a veterinarian for medical (not cosmetic) purposes. The nail trim is part of medical care — not taxable. Tax = $0

Key rule: In Texas, the same physical service (nail trim) can be taxable or exempt depending on who performs it and whether it is cosmetic or medical. A groomer's nail trim is cosmetic = taxable. A vet's nail trim as part of wound care or orthopedic recovery = medical = exempt.

Standalone grooming shops in Texas should always charge sales tax: If your Texas grooming receipt shows no sales tax, verify with the groomer whether they are collecting correctly.

Scenario 4: Buying a Pet — Is the Purchase Taxable?

Situation

Three pet acquisition scenarios in New York: (A) Buying a puppy from a breeder ($1,500), (B) Adopting a dog from a rescue ($250 adoption fee), (C) Buying a trained guide dog for a visually impaired person ($0 to buyer but value $20,000+).

Scenario A — Puppy from breeder ($1,500):

New York taxes the sale of pets from breeders as tangible personal property. Tax at NYC rate (8.875%): $1,500 × 8.875% = $133.13

Scenario B — Adoption from 501(c)(3) nonprofit rescue ($250):

In many states including New York, adoption fees from qualifying nonprofit organizations may be partially or fully exempt. In NY, registered rescue organizations are often treated as charitable organizations — adoption fees may be exempt as charitable contributions rather than retail sales. Verify with specific organization. Many NY rescues do not charge sales tax on adoption fees. Tax likely: $0

Scenario C — Guide dog for visually impaired person:

New York explicitly exempts the sale of guide dogs, hearing dogs, and service dogs when sold for use by a person to compensate for impairment. Tax = $0 regardless of the dog's value.

Similarly — Texas: Exempts guide dogs AND dogs used for herding livestock. Florida: exempts seeing eye dogs and related supplies for blind persons. Maine: exempts seeing eye dogs and supplies.

Pet Tax Rules — State-by-State Overview (2026)

State Vet Services Taxable? Prescription Rx Drugs (Animal) Pet Food Grooming / Boarding Key Special Rules
California No — exempt Exempt Taxable (9.50%+ combined) Exempt (services not enumerated) OTC pet products taxable. Prescription therapeutic diets: taxable (no FL-type exemption in CA).
Florida No — exempt Exempt Taxable — EXCEPT therapeutic veterinary diets prescribed by vet Taxable (pet grooming included in taxable services) Most generous therapeutic diet exemption. Seeing eye dog supplies exempt. Grooming taxable statewide.
Hawaii Yes — GET applies to all services Taxable (GET on all) Taxable (GET) Taxable (GET) GET applies to virtually all transactions including vet services — unusual nationally.
Illinois No — exempt Companion animal Rx: may be taxable in some situations Taxable Exempt (services not enumerated in IL) Companion animal prescription drugs may have different treatment than farm animal Rx in IL.
Iowa No — exempt Exempt Taxable Grooming taxable; boarding exempt Iowa specifically taxes grooming services but not boarding — unusual distinction.
Kansas No — exempt Exempt Taxable Grooming taxable Kansas specifically enumerates grooming as a taxable service.
Kentucky Yes — small animal vet services taxable May be taxable in some contexts Taxable Taxable Kentucky taxes small animal veterinary services — unusual among major states. Farm animal vet exempt.
Minnesota No — exempt Exempt Taxable Grooming taxable; boarding taxable; pet cremation may be taxable MN specifically taxes grooming AND boarding as amusement/recreation services. Horse-related services have specific exemptions.
New Mexico Yes — GRT on all services Taxable (GRT) Taxable Taxable (GRT) Gross Receipts Tax applies to all NM veterinary income including services.
New York No — exempt Exempt Taxable Boarding taxable; grooming taxable in NYC and some counties Guide/hearing/service dogs exempt. Boarding taxable statewide. Pet cremation taxable as non-vet service. Grooming by vet for medical = exempt.
PennsylvaniaPennsylvania Tax: 6.00% No — exempt Exempt Taxable Exempt (services not taxable in PA context) PA broadly exempts services. Pet food taxable. OTC pet products taxable.
South Dakota Yes — all services taxable in SD Taxable as part of service Taxable Taxable SD taxes most services including vet services as part of its broad service tax base.
Texas No — exempt Exempt Taxable Cosmetic grooming taxable; medical grooming by vet exempt Key cosmetic vs medical grooming distinction. Guide dogs and herding dogs exempt from pet purchase tax. OTC flea products taxable.
Vermont No — exempt (must be separately stated) Exempt Taxable Exempt when part of vet service; taxable when standalone VT DOR explicitly states pet food is NOT exempt (only human food is). Prescription animal drugs exempt. Durable medical equipment for animals exempt.
Washington No — exempt Exempt Taxable Grooming taxable; boarding taxable WA requires vet invoices to separately state taxable products from exempt services. Pet vitamins at vet visits: must be separately stated and taxed. Livestock feed for farmers: exempt.
Wisconsin No — exempt Exempt Taxable Taxable Pet cremation exempt in Wisconsin — unusual exemption. Pet food taxable.

Sources: AVMA State Tax Report, Vermont DOR, Minnesota DOR, Washington DOR, California CDTFA Pub 36, Avalara, 1-800Accountant, RBT CPAs — April 2026. Rules vary and change — verify with your state's DOR.

Vet Clinic vs Pet Store — Same Product, Different Tax?

Item Bought at Vet Clinic Bought at Pet Store Key Rule
Prescription flea prevention (Rx) Exempt — dispensed by vet on record Exempt — prescription drug regardless of where dispensed Same tax treatment at both locations if it requires a prescription
OTC flea prevention (no Rx needed) Taxable — retail sale of OTC product Taxable — standard retail OTC sale Same tax treatment — OTC products are taxable whether at vet or pet store
Regular pet food Taxable — pet food is taxable everywhere Taxable — same rate as at vet No difference — pet food taxable at all retail locations
Therapeutic prescription diet (FL) Exempt — prescribed by vet May be taxable if sold without prescription documentation Florida's therapeutic diet exemption may require prescription documentation
Pet vitamins and supplements Taxable — OTC supplements Taxable — same Human vitamin exemptions (CT) do NOT extend to pet vitamins
Microchip Chip: taxable (product). Implantation service: exempt. N/A — only sold/implanted at vet Product and service separated — tax only on the chip, not the procedure
Nail trim Exempt if medical; taxable if cosmetic (TX). Generally exempt if part of vet service. Taxable grooming service in TX, IA, KS, MN, NY and others Same service may have different tax treatment at vet vs groomer depending on state

What Surprises Pet Owners Most About Pet Taxes

Commonly Exempt (No Tax) — May Surprise Pet Owners

  • The exam fee at the vet — professional service, exempt in most states
  • Surgery and hospitalization costs — professional veterinary services, generally exempt
  • Prescription medications dispensed by the vet — exempt like human prescriptions in most states
  • Guide dogs, service dogs, and hearing dogs — explicitly exempt from sales tax when purchased in most states
  • Microchip implantation service (not the chip itself) — the implantation procedure is a vet service, generally exempt
  • Pet cremation in Wisconsin and Minnesota — unusual exemptions that pet owners rarely know about

Commonly Taxable — Often Surprises Pet Owners

  • Pet food — even in states that exempt human groceries, pet food is taxable almost everywhere
  • OTC flea and tick products (Frontline, Advantage, etc.) — non-prescription products are taxable retail goods
  • Pet vitamins, dental chews, and supplements — taxable as OTC non-prescription products
  • Grooming services in Texas (cosmetic), Iowa, Kansas, Minnesota, and New York (boarding)
  • The microchip itself (not the service) — sold as a product, taxable in most states
  • Buying a pet from a breeder or pet store — taxable as a sale of tangible personal property in most states

Expert Tip — Ritu Sharma

"The pet tax error I see most consistently on vet bills is the clinic applying sales tax to the entire invoice — including the professional exam fee and prescription drugs — when those lines should be exempt. This typically happens with newer or less sophisticated veterinary practice management systems that apply tax by default to all charges. For a pet owner with a dog on monthly prescription thyroid medication ($45/month prescription), if the vet clinic is incorrectly taxing that prescription at an 8.5% combined rate, the owner is paying $3.83/month = $45.90/year in tax on an item that should be completely exempt. The verification is simple: look at your monthly vet bills, identify the prescription drug lines (they usually have 'Rx' or a prescription drug name you recognize), and divide the total tax on the bill by the applicable rate. If the implied taxable base includes those Rx lines, call the clinic. Most veterinary clinics will correct the configuration immediately and issue a credit for the overcharged amounts going back to the beginning of the prescription — since this is typically a systemic billing error affecting all clients on that medication, not just you."

Who Needs to Know Pet Tax Rules?

  • Florida pet owners with pets on therapeutic diets — Florida's exemption for therapeutic veterinary diets is one of the most consumer-valuable pet tax exemptions in the US. A cat with chronic kidney disease on a prescription renal diet may go through $50–$80 worth of prescription food per month. At Florida's approximately 7% combined rate, the exemption saves $3.50–$5.60 per month = $42–$67 per year on food alone. The key is ensuring the therapeutic diet is properly documented as a prescription at the point of purchase — either at the vet's office or at a pet store that accepts veterinary prescriptions for food
  • Texas pet owners who use grooming services — cosmetic grooming in Texas is taxable as an amusement service. A dog owner who spends $80/month on grooming in Houston (8.25% combined) pays $6.60/month = $79.20/year in grooming sales tax. The same owner who has their dog trimmed by a veterinarian for a medically documented reason (skin condition, post-surgical recovery) may qualify for the medical grooming exemption — a legitimate tax-free alternative for qualifying medical situations
  • New York pet owners who board their pets — boarding services are taxable in New York state, unlike in many other states. Pet owners who board their pets regularly for travel or work should be aware that boarding fees are subject to sales tax in New York — and that the tax applies whether the boarding is done at a kennel, a vet office, or in-home pet-sitting when it meets the definition of taxable boarding. Boarding combined with veterinary care is treated differently — verify with your specific boarding facility how they classify the service for tax purposes
  • Pet owners in states that tax vet services (Hawaii, New Mexico, South Dakota, Kentucky) — in these four states, even the professional veterinary service fee — the exam, the surgery, the diagnostics — is subject to tax. Pet owners in these states should factor the applicable tax rate into their budgeting for any veterinary procedure. A $2,000 surgery in Hawaii at 4.5% GET adds $90 in tax that the same surgery in California or Texas would not generate
  • Pet owners who buy prescription drugs for their pets online — prescription drugs for animals are exempt from sales tax in most states when dispensed by a veterinarian. But when a pet owner uses an online pet pharmacy (1-800-PetMeds, Chewy, Petco pharmacy) to fill the same prescription, the online retailer applies standard e-commerce tax rules based on the buyer's state. The exemption generally still applies for prescription drugs, but verify that the online pharmacy is correctly classifying the prescription vs OTC status of the product and applying the appropriate exemption
  • Pet owners considering adoption vs breeder purchase — understanding that pets from licensed breeders and pet stores are generally taxable as tangible personal property (with significant tax on high-priced purebreds), while nonprofit rescue adoption fees may be exempt or partially exempt as charitable contributions, is a relevant financial consideration in the choice between rescue adoption and breeder purchase — separate from all the other reasons to prefer one over the other
Smart Tip: How to Read a Vet Bill for Sales Tax Errors

The most common sales tax error on vet bills is applying tax to the entire invoice — including the professional service fee and prescription drug lines — when only the OTC products and food should be taxed. This happens because some veterinary practice management software applies tax to all charges by default unless each item is individually configured as taxable or exempt. Here is a quick verification approach: look at your vet bill and identify every line item. Circle the ones that should be taxable in your state: OTC products (non-prescription flea prevention, vitamins, dental products), pet food (all of it, unless you are in Florida with a prescription therapeutic diet), and any grooming if your state taxes it. Add those circled amounts. Multiply by your state's combined rate. Compare to the actual tax charged. If the actual tax is higher — particularly if it appears the exam fee or prescription drugs were taxed — ask the clinic's billing department to review the configuration for those specific items. Most veterinary clinics will correct this immediately, and the savings over a year of regular visits for a pet on ongoing medication can be meaningful.

Special Items and Edge Cases

CBD products for pets: CBD products for pets occupy a gray area in most states. Vermont's DOR specifically states that most CBD products sold for humans or animals are taxable and do not qualify for an exemption — because they are not FDA-approved as drugs or food. Unless a CBD product is specifically FDA-approved as a drug (very few are currently), it is treated as a taxable supplement or product rather than an exempt prescription drug. The same rule applies in most other states — CBD pet products are generally taxable regardless of health claims.

Service animals vs pets: Service animals — properly trained assistance dogs for individuals with disabilities — have different tax treatment than pets in virtually every state with specific service animal rules. New York exempts guide dogs, hearing dogs, and service dogs at purchase. Texas exempts guide dogs and herding dogs. Maine exempts seeing eye dog supplies. Florida exempts supplies for assistance animals for the visually impaired. Consumers who purchase or maintain service animals for disability accommodation should verify the specific exemptions available in their state and ensure they are applied at the point of purchase.

Compounded veterinary drugs: Veterinarians sometimes compound drugs — combining multiple substances to create a custom medication for an animal patient. Vermont's guidance addresses this directly: a compounded drug is exempt as a prescription drug if it bears the required "prescription only" label, creating a new prescription drug for tax purposes. If no additional labeling is on the final product, the components must be separately charged and the taxable ingredients taxed. This compounding rule applies similarly in other states — the exemption requires the compound to clearly qualify as a prescription drug under applicable labeling requirements.

Durable medical equipment (DME) for animals: In Vermont and some other states, durable medical equipment intended for animal use is exempt from sales tax. Vermont defines animal DME as items that can withstand repeated use, are primarily used to serve a medical purpose, and are generally not useful to an animal in the absence of illness or injury. This could include orthopedic braces, mobility aids, prosthetics, and similar medical devices for animals. Consumers who purchase medical equipment for injured or disabled pets should verify whether their state has an animal DME exemption before paying sales tax on potentially exempt equipment.

Final Verdict

Pet expenses in the US face a genuinely complex sales tax patchwork. The key rules that apply in most states: veterinary professional services are exempt (exam, surgery, diagnostics), prescription drugs dispensed by vets are exempt, pet food is taxable (even in grocery-exempt states because food exemptions apply only to human consumption), OTC pet products are taxable, and grooming/boarding rules vary widely by state.

The most actionable consumer insights: Florida pet owners with pets on prescription therapeutic diets should verify that food is correctly exempted at the vet or pet store. Texas pet owners can save grooming tax if the service is medically necessary and performed by a veterinarian. New York pet owners pay boarding tax but not vet service tax. Guide and service dog owners in most states pay no sales tax on the animal itself. Verify your vet bill using the reverse formula: Tax ÷ Rate = Implied Taxable Base — should equal only OTC products + pet food + any taxable grooming in your state, not the professional service fees or prescription drugs.