IRS Personal Services (TTOC)
Do pet groomers qualify for the No Tax on Tips deduction?
Pet groomers are on the IRS Treasury Tipped Occupation Code list, and grooming is a genuinely tip-customary trade — $5-20 per dog is standard, more for difficult dogs, matted coats, or same-day saves before a family event. The structure mirrors hair salons for humans: commission groomers at corporate chains (W-2), booth-rent groomers at independent shops (1099), and mobile groomers running their own van (Schedule C). All three qualify; the math differs.
Short answer
Yes. Pet groomers are on the IRS TTOC list. Voluntary tips from pet owners qualify for the federal No Tax on Tips deduction — up to $25,000 per year. Grooming fees, add-on charges (nail trim, teeth brushing, de-matting), and mobile-service fees are business revenue, not tips. Booth-rent and mobile groomers (1099) are capped at net self-employment income.
How much could you save?
Typical tip income for pet groomers.
Full-time groomers typically report $4,000-$12,000 in annual tip income. Corporate-chain commission groomers (PetSmart, Petco) see steady card tips through the POS. Independent and mobile groomers with loyal clientele see the higher end — repeat clients tip consistently and give December holiday tips like hair-salon clients do.
For pet groomers specifically
What counts as a qualified tip — and what doesn't.
✓ Qualifies
- Voluntary cash tips at pickup ($5-20 per dog is customary)
- Voluntary card tips through the salon POS tip prompt
- Venmo/Zelle tips from mobile-grooming clients
- Holiday tips from repeat clients (the December envelope pattern)
✗ Does not qualify
- Grooming fees or package prices (service revenue)
- Add-on charges you or the shop bill (de-matting, flea treatment, nail grind)
- Mobile-service or travel fees you charge
- Booth rent paid to the shop (business expense, reduces your SE net)
- Retail commissions on shampoo or accessory sales
A worked example
Brianna, a real-world pet groomer.
Brianna is a booth-rent groomer at an independent pet salon, 1099, single filer, MAGI $39,000. For the tax year, she logged $8,700 in qualified tips (per-dog tips + December holiday envelopes). She sits in the 12% federal marginal bracket.
- Deduction allowed: Full $8,700 deduction (net SE income of ~$37k supports it)
- Estimated savings: About $1,044 off federal income tax (SE tax still applies)
This is an illustrative example, not a guarantee. Your actual savings depend on your filing status, total income, state, and other deductions.
Questions specific to pet groomers
What other pet groomers ask.
The owner added $15 on the card reader when picking up their doodle. Qualified?
Yes — a voluntary tip through the POS is qualified tip income. Corporate-chain systems track these; verify the year-end tip total against your own log, because POS reports sometimes lump tips with service adjustments.
I charge a $25 de-matting fee for neglected coats. Is that tip-like since it is extra?
No. You set the fee and bill it — the client must pay it for the service. Only the voluntary amount the client adds beyond your total bill is a tip.
Mobile grooming: my van, my prices. Does the deduction still apply?
Yes. Mobile groomers are 1099/Schedule C — voluntary client tips qualify, capped at your net SE income. Van costs, fuel, and supplies reduce that net, so track expenses to know your cap.
A client tips me a bag of premium dog treats for my own dog. Count?
No — non-monetary tips are excluded from §224. Cash, card, check, or app payment only.
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Track every shift
The deduction is real money — if you can prove your tips.
Qualified Tips logs each shift the moment it ends — timestamped, exportable, IRS-aligned.