All qualified occupations

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.

Run your own number →

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.

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.