Tip Tax Savings Calculator for Pet Groomers

Pet groomers consistently earn tips from grateful pet owners — and those tips are now 100% exempt from federal income tax under the OBBBA. Whether you work at a pet salon, a mobile grooming van, or a veterinary office, your tip income is federally tax-free for 2025 through 2028.

Average Annual Tips
$10,000–$25,000
Federal Tax Savings Range
$1,200–$5,500
Exemption Period
2025–2028

Your pet groomer Tip Tax Calculator

Pre-filled with typical values for pet groomers. Adjust to match your actual earnings.

Your Annual Tax Savings

$2,510
per year in federal income tax on tips
Annual Tip Income
$21,000
Federal Tax Saved
$2,510
Marginal Federal Rate
12.0%
FICA Still Owed on Tips
$1,607
Annual Base Pay
$28,000
Total Annual Income
$49,000

Tax Notes for pet groomers

  • Pet groomer tips are among the most consistent in the personal care service industry.
  • Booth renters and independent groomers are self-employed — claim the deduction on Schedule C.
  • Employee groomers report tips on W-2 and claim the exemption on Form 1040.
  • Mobile groomers often earn higher tips due to the convenience premium.
  • FICA taxes still apply to all tip income.

Three Calculation Examples for pet groomers

Entry-Level Groomer — Pet Store

A new groomer at a national pet store chain. Tips average $8/hour — $11,520/year in tip income.

Hourly wage: $13Tips/hour: $8Hours/week: 30Weeks/year: 48
Annual tips: $11,520  |  Approx. federal savings at 22%: $2,534

Experienced Groomer — Pet Salon

An established groomer at a busy pet salon. Tips of $13/hour generate $22,750/year in tip income.

Hourly wage: $17Tips/hour: $13Hours/week: 35Weeks/year: 50
Annual tips: $22,750  |  Approx. federal savings at 22%: $5,005

Mobile Pet Groomer

A mobile groomer with a loyal client base. Premium convenience tips of $18/hour generate $27,000/year.

Hourly wage: $25Tips/hour: $18Hours/week: 30Weeks/year: 50
Annual tips: $27,000  |  Approx. federal savings at 22%: $5,940

Frequently Asked Questions

Do pet groomer tips qualify for the OBBBA exemption?

Yes. Voluntary tips given by pet owners to groomers for grooming services qualify for the federal income tax exemption under the OBBBA. Pet grooming is a personal care service where tipping is customary, and it is explicitly included in the list of qualifying tip occupations.

I own my own mobile grooming van — am I self-employed?

Yes. If you own your van and solicit your own clients, you are self-employed. Claim the OBBBA tip deduction on Schedule C along with your vehicle, equipment, and supply expenses. Your tip income and business deductions work together to reduce your taxable income.

Are tips for grooming cats treated the same as for dogs?

Yes. Tips received for any animal grooming service — dogs, cats, or other pets — qualify equally for the OBBBA exemption. The type of animal does not affect tip income eligibility.

What if I also sell products to clients — does that affect my tip exemption?

No. Tips received for grooming services are separate from retail product sales. Your tip income from services qualifies for the OBBBA exemption. Revenue from product sales is ordinary business income and is not affected by the tip exemption.

Related Tools and Resources

Use the full No Tax on Tips Calculator for any profession. Also check the No Tax on Overtime Calculator if you also work overtime hours, and the OBBBA FAQ for answers on eligibility, filing, and FICA taxes.

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