Running a grooming business means you have significant tax deductions available. Here's a plain-English guide to what you can write off — so you keep more of what you earn.
Taxes are one of the least exciting parts of running a grooming business, but understanding your deductions can save you thousands of dollars per year. This isn't tax advice — you should work with a qualified tax professional for your specific situation — but here's a plain-English overview of the deductions most grooming business owners can legitimately claim.
For mobile groomers, your vehicle is your biggest deduction. You have two options for calculating the deduction:
Standard mileage rate: In 2024, the IRS standard mileage rate was 67 cents per mile for business use. Track every mile you drive for business — to client locations, supply runs, training, and business-related errands. An app like MileIQ or Everlance makes this easy.
Actual expense method: Instead of mileage, you deduct the actual costs of operating the vehicle: fuel, insurance, maintenance, repairs, registration, and depreciation, prorated by business use percentage. This often yields a larger deduction for mobile groomers who use their van exclusively for business.
You can only use one method, and you generally need to choose in your first year. Talk to your accountant about which makes more sense for your situation. If your van is used exclusively for business (not personal use), the actual expense method is usually significantly better.
Any equipment you purchase for your grooming business is deductible. This includes:
Larger equipment purchases can be deducted in full in the year of purchase using Section 179 expensing, rather than being depreciated over several years. For a mobile groomer buying a new van or major equipment, this can be a substantial first-year deduction.
Your liability insurance, commercial auto insurance, and any other business insurance premiums are fully deductible. This is straightforward — keep your policy documents and payment records.
Any software you use to run your business is deductible. This includes:
Payment processing fees — the percentage Stripe or Square takes on each transaction — are deductible as a business expense. These can add up to several hundred dollars per year for a busy groomer.
Money you spend to promote your business is deductible:
Grooming classes, certification programs, workshops, trade show attendance, and professional books or videos related to your business are deductible. The IRS allows deductions for education that maintains or improves skills in your current profession. This includes grooming certifications, breed-specific training, and business management courses.
If you use your phone for business (which essentially all groomers do), the business-use percentage of your phone bill is deductible. If you use your phone about 70% for business, you can deduct 70% of your bill. Keep it reasonable and documented — if the IRS questions it, you want to be able to justify your percentage.
If you use part of your home exclusively and regularly for business — scheduling appointments, doing bookkeeping, storing supplies — you may qualify for the home office deduction. The simplified method allows $5 per square foot up to 300 square feet. This only applies if the space is used exclusively for business, not a shared living area.
When you're self-employed, you pay both the employee and employer portions of Social Security and Medicare taxes (15.3% combined). The good news: you can deduct half of your self-employment tax from your gross income. This isn't something you need to calculate manually — your tax software or accountant will handle it — but it's worth knowing it exists.
The best tax position comes from organized record-keeping throughout the year, not a frantic scramble in April. Keep digital copies of every receipt. Use a business bank account and credit card — never mix business and personal expenses. Review your profit and loss monthly. A good bookkeeper costs $100–$200 per month and saves most small business owners significantly more than that in taxes and headaches. It's almost always worth it.
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