Budget 2027: How much could pet owners save under the new pet tax relief?

Pet owners could soon claim tax relief on adoption, vaccination and sterilisation expenses under a proposal announced in Budget 2027. — Picture by Choo Choy May

By Soo Wern Jun

First Published: Friday, 30 Oct 2026 7:00 AM MYT

KUALA LUMPUR, Oct 30 — Pet owners could soon claim tax relief on adoption, vaccination and sterilisation expenses under a proposal announced in Budget 2027.

The move is aimed at helping pet owners offset some of the costs associated with caring for animals, from routine vaccinations to one-off expenses such as adoption and sterilisation.

Pet ownership costs have gradually risen over the years and, for some households, have become a growing part of monthly spending.

Instead of creating a separate allowance, the proposed relief would fall under the existing RM2,500 lifestyle tax relief limit.

The actual tax savings would depend on eligible spending, the taxpayer's applicable income tax rate and how much of the relief limit remains unused.

What pet owners are paying

Published fees from animal welfare organisations and veterinary providers offer an indication of what pet owners might pay.

Costs vary according to the animal, type of vaccine, size, sex and services included.

All figures are illustrative examples from selected published price lists, not standard rates or national averages.

Actual fees may vary by provider, location, animal and services required.

Adoption fees may include vaccination and sterilisation, so pet owners should avoid counting included services again as separate expenses.

As a pet owner, Diyana Malek said that unless her cat falls sick, she hardly spends anything on it apart from food and supplements.

“Even tick or flea medication could cost hundreds, depending on the size of the cat or dog. The prices of this medication vary.

“I send my cat to the veterinary clinic for showers. The price for that follows the weight of the cat and that starts from RM80.

“So this tax relief helps, it takes off a reasonable load,” Diyana said when contacted by Malay Mail.

The price of an average tick/flea medication ranges from RM60 to RM92, depending on the brand.

How much could pet owners save?

Using published prices as an illustration, a household with two cats and one dog could incur the following costs for vaccination and sterilisation.

If the full RM570 qualified for tax relief, the potential tax savings would depend on the taxpayer’s applicable marginal tax rate:

• 11 per cent = RM62.70 
• 18 per cent = RM102.60

These are illustrative estimates, not guaranteed savings. The actual benefit would depend on the taxpayer’s chargeable income, applicable tax rate, eligible expenses and how much of the RM2,500 lifestyle relief limit remains unused.

The calculation also assumes the household pays the listed fees separately.

It does not include adoption costs or account for any vaccination or sterilisation services already covered by an adoption fee.

What pet owners should know

The proposed relief would be included within the existing RM2,500 lifestyle tax relief limit, which also covers other eligible expenses.

The proposed relief would be included within the existing RM2,500 lifestyle tax relief limit, which also covers other eligible expenses. — Picture by Choo Choy May

It would not give pet owners an additional RM2,500 allowance solely for animal care.

This means taxpayers who have already used the full limit may not receive additional relief from their pet-related expenses.

The proposal covers eligible vaccination and sterilisation services provided by registered veterinary services, as well as the cost of adopting a rescued pet from a registered animal shelter.

Since the detailed eligibility conditions and documentation requirements have yet to be announced, pet owners should check their claims against the final rules before submitting them.