Would New Jersey’s Proposed $900 Pet Tax Credit Replace the Need for Pet Insurance? | Insurify

Newly introduced New Jersey legislation would give pet owners a tax credit of up to $600 annually to help cover veterinary costs and $300 for everyday pet expenses. The bill is a long way from approval, but even if it passes, pet parents may want to think twice before canceling their pet's health insurance, experts say.

"New Jersey is an expensive state for veterinary care," says Julia Taliesin, a licensed insurance agent and economic analyst for Insurify, an insurance-comparison marketplace. "CareCredit data puts New Jersey's average cost for a vet visit as the seventh most expensive in the country. And in any state, one emergency vet visit could easily exceed $600."

But, Taliesin points out, New Jersey is middle-of-the-pack in terms of pet insurance costs.

"In New Jersey, accident and illness pet insurance averages $552 annually for dogs and $360 annually for cats," she says, citing Insurify's quote data. "Those averages rank 24th among all 50 states and Washington, D.C."

The proposed New Jersey pet tax credit

Under the proposed legislation, which Assemblyman Alex Sauickie introduced on May 7, New Jersey pet owners would be able to receive a credit of up to $300 for everyday pet expenses, like food, toys, grooming supplies, litter, collars, harnesses, and more. The credit for veterinary care would be up to $600 and would apply to annual exams, medicine, emergency care, diagnostic testing, and more.

To claim the credit, New Jersey pet parents would have to submit their state income tax returns with documentation of their pet care expenses. Only dogs and cats kept as companion animals would be eligible for the credit.

While the bill has grabbed attention and headlines in the Northeast, its future is uncertain — and potentially very brief. It's currently with the NJ Assembly Commerce and Economic Development Committee for review.

Similar legislation, which would have brought a $2,500 veterinary expense deduction to the table in New Jersey's 2024 legislative season, appears to have stalled before it was ever introduced.

Pet-related costs continue to rise

The costs of caring for a pet have risen substantially since 2022. Total costs have climbed nearly 12% for dogs and more than 19% for cats in the last four years, according to the Synchrony Pet Lifetime of Care 2025 report.

The cost to care for a cat over a 15-year lifespan ranges from $20,073 to $47,106, the report states. For dogs, the costs over 15 years range from $22,125 to $60,602.

Cost misconceptions could compound the financial burden of caring for a pet. Synchrony's report also notes that most pet owners severely underestimate their pets' lifetime expenses, assuming lifetime costs of just $5,735 for cats and $8,158 for dogs.

By comparison, New Jersey's pet insurance costs have remained fairly stable for the past year, Insurify data shows. In April 2025, the average cost of pet insurance in the Garden State was $47 per month for dogs and $28 for cats. As of April 2026, New Jersey's averages were $46 and $29 per month, respectively.

And, while New Jersey's averages are slightly higher than the national averages of $43 for dogs and $23 for cats, they're still far from the most expensive in the country. States with a dearth of veterinary practices, like Alaska ($58 monthly for dogs, $30 for cats), and higher overall cost of living, like Washington, D.C., ($52/$28) and Massachusetts ($55/$31), have much higher pet insurance costs.

What's next: Strongly worded criticism and a caution to consumers

The proposed legislation has generated headlines and debate throughout the tri-state area of New Jersey, New York, and Pennsylvania. And at least one veteran New Jersey broadcaster has said the state legislature has more important financial issues to tackle.

"On paper it sounds reasonable," Eric "EJ" Johnson wrote on the New Jersey 101.5 website, noting he's a pet owner who's written his share of checks for veterinary care. "But here is my problem with it. Pets are a choice. Aging in New Jersey is not."

State legislators would better serve New Jerseyans by turning their attention to preserving the Stay NJ property tax relief program, Johnson wrote. The tax benefit cuts property taxes for New Jersey seniors 65 and older by up to 50%. The state Senate and Assembly are considering a budget that would reduce the benefit amount from $6,500 to $4,000 for seniors, he noted.

Taliesin also cautions New Jersey pet parents from banking on the tax credit, even if it does become law.

"Every little bit helps when we're juggling pet expenses along with other rising costs," she says. "But no one should think a $600 tax credit will cover all their pet's veterinary costs in a year. That amount may pay a sizable chunk of the premium for people with young, generally healthy pets. But for better financial security and the health of their pet, New Jersey pet owners should think twice before dropping their pet insurance coverage."

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