Will Virginia Tax Dog Grooming? The HB 900 Status, and What It Would Cost You

If you have seen headlines about Virginia taxing dog walking and pet grooming, you are not alone. HB 900 would add sales tax to pet care services for the first time. It did not pass in 2026, but the committee did not throw it out either, and most coverage missed that distinction.

Here's what we know, what it could mean for your grooming costs, and what happens next.

What Would Be Taxed?

Under HB 900, "companion animal care" becomes a taxable service. Thebill textdefines it in one sentence:

"Companion animal care, including grooming, boarding, walking, training, and feeding. Companion animal care does not include veterinary medical procedures or separately billed services that are required to be performed by or under the direction of a person licensed or certified by the Board of Veterinary Medicine."

In plain terms, that covers:

• Pet grooming
• Dog walking
• Pet boarding and kenneling
• Pet training
• Pet feeding services

What stays exempt: Veterinary medical procedures and services performed under licensed veterinary supervision would remain tax-free.

How Much Would It Add?

This is where almost every summary of HB 900 gets it wrong, including the one this post used to carry. Virginia's combined rate in Lynchburg is 5.3% today: 4.3% state plus 1% local. HB 900 does not apply that 5.3% to grooming. The bill cuts the state rate to 4% at the same time it widens what the tax covers, which puts a Lynchburg groom at 5%, not 5.3%.

That is a lower rate applied to a much wider list of things. The 0.385% and 0.615% transportation add ons in the bill apply to Northern Virginia and the Potomac and Rappahannock district. They do not reach Lynchburg.

A dog groomed every six weeks gets about nine grooms a year, so that works out to roughly $33 to $44 a year for most of my clients.

Why Is This Being Proposed?

HB 900 is part of a broader effort to expand Virginia's sales tax base beyond physical goods to include services. Supporters say:

• Virginia's tax system is built around physical goods and the economy has moved to services
• A wider base at a lower rate raises more money than the rate cut gives back
• Most of the new money is earmarked for transportation

The Department of Taxation put real numbers on it. In itsrevised fiscal impact statementdated February 4, 2026, widening the base was projected to raise $2.71 billion in fiscal year 2027, while cutting the state rate from 4.3% to 4% gives back $463.3 million. Net, the state expected about$2.55 billion in the first year, including $480.6 million going to localities. Pet grooming is a rounding error inside that. This was never a pet bill.

The same bill would tax haircuts, dry cleaning, home repairs, gym memberships and streaming, and would add a 20 cent fee on retail deliveries in Northern Virginia. Grooming is one line on a long list.

Concerns for Small Businesses

The National Federation of Independent Business raised concerns about the impact on small businesses. On February 10, 2026, the day after the subcommittee acted, NFIB State Director Julia Hammond said:

"We hope our leaders will remember that these are not luxury services. They are everyday services people rely on and the kinds of small businesses that exist in nearly every community in Virginia."
- Julia Hammond, NFIB State Director, February 10, 2026

My worry is the collecting, the filing and the record keeping. A one or two person salon does not have an accounting department. Four dollars on a groom is easy for a customer to absorb. The hours behind it land entirely on me.

What the Record Shows

A lot of coverage said HB 900 died at the crossover deadline in March. That is not what the record shows. Here is the official history from the Virginia Legislative Information System:

The distinction matters if you run a business that would have to collect this. A bill that dies has to be written and filed again by a delegate willing to carry it. A bill that is continued is still sitting in the committee, already drafted, already scored by the Department of Taxation, and it picks up where it left off. Lawmakers said at the time they planned to look at the proposals over the summer. HB 900 is the most likely starting point when they do.

How to Stay Informed

If you want to follow the bill or share your thoughts with your representatives:

• Track HB 900: Virginia Legislative Information System
• Find your delegate: Who's My Legislator?

What This Means for Fancy Pet Salon

Nothing changes right now. Grooming is tax free in Virginia today, and the price on your invoice is the price you pay. Nothing is being collected and nothing is being held back.

If HB 900 passes in 2027 in the form it is written now, a $75 groom becomes $78.75 and I would be the one collecting and remitting the $3.75. You would hear it from me before it ever showed up on an invoice.

The realistic window is January to March 2027. I watch the bill record directly rather than waiting for it to make the news, and I update the status line at the top of this page when it moves. If you want to weigh in before then, the summer before a session carries far more weight than the week of the vote.

Last verified August 18, 2026 against the Virginia Legislative Information System bill record and the Department of Taxation fiscal impact statement dated February 4, 2026. This post is for informational purposes only and is not tax or legal advice.