Moving Expense Deduction
Who can deduct moving expenses, what counts, and the 40 km rule.
The short version
- You can deduct moving costs if you moved for a new job, a business or full-time post-secondary studies, and your new home is at least 40 km closer (by the shortest public route) to the new work or school.
- Deductible: movers and storage, travel for the family, up to 15 days of temporary lodging and meals, the costs of selling your old home or breaking a lease, and up to $5,000 to maintain the empty old home while it sells.
- Not deductible: house-hunting trips, repairs to make the old home sell, and the value of your own labour.
- The deduction can't exceed the income you earn at the new location. Unused amounts carry forward to next year.
- Claim on line 21900 with form T1-M. Students can only deduct against scholarship or research income, in most cases.
Moving Expense Tax Deduction Canada
Moving is the second most stressful thing people do, after renovating, and both involve finding out what was in the basement. The good news: if the move was for work or school, the tax system pays back part of the bill. It's a deduction, so it's worth your marginal tax rate, and on a $15,000 move that can be $4,000 or more.
Do You Qualify?
- Why you moved: to work at a new location (same employer or new), to run a business at a new location, or to study full time at a post-secondary institution.
- The 40 km test: your new home must be at least 40 km closer to the new work or school than your old home, measured by the shortest normal route, not as the crow flies.
- Where: both homes in Canada, in most cases.
Moved across town for a nicer kitchen? No deduction. Moved from Barrie to Ottawa for a new job? Probably yes.
What You Can Deduct
| Deductible | Not deductible |
|---|---|
| Movers, packing, hauling, in-transit storage and insurance | House-hunting trips before the move |
| Travel for you and your family: vehicle, meals and lodging on the way | Repairs or upgrades to help the old home sell |
| Up to 15 days of meals and temporary lodging near either home | Mail forwarding, cleaning a rental you're leaving |
| Real estate commission, legal fees and advertising to sell the old home (the sale itself is usually tax-free; see real estate tax) | The loss on selling your old home |
| Legal fees and land transfer tax on the new home, if you sold the old one because of the move | Expenses your employer reimbursed |
| Up to $5,000 of interest, property tax, insurance and utilities on the empty old home while it's for sale | |
| Lease cancellation costs; changing your address on documents; utility hook-ups |
Vehicle and meal costs can be claimed with receipts (detailed method) or CRA's flat rates (simplified method), which change each year.
How much of your move is deductible?
Tell the assistant where you moved from and to, why, and roughly what it cost. It checks the 40 km test, lists the deductible items, and estimates the tax saved.
The Income Limit
You can only deduct moving costs against employment or self-employment income earned at the new location. If you moved in November, you'll have little income there that year; the unused amount carries forward and can be deducted next year. Students deduct against taxable scholarships or research grants, which is why most students can't use it. Their tuition is covered under tax credits instead. Other deductions are listed on Canadian tax deductions.
Employer Paid Some of It?
If your employer reimbursed the move, you can only deduct what you paid yourself. If the employer gave you an allowance instead (a flat amount you don't account for), it's generally taxable, and you can then deduct your actual costs. Check your T4 for a taxable benefit.
Keep the Paper
Moving expenses are one of the claims CRA reviews. Keep the mover's invoice, receipts for lodging and travel, the sale documents for the old home, and proof of the new job or school. See what tax receipts to keep. Before you file, Return Check checks the 40 km test and the income limit, the two places claims fail.
Moving Expense Questions
Can I deduct moving expenses in Canada?
Yes, if you moved for work, a business or full-time post-secondary study, and your new home is at least 40 km closer to the new work or school by the shortest public route.
What moving expenses are deductible?
Movers and storage, travel for your household, up to 15 days of temporary lodging and meals, costs of selling your old home or cancelling a lease, some costs of buying the new home if you sold the old one, and up to $5,000 to maintain the vacant old home.
Can I deduct moving expenses if my employer paid?
Only the part you paid yourself and were not reimbursed for.
What if my moving expenses are more than my income at the new location?
You can carry the unused amount forward and deduct it against income from the new location in a later year.
Are house-hunting trips deductible?
No. Trips to look for a new home before the move are not deductible.
Sources: CRA, Line 21900 Moving expenses; form T1-M. Checked October 2026. The tax-saved example is approximate.
Last reviewed October 4, 2026 against CRA and Government of Canada sources. How we check our facts.