Moving expenses are tax deductible in cases where you're moving for employment or education. This is a very convenient strategy for saving money on your taxes.
When this happens, you can claim the amount spent on moving against your taxable income, reducing how much tax you need to pay at tax time. Tax software can help you with these calculations, or you can hire an accountant if your situation is more complex.
Below, we discuss the qualifying criteria to consider when claiming moving expenses, plus details regarding the specific things you can claim, and more
Key Takeaways
- If you're moving so you can be closer to your job or school, you can deduct moving expenses from your taxes.
- Deducting moving expenses can save you a lot of money during the tax season.
- To be eligible, you'll need to move at least 40 km closer to your new job or school.
Situations when moving expenses are tax deductible
Whether your moving expenses are tax deductible in Canada largely depends on the reason you’re moving.
Eligible expenses related to your move can be tax deductible if you’re moving to:
- Start a business or a job in a new location
- Attend university or post-secondary school as a full-time student
If you’re moving for personal reasons, such as downsizing or because you want more space, you don’t like your neighbourhood, or you’re moving in with a friend, parent, or partner, the expenses related to your move will not be tax deductible.
Who can claim moving expenses?
To qualify for moving expense tax deductions, you must be moving for education or work, and meet all of the following criteria for your situation:
| Situation | Eligibility details |
|---|---|
| Moving for work | * Must be 40 km closer to your employer * Must deduct expenses from employment income, not investment income * Must settle at your new residence in Canada |
| Moving for studies | * Must be 40 km closer to your school * Must deduct your expenses from financial aid, such as scholarships, that are included in your income * Must be enrolled at a post-secondary institute as a full-time student (60% course load) * Must establish new residence as your home |
Note that the 40 km rule is "by the shortest public route," according to the CRA.
Students can also claim moving expenses for a job-related move against their employment income. If you move multiple times in a year, each move is evaluated separately.
Employed vs. self-employed
If you're self-employed, things are a little different in that moving expenses can only be deducted if you earn your income in the new location. Any other income, like investment or employment insurance, won't count as deductible income.
Any reimbursements or allowances for your moving expenses can only be claimed if it's included in your income or the money goes directly into reducing your moving costs.
Are you a full-time student?
If you're a full-time student, you can claim moving expenses paid at the start of an academic period so long as you meet all of the other eligibility requirements.
Co-op students can also claim moving expenses when moving back after a work semester. Again, you'll need to meet the other terms of eligibility to do so.
Students should be sure to select the correct province when filing taxes. In most cases, you’ll be considered a resident of your parents’ or guardians’ province – not the province where you attend school. Your province will determine your tax rate as well as the government benefits you’re eligible to receive.
What moving expenses are tax deductible?
Even if your move qualifies under the stipulations listed above, not every moving-related expense can be claimed as a tax deduction.
Here’s a list of common moving expenses and clarification as to whether they’re eligible.
Tax deductible moving expenses
- Vehicle expenses
- Accommodations and meals (for a max of 15 days)
- Transportation costs
- Storage costs
- Charges for cancelling your lease
- Cost of maintaining your current home while it’s vacant (to a max of $5,000)
- Costs associated with selling your old home (advertising, legal/realtor fees, mortgage penalty)
- Costs associated with buying your new home (legal/notary fees, transfer taxes)
- Changing address and replacing select documents, such as driver's license
- Utility management
Non-deductible moving expenses
- Losses incurred on the home you’ve sold
- Costs associated with job-hunting or house-hunting in the new area
- Mail forwarding
- Expenses related to making your current home more attractive for the sale
- Cleaning expenses if you’re leaving a rental home
- Mortgage default insurance
- Costs of specific items (damaged or lost goods, transformers/adapters for appliances, etc.)
- GST/HST from new home purchase
- Cost of moving a mobile home (unless the cost of moving personal items in the mobile home is less than moving them separately)
- Expenses you were reimbursed for by your employer
It’s important to keep track of your expenses and hold on to any documentation, such as receipts, in order for the expense to be an eligible tax deduction.
You can deduct expenses for yourself and your family, if applicable, even if you move at different times.
How do I claim moving expenses on my tax return?
The Form T1-M, Moving Expense Deduction is used to calculate and claim moving expenses. This will then go on line 21900 in your tax return.
You won't need to attach any receipts, nor will you need to attach the T1-M, but you should definitely keep them handy if the CRA follows up on your claim.
How to calculate moving expenses
Generally, you would claim the moving expenses for the year that you paid them. For example, if you moved in 2024, but didn’t pay for some expenses until 2025, you would claim these expenses against your 2025 income. You can’t claim 2025 expenses on your 2024 tax return.
Carrying forward your moving expenses
If your moving costs exceed the income you’ve made in the tax year, you can carry them forward to the next year.
This means you can deduct the amount you carried forward in a future tax year, lowering the amount you pay in taxes.
Calculating moving expenses using the simplified method or detailed method
You can calculate meal and vehicle expenses in one of 2 ways:
- Simple: Flat rate for meals per person, kilometer x provincial rate (cents/km)
- Detailed: Claim the actual amount spent
If you’ve received reimbursement for the costs related to your move, you must either add this to your income or deduct it from your total moving expenses.
FAQ
Are moving expenses tax deductible in Canada?
These can be claimed in some situations. If you’re starting a business, accepting a job in a new location, or attending a new school (that's at least 40 km closer) full-time, you can deduct moving expenses from your taxes.
Are moving expenses tax deductible for retirees?
The same tax rules apply to all Canadians, including retirees. Therefore, if retirees are moving for personal reasons that are unrelated to employment, self-employment, or full-time education, their moving expenses don't qualify for tax deductions.
Which moving expenses are tax deductible in Canada?
There are many expenses that are eligible for tax deduction and some that aren't. The comprehensive list of moving expenses above shows which things are tax deductible and which aren't – but it boils down to the reasons behind the move.
What is classified as a moving expense?
Moving expenses may include the costs of transportation and storage, which could mean paying movers, renting a truck, purchasing packing supplies, etc. It can also include expenses like accommodation costs, meals, various vehicle expenses, and more.
Can immigrants to Canada claim moving expenses?
In general, you cannot claim moving expenses if you’re an immigrant relocating to Canada. An exception would be if you’re relocating to attend post-secondary school or other educational institution. Consider a newcomer bank account if you’re relocating.
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