Are Moving Expenses Tax Deductible?

Service Overview (Intro)

Are Moving Expenses Tax Deductible in Canada?

A common question during relocation planning is whether moving expenses are tax-deductible. In Canada, the answer is yes—but only in specific situations and under clear rules set by the CRA. Not every move qualifies, and understanding the conditions can save you from costly filing mistakes.

This guide explains when you can claim a tax deduction for movingexpenses, which expenses are eligible, and how claiming moving expenses in Canada actually works.

Eligibility

When Are Moving Expenses Tax Deductible?

You may be able to deduct moving expenses if your move was primarily to:

• Start a new job or transfer to a new work location
• Run a business or start a business at a new location
• Attend post-secondary education as a full-time student

In addition, your new home must be at least 40 kilometres closer (by the shortest public route) to your new work or school than your previous residence. If this distance test is not met, the expenses are not deductible.

Note: 

Moving expenses can only be deducted against income earned at the new work or school location and cannot be used to offset investment income or employment insurance benefits.

Sources: canada.ca 

Eligible Expenses

What Moving Expenses Can You Claim?

If you qualify, the CRA allows you to deduct several common relocation costs, including:

• Professional moving services and transportation
• Packing and unpacking costs
• Temporary storage fees
• Travel expenses (vehicle, fuel, meals, and lodging)
• Lease cancellation penalties
• Certain costs related to selling your old home (such as real estate commissions and legal fees)

Services such as professional moving or delivery services may qualify when they are used to transport household items as part of an eligible relocation.

Non Eligible Expenses

What Moving Expenses Are Not Deductible?

Not all relocation costs can be claimed. Common non-deductible expenses include:

• Home improvements or renovations
• Security deposits
• Real estate commissions for buying a new home
• Losses from selling your home
• General living expenses after the move

Optional services such as junk removal or furniture upgrades are generally not eligible unless they are directly tied to moving requirements. At your moving estimate, if you mention these services, we can add those expenses to your moving bill.

How to Claim

How to Claim Moving Expenses in Canada

To claim moving expenses, you must file CRA Form T1-M and deduct eligible costs from the income earned at your new work or school location. Moving expenses cannot be used to create or increase a loss.

• Keep all invoices and receipts
• Document distances and addresses
• Ensure expenses match your eligible income source

Pro Tip: The CRA “Simplified Method”

Lost some receipts? The CRA allows a Simplified Method for claiming travel-related moving expenses. Instead of keeping itemized receipts for meals and vehicle costs, you can claim a flat daily meal rate (approximately $23 per meal) and a per-kilometre rate for vehicle use.

Rates change yearly, so always check the CRA website for the current tax year. This method is especially helpful for long-distance or multi-day moves.

If you used reusable moving box rentals or moving supplies, these expenses may also be claimable when used for a qualifying move.

Practical Tips & FAQs

Important Tips Before Claiming a Tax Deduction for Moving

• Only expenses related to eligible income can be claimed
• Keep digital and paper copies of receipts
• Claim expenses in the tax year they were paid
• Consult a tax professional if your situation is complex

Planning ahead helps avoid filing issues later. You may also want to review moving planning guides before finalizing your relocation.

FAQs: Moving Expenses and Tax Deductions

Are moving expenses tax deductible for everyone?

No. Only moves related to work, business, or education that meet the CRA distance requirement qualify.

Can I claim moving expenses if I move within the same city?

Usually no, unless the move brings you at least 40 kilometres closer to your new work or school location.

Can students claim moving expenses?

Yes, but with an important condition. Students can only deduct moving expenses against taxable income earned at the new location, such as employment income, grants, or taxable bursaries. Moving expenses cannot be claimed against tax-exempt scholarships.

If you do not have enough income in the current year, the CRA allows you to carry forward unused moving expenses to future tax years.

Do I need receipts to claim moving expenses?

Yes. Receipts are required unless you are using the CRA Simplified Method for travel-related expenses.

Final Thoughts: Claiming Moving Expenses in Canada

So, are moving expenses tax deductible? In many cases, yes—but only when CRA conditions are met. Understanding eligibility rules and keeping proper records is the key to a successful claim.

If you are planning a move and want clarity around costs, start with a moving estimate or reach out through our contact page.