If you moved in 2024 to start a new job, run a business, or attend full-time post-secondary education, you may be able to deduct your moving expenses from your Canadian taxes. The moving expense deduction is often overlooked, but it can be worth thousands of dollars for those who qualify.
You can claim moving expenses if you moved to a new home to:
Both the starting of new employment and student moves qualify. Personal moves, retirement moves, or moves made purely for lifestyle reasons do not qualify even if you happened to get a job after moving.
The new home must be at least 40 km closer to the new workplace or school than the old home was. Distances are measured in terms of the shortest normal route available to the general public — not straight-line distances.
Examples: If your old home was 5 km from your new workplace and your new home is 2 km away, the difference is only 3 km and you do not qualify. If your old home was 100 km from your new workplace and your new home is 5 km away, the difference is 95 km and you qualify easily.
You can use Google Maps or a similar tool to measure route distances. Keep documentation of your old and new addresses and the measured distances in case the CRA asks.
The CRA allows a broad range of moving costs:
Professional movers, truck rental, gas for your own vehicle, and storage costs for goods during the move are all eligible. If you drive yourself, you can either claim actual vehicle expenses (gas, oil, insurance, maintenance) or use the CRA's simplified flat-rate method (cents per kilometre driven).
Travel costs for you and your household members during the move including accommodation and meals. You can use actual costs or the simplified meal rate of $23 per person per meal (up to three meals per day). Accommodation during travel and during a waiting period before your new home is ready is eligible.
Temporary living expenses at your new location while waiting for your permanent home to be available. This is limited to a maximum of 15 days and applies to both meals and lodging.
Expenses to sell your old home qualify, including real estate commission, legal fees, advertising costs, and mortgage prepayment penalties if you had to break your mortgage. This can be one of the largest eligible deductions for homeowners.
Legal or notarial fees and land transfer taxes paid when buying a new home at your new location. You can only claim these if you sold your old home because of the move.
If you had to break a rental lease at your old location to move, the lease cancellation penalty is an eligible moving expense.
The cost of revising legal documents such as changing a will, driver's license, vehicle registration, or other documents to reflect your new address is eligible.
Moving expenses do not include costs to clean or repair your old home, losses from selling your old home at less than you paid, mail redirection costs, expenses for house-hunting trips before you moved, or any expenses your employer reimbursed.
Moving expenses can only be deducted against income earned at the new location. You cannot deduct more moving expenses than the income you earned from the new employment or business in that year. Unused moving expenses can be carried forward to the next year when you have more eligible income at the new location.
For students, moving expenses are deductible against scholarship, bursary, or research grant income received at the new location.
Complete Form T1-M (Moving Expenses Deduction) and enter the final deduction on line 21900 of your return. Tax software prompts you for moving expenses and calculates the deduction. Keep all receipts, contracts, and invoices for at least 6 years.
If you moved more than once in the year, you can claim eligible expenses for each qualifying move. Each move is evaluated independently against the 40 km rule and income earned at the new location.
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