If you’re relocating in Canada for work or to attend full-time post-secondary school, you may be eligible for a tax deduction. The Canada Revenue Agency (CRA) provides tax relief for eligible moving expenses, but there are specific rules to follow. Here’s what you need to know about the moving tax credit in Canada: Are moving expenses tax-deductible:
Are Moving Expenses Tax Deductible in 2026?
Yes, moving expenses can be deducted on your 2026 tax return if you meet certain requirements. The main conditions are:
- Purpose of Move
You must move to start a new job, run a business, or be a full-time student in a post-secondary program at a university, college, or other educational institution.
- Distance
Your new residence must be at least 40 kilometres closer (by the shortest public route) to your new work or school location than your old residence was.
If you meet both these criteria, you can claim eligible moving expenses against the income you earned at the new location.
The 40-Kilometre Rule: Understanding the Distance Test
According to CRA guidelines, your new home must be at least 40 kilometres closer to your new place of employment or study than your old home was. The calculation is based on the shortest available public route.
Example:
Old home to new job: 70 km
New home to new job: 25 km
Distance reduction: 70 km – 25 km = 45 km
In this case, the move reduced the commute by more than 40 km and passes the distance test.
What Moving Expenses Are Deductible?
Eligible moving expenses can include:
- Transportation and storage costs (moving trucks, movers, storage units)
- Travel expenses (meals, hotel stays, vehicle expenses for you and your family)
- Temporary living expenses (up to 15 days)
- Costs for cancelling a lease or selling your old home
- Utility connection and disconnection fees
You must keep all receipts and documentation to support your claim.
How to Claim Moving Expenses on Your Tax Return
- Use Form T1-M, “Moving Expenses Deduction,” to list your eligible costs.
- Enter the deduction on line 21900 of your income tax return.
- You can only claim expenses against income earned at the new location (employment, self-employment, or scholarships).
Final Tips
Only moves within Canada or from outside Canada to take up residence for work or study in Canada are eligible. If your employer reimburses your moving costs, only expenses not covered by the reimbursement can be claimed.
The 40-kilometre rule is strictly enforced—double-check your distances before claiming. For more details, refer to the CRA’s official guidelines on moving expenses. To get a moving quote, contact Premiere Van Lines.