Canada allows eligible moving expenses to be deducted when a move is connected to a new work location, self-employment at a new location or qualifying full-time post-secondary study. The move must also satisfy CRA’s distance test.
The deduction is claimed on Line 21900 using Form T1-M, Moving Expenses Deduction.
CRA’s current rules are published at Line 21900 – Moving expenses.
The 40 km Rule
Your new home must generally be at least 40 kilometres closer, measured by the shortest usual public route, to your new work location or qualifying school than your old home was.
The rule compares the distance from each home to the new work or school location. It does not simply ask whether the old and new homes are 40 kilometres apart.
You Must Establish a New Home
CRA also requires the move to involve a new home that becomes the place where you ordinarily live.
A temporary stay near a work site while the person’s normal home remains somewhere else can be treated differently because the facts of residence matter.
Employees and Self-Employed Workers
For a work-related move, eligible moving expenses are generally deducted against employment or self-employment income earned at the new work location.
CRA does not allow those expenses to be shifted to unrelated income such as investment income or Employment Insurance benefits.
If eligible moving expenses exceed the eligible income from the new location in the year of the move, unused amounts can generally be carried forward and deducted against the same type of income from that location in a later year.
Employer Reimbursements
Expenses reimbursed by an employer generally cannot also be claimed personally unless the reimbursement is included in income or the moving-expense claim is reduced by the reimbursed amount as required by CRA’s rules.
CRA may ask for supporting information showing whether an employer reimbursed the costs being claimed.
Transportation and Storage Costs
Eligible costs can include transporting and storing household belongings during a qualifying move.
- moving-company charges
- packing and hauling
- in-transit storage
- insurance related to transportation and storage
Travel Expenses
Travel expenses for the taxpayer and members of the household can also qualify. Depending on the claim, these can include vehicle costs, meals and accommodation during the move.
CRA provides detailed and simplified methods for certain meal and vehicle expenses. Simplified per-kilometre rates can vary by province or territory and tax year, so the rate for the year of the move should be used.
Temporary Living Expenses: Up to 15 Days
Eligible temporary living costs near the old or new home can be claimed for a maximum of 15 days.
These costs can include temporary lodging and eligible meals for the taxpayer and members of the household.
Lease Cancellation Costs
A qualifying cost to cancel the lease on the old home can be deductible when it is incurred because of the move.
Ordinary rent that was already payable does not become a moving-expense deduction simply because the tenant relocates.
Incidental Moving Costs
CRA also lists certain incidental costs associated with a qualifying move, including some expenses to change an address on legal documents, replace driver’s licences or non-commercial vehicle permits, and connect or disconnect utilities.
Mail-forwarding charges are specifically listed by CRA as an ineligible moving expense.
Maintaining an Old Home While It Is for Sale
If the old home remains vacant after the move and reasonable efforts are made to sell it, CRA can allow up to $5,000 of eligible maintenance costs.
Depending on the circumstances, qualifying costs can include mortgage interest, property taxes, insurance premiums, heating and utilities during the eligible period.
Selling the Old Home
Eligible selling costs can include advertising, legal or notary fees, real-estate commissions and certain mortgage penalties paid because the mortgage was discharged early.
A financial loss on the sale of the home is not deductible as a moving expense.
Buying the New Home
Certain legal, notary and title-transfer costs related to buying the new home can qualify when the taxpayer or spouse or common-law partner sold the old home because of the move.
These purchase costs are not automatically deductible for every move involving a home purchase.
Expenses CRA Does Not Allow
- house-hunting trips before the move
- job-hunting trips to another city
- losses on the sale of the old home
- repairs or improvements made only to help sell the old home
- cleaning or repair costs required by a former landlord
- replacement of personal household items
- mail-forwarding charges
- appliance transformers or adaptors
- mortgage default insurance
Moving to Canada, Leaving Canada or Moving Outside Canada
CRA states that work-related moving expenses can sometimes apply to a move into Canada, out of Canada or between two locations outside Canada.
For these cases, the taxpayer generally must be a factual or deemed resident of Canada and must move from one place where they normally lived to another place where they normally live, while also meeting the work and 40 km requirements.
CRA’s eligibility tool confirms these additional conditions for cross-border moves.
Full-Time Students
A full-time post-secondary student can qualify for moving expenses when the 40 km rule is met, but the deduction is generally limited to taxable amounts from qualifying scholarships, fellowships, bursaries, research grants and certain prizes.
A student who moves for employment or self-employment can also qualify under the work-related rules, with the deduction tied to eligible income earned at the new work location.
Remote Work and a Personal Move
A personal decision to move to another city while keeping the same work location does not automatically create a deduction.
CRA’s rule requires a qualifying move connected with work, business or study and the new home must satisfy the 40 km test relative to the new work or school location.
For broader relocation costs in Alberta, see our Moving to Alberta in 2026 guide.
How to Claim the Deduction
Complete a separate Form T1-M for each eligible move and enter the allowable deduction on Line 21900 of the income tax and benefit return.
Supporting documents are generally kept rather than sent with the return unless CRA asks for them.
Documents to Keep
- moving-company invoices
- travel and lodging receipts
- meal or mileage records where applicable
- lease-cancellation documents
- proof of old and new addresses
- employment or school records showing the new location
- property-sale documents
- records of employer reimbursements or allowances
Moving Expenses 2026: Key Rules
| Rule | CRA Treatment |
|---|---|
| Distance test | New home generally must be at least 40 km closer to the new work location or qualifying school |
| Main form | Form T1-M |
| Tax return line | Line 21900 |
| Temporary living expenses | Up to 15 days |
| Vacant old-home maintenance | Up to $5,000 when CRA conditions are met |
| Employer reimbursement | Cannot normally be claimed twice |
| House-hunting trip | Not deductible |
| Loss on home sale | Not deductible |
Frequently Asked Questions
What is the 40 km rule?
The new home must generally be at least 40 kilometres closer, by the shortest usual public route, to the new work location or qualifying school than the old home was.
Can movers and storage be claimed?
They can be eligible when the move itself qualifies under CRA’s rules.
Can hotel and meal costs be claimed?
Eligible travel costs can qualify, and temporary living expenses near the old or new home can be claimed for up to 15 days.
Can employer-reimbursed costs also be deducted?
Generally not twice. The claim must reflect CRA’s rules for reimbursements and allowances.
Can a newcomer moving to Canada qualify?
Potentially, when the additional residence, work or study, ordinary-home and distance requirements for a cross-border move are satisfied.
Disclaimer: Moving-expense eligibility depends on the facts of the relocation, residence status, distance, income source and individual expenses. Confirm the current rules and supporting-document requirements with CRA for unusual or cross-border moves.
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