Canada moving expenses deduction: distance and costs
The moving expenses deduction connects an eligible move with the distance to a new work location or school and the income against which expenses can be deducted.
On this page
- Distance requirement
- New home at least 40 kilometres closer to the new work location or school by the shortest public route.CRA, moving distance requirement
- Temporary living costs
- Meals and temporary lodging for a maximum of 15 days.CRA, eligible moving costs
- Vacant former home
- Up to $5,000 for qualifying maintenance costs while reasonable efforts are made to sell.CRA, vacant home costs
The distance test compares homes
CRA's current page is for tax year 2025, which is the latest published tax year. It states that a claim generally requires a move to a new home for work, business or full-time post-secondary study. The new home must be at least 40 kilometres closer to the new work location or school by the shortest public route. It must become the place where the claimant normally lives; moves are generally within Canada, with separate rules for international moves. CRA, moving purpose and distance test (opens in a new tab).
Examples of eligible costs
Eligible costs include transporting and storing household items, travel to the new home, cancelling the old lease and meals and temporary lodging near the old or new home for up to 15 days. Qualifying costs to maintain a vacant former home are limited to $5,000 while reasonable efforts are made to sell it. House-hunting trips, losses on the home sale and mail-forwarding costs are ineligible. CRA, eligible and ineligible moving costs (opens in a new tab).
Income limits and reimbursements
For a work or business move, eligible expenses are deductible from employment or self-employment income earned at the new work location, rather than investment income or EI benefits. A full-time student's study-related claim is limited to taxable scholarships, fellowships, bursaries, certain prizes or research grants. Unused eligible expenses can be carried forward against the corresponding eligible income, but cannot be carried back. CRA, moving expenses and eligible income (opens in a new tab).
If an employer reimburses eligible moving expenses or pays an allowance, the claimant must either include that amount in income or reduce the expenses by the amount received. Form T1-M calculates the deduction reported on line 21900, with a separate form for each eligible move. CRA, reimbursements and moving expense claims (opens in a new tab).
Scope of this explanation
This is general information about Canada, not personal tax or financial advice. This page does not assess international residence rules, validate a route or receipt, or calculate a deduction or tax saving. The government does not endorse this website.