Moving Expense Rules and Calculations

Getting Started with Moving Expenses

Moving for work or school can be expensive, but the tax system offers some relief if your move meets certain conditions. If you relocated to start a new job, run a business, or attend post-secondary education, you may be able to claim eligible moving expenses to reduce your tax bill. This guide walks you through the rules, methods of claiming, and what happens if you are reimbursed or have unused amounts.

When Are Moving Expenses Deductible?

To qualify, your new home must be at least 40 kilometers closer to your new work or school location. Eligible moves include relocating for employment, starting a business, or enrolling as a full-time student in a recognized post-secondary program. If you meet the criteria, you can deduct a range of expenses related to the move from your income at tax time.

Why Moving Expenses Matter

Relocating can involve large one-time costs. The ability to claim these expenses on your tax return can ease the financial impact and help you make a smoother transition. However, many people are unsure which costs qualify, how to calculate their claim, or what to do if their employer reimburses part of the move.

Understanding your options ensures you do not miss out on savings or make a claim that could later be denied.

The benefits of understanding moving expenses

• Reduce your taxable income by claiming eligible relocation costs

• Choose between the simplified or detailed method based on your situation

• Understand how reimbursements affect your ability to claim

• Know whether you can carry forward unused amounts to future years

• Stay compliant by keeping the necessary documentation

Make the Most of Your Move

Moving can be stressful, but claiming your eligible expenses should not be. With a clear understanding of the rules, methods, and documentation required, you can complete your move with greater financial confidence and avoid missing out on tax savings.

Understanding Moving Expenses and Tax Deductions

If you moved for work, school, or business, you may be able to claim moving expenses on your tax return. To do it right, you need to know what counts, what you can claim, and how to report it. The articles below explain each part in simple terms:

• Understand what qualifies as a moving expense: Learn which types of costs—like transportation, storage, or temporary living—are eligible under CRA rules.

• Which costs can you deduct, and how do reimbursements affect your claim: Find out what you can still claim if your employer reimbursed some of your costs, and which deductions are still allowed.

• Choosing between the simplified and detailed method: Understand how the two methods work and when to use each to calculate your moving expenses.

• Understanding net eligible income: See how this amount affects your moving expense claim and why it’s used to set your deduction limit.

• When can you claim travel or moving expenses for medical reasons: Learn when a doctor-certified move for medical care qualifies for a tax deduction.
• Glossary: An A–Z guide to essential tax planning terminology for informed financial strategies.