Moving Tax Deductions in Canada: What You Can Claim

Who Qualifies for Moving Expense Deductions in Canada

The Canada Revenue Agency (CRA) allows you to deduct moving expenses if you moved to be at least 40 km closer (by the shortest public route) to a new job, business, or post-secondary school. This is measured from your old home to your new workplace — not from your new home. If the distance between your old home and new workplace is 40+ km greater than the distance between your new home and new workplace, you qualify.

This applies to employees, self-employed individuals, and full-time post-secondary students. Both interprovincial moves (e.g., Montreal to Toronto) and intraprovincial moves (e.g., Quebec City to Montreal) qualify — as long as the 40 km rule is met.

Eligible Moving Expenses You Can Claim

Here's the complete list of CRA-eligible moving expenses (Form T1-M):

• Transportation and storage: Moving company fees, truck rental, packing materials, insurance, temporary storage (up to 15 days)
• Travel expenses: Vehicle costs (per-km rate or actual gas/hotel), meals during travel (flat rate or actual receipts)
• Temporary living costs: Up to 15 days of meals and accommodation near your old or new home
• Lease cancellation costs: Penalties for breaking your old lease
• Home selling costs: Real estate commissions, legal fees, transfer taxes (if you sold your old home)
• Connection/disconnection: Utilities hookup and disconnect fees

In 2026, the CRA's simplified method allows $23 per meal (3 meals/day = $69/day per person) without receipts. Vehicle costs can be claimed at the per-km rate for your province (Quebec: $0.70/km for the first 5,000 km).

What You Cannot Claim

Common expenses that are not deductible: the cost of buying your new home (mortgage fees, down payment), house-hunting trips, mail forwarding, cleaning fees, home improvements to help sell your old home, and any expenses reimbursed by your employer. If your employer pays for your move, those reimbursed amounts cannot also be claimed as deductions.

You can only deduct moving expenses against income earned at the new location (employment or business income, or student scholarships/grants). You cannot use moving expenses to create a loss — any unclaimed portion can be carried forward to the next tax year.

How to Claim Moving Expenses on Your Tax Return

Use CRA Form T1-M (Moving Expenses Deduction) to calculate your eligible expenses. Keep all receipts for at least 6 years — the CRA can request them at any time. File the deduction on Line 21900 of your income tax return.

For a typical Montreal-to-Toronto move costing $3,000 in eligible expenses, the tax savings at a 40% marginal tax rate would be roughly $1,200. That's a significant recovery — essentially getting back 40% of your moving costs. It's one of the most generous deductions available to Canadian taxpayers, and too many people miss it.