Moving Expenses Tax Deduction Canada
If you moved at least 40 km closer (by the shortest usual public route) to a new job, business, or full-time post-secondary school in Canada, you can deduct eligible moving expenses on Line 21900 of your return using CRA Form T1-M. Eligible costs include transportation and storage, travel (use the simplified rate of $23 per meal, up to $69 per person per day, plus the per-province vehicle cents/km rate — 53.0¢/km in Alberta up to 70.5¢/km in Yukon), temporary living (maximum 15 days), lease-cancellation and selling costs. You can only deduct against income earned at the new location, but unused amounts carry forward with no time limit.
Deduction = Total Eligible Expenses (transportation + travel + temporary living + selling costs) — limited to income earned at new location
The Canada Revenue Agency lets you deduct moving expenses on Line 21900 if you relocated to be at least 40 kilometres closer to a new work location, business, or full-time post-secondary school. For a typical interprovincial move this deduction is worth C$3,000–C$15,000 in claimable expenses, cutting hundreds or thousands off your tax bill.
This 2026 guide covers everything you need to claim moving expenses on your 2025 or 2026 Canadian return using Form T1-M: the 40 km rule and how the CRA measures it, every eligible and ineligible expense, the simplified meal rate ($23 per meal, up to $69 per person per day) and the 2024 per-province vehicle rates, the 15-day temporary-living cap, real worked examples, and carry-forward rules.
What This Means
Your estimated deduction shows the maximum amount you can claim against your employment or self-employment income earned at the new location. Remember: you can carry forward unused moving expenses to future tax years if your current-year income at the new location doesn't cover the full deduction.
The 40 km Rule Explained
To qualify for the moving expense deduction, your new home must be at least 40 kilometres closer to your new work or school location than your old home was. The CRA measures this using the shortest normal route open to the public — not a straight line and not your preferred scenic route.
Example: Your old home was 55 km from your new workplace by the shortest public road. Your new home is 10 km from that workplace. The difference is 45 km, which exceeds the 40 km minimum, so you qualify. Note that the distance you moved is irrelevant — only the change in distance to work matters.
Who qualifies:
- Employees who start work at a new location in Canada
- Self-employed individuals who start or carry on a business at a new location
- Full-time students at a post-secondary institution (deduct against the taxable part of scholarships, bursaries, fellowships, research grants, and certain prizes, plus employment income at the new location)
- Individuals who move back to Canada after being away for full-time study or work (certain conditions apply)
Who does NOT qualify:
- People who move but don't change work or school locations
- Part-time students
- People whose new home is less than 40 km closer to their work/school
- Members who relocate for work that is reimbursed in full and tax-free by an employer (you can only claim the unreimbursed portion)
Eligible Moving Expenses (Complete List)
CRA Form T1-M lists every expense you can claim. Here is the complete breakdown with realistic 2026 amounts:
| Category | Eligible Expenses | Typical Amount |
|---|---|---|
| Transportation & storage | Moving company fees, truck rental, portable containers, packing materials, in-transit insurance, and storage of household items | C$1,500 – C$10,000 |
| Travel expenses | Vehicle costs (gas/tolls, or the simplified per-km rate), or airfare/bus for you and your household, plus meals (simplified $23/meal, up to $69 per person per day) and accommodation en route | C$200 – C$2,000 |
| Temporary living costs | Meals and accommodation near the old or new home — maximum 15 days total per household, meals at the simplified flat rate or by receipt | C$500 – C$3,000 |
| Old residence costs | Lease-cancellation payment, costs to maintain a vacant former home (up to C$5,000 max: interest, property taxes, insurance, heat/utilities) while it is unsold and unoccupied | C$200 – C$5,000 |
| New residence costs | Legal/notary fees and any registration/transfer tax on the new home — but only if you (or your spouse) sold the old home because of the move | C$500 – C$3,000 |
| Selling costs (old home) | Real-estate commission, legal/notary fees, advertising, and mortgage prepayment penalty when selling the former home | C$5,000 – C$30,000 |
NOT eligible: any loss on the sale of your home, expenses to make the old home more saleable, house-hunting trips before the move, job-search costs, value of items movers refused to take, mail-forwarding, costs of cleaning a rented home, replacing personal-use items (driver's licence, vehicle permits, tools, drapes/curtains), GST/HST on a new home, and mortgage default insurance.
How to Claim: T1-M Form Step-by-Step
Follow these steps to claim your moving expenses on your Canadian tax return:
- Gather receipts: Collect all receipts for eligible expenses. You don't file them with your return, but the CRA can ask for them later — keep all supporting documents for at least 6 years.
- Complete Form T1-M: Download the current Form T1-M from canada.ca and fill out each part: your information and the distances, transportation/storage, travel, temporary living (max 15 days), cost of cancelling the old lease or selling the old residence, and cost of the new residence.
- Calculate vehicle expenses: Use the simplified method (a flat per-kilometre rate for the province/territory where the trip began — for 2024 this ranges from 53.0¢/km in Alberta to 70.5¢/km in Yukon; Ontario, Quebec and BC sit in the low-to-mid 60s) or the detailed method (actual fuel, oil, repairs, insurance and licence pro-rated for the move). Check canada.ca for the exact current per-province rate.
- Calculate meal expenses: Use the simplified method — a flat C$23 per meal, to a maximum of C$69 per person per day (no receipts needed, but the CRA may still ask for proof of the trip) — or the detailed method using actual receipts.
- Enter on your tax return: Transfer the total deduction from Form T1-M to Line 21900 of your T1 income tax and benefit return.
- Keep records: Retain Form T1-M and all receipts. If you file electronically, the CRA may request them afterward; if you file on paper, attach the T1-M.
Real-World Deduction Examples
Here are three common scenarios showing how the moving expense deduction works under the current rules:
Example 1: Employee relocating within Ontario
Sarah moves from Ottawa to Toronto for a new job in March. Her eligible expenses (vehicle at the simplified Ontario per-km rate, meals at the $23/$69 flat rate):
| Expense | Amount |
|---|---|
| Moving company | C$3,200 |
| Travel (450 km × ~0.63/km simplified) | C$284 |
| Meals en route (2 people × 1 day × C$69) | C$138 |
| Hotel en route (1 night) | C$165 |
| Temporary accommodation (10 days × C$150) | C$1,500 |
| Temporary meals (10 days × 2 people × C$69) | C$1,380 |
| Lease cancellation payment | C$1,500 |
| Utility hook-up/disconnection | C$85 |
| Total eligible | C$8,252 |
Sarah earned C$55,000 at her new Toronto job by year-end, which comfortably exceeds C$8,252, so she deducts the full amount on Line 21900.
Example 2: Student moving for university
James moves from Winnipeg to Montreal for a full-time master's program. His eligible expenses total C$4,200. His taxable scholarship income plus a campus job earn him C$22,000 at the new location. He can deduct the full C$4,200 against that eligible income.
Example 3: Carrying forward expenses
Mike moves from Vancouver to Halifax in November and earns only C$8,000 at his new job before year-end. His eligible expenses are C$12,500. He deducts C$8,000 this year and carries the unused C$4,500 forward — there is no time limit, but it can only ever be deducted against income earned at the new Halifax location.
Common Mistakes When Claiming Moving Expenses
Avoid these frequent errors that can delay your refund or trigger a CRA review:
- Claiming against the wrong income: You can only deduct moving expenses against employment or self-employment income earned at the new work location (or, for students, the taxable part of awards plus income at the new location). Income from the old job does not count.
- Exceeding the 15-day limit: Temporary living costs (meals and accommodation near the old or new home) are capped at a combined 15 days per household. Don't claim more.
- Misapplying the 40 km rule: Measure the shortest normal public route, not a straight line and not the long way. The move distance is irrelevant — only the change in distance to work counts.
- Using the wrong vehicle rate: The moving simplified method uses a single flat per-kilometre rate for the province where travel began (53.0¢–70.5¢/km for 2024). It is not the tiered employment automobile allowance rate.
- Claiming ineligible expenses: House-hunting trips, costs to fix up the old home for sale, losses on the sale, mail forwarding, and replacement of personal items (licences, vehicle permits) are NOT deductible.
- Not keeping receipts: Even though you don't submit them with the return, the CRA can request receipts for up to 6 years. Use the simplified method for meals and vehicle costs if receipts are missing.
- Double-claiming reimbursed costs: Subtract any tax-free employer reimbursement or allowance from your claim — only the net unreimbursed amount is deductible.