Did you recently move to start a new job or attend a post-secondary institution? If so, you might be eligible to deduct moving expenses on your 2025 Canadian tax return. The CRA allows certain moving-related costs to be claimed if your relocation meets specific requirements. This guide walks you through the eligibility, what expenses qualify, and how to report them on your return.
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📌 Who Can Claim Moving Expenses?
You can deduct eligible moving expenses if:
- You moved at least 40 kilometres closer to your new workplace or educational institution.
- You are a full-time student attending a post-secondary program in Canada.
- You earned income at your new location from employment, self-employment, or grants.
🚚 What Moving Expenses Can You Claim?
The CRA permits the following moving-related expenses:
- Transportation and storage costs (movers, truck rental, packing supplies)
- Travel expenses (vehicle, meals, and lodging en route to new location)
- Temporary living expenses for up to 15 days
- Cost of cancelling a lease
- Cost to maintain your old home while it’s for sale (up to $5,000)
- Legal fees and real estate commissions (for selling your old home)
- Utility hook-ups and disconnections
⚠️ Expenses You Cannot Claim
- Loss on sale of your home
- Job hunting costs
- Home staging or renovation expenses
- Cost of buying a new home
- Mortgage penalties
📄 Which Form to Use
To claim your moving expenses, fill out Form T1-M: Moving Expenses Deduction and transfer the calculated amount to Line 21900 of your T1 tax return. Keep all receipts and documentation in case the CRA requests proof.
🎓 Special Rules for Students
Full-time students can claim moving expenses:
- When moving from their home to a school location, and
- When moving to a job location (e.g., co-op work term, summer job, internship)
However, students can only deduct these expenses from taxable scholarships, fellowships, bursaries, and grants.
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🧾 What Records Should You Keep?
- Moving company invoices and receipts
- Hotel and meal receipts during the move
- Gas and mileage logs for vehicle use
- Lease cancellation documents
- Real estate and legal fee statements
💡 Tax Tips to Maximize Your Deduction
- Track both fixed and variable moving costs carefully
- Use the CRA’s mileage and meal rate if claiming simplified expenses
- Combine moving expense claims with tuition or employment expenses
- Use CRA’s My Account to submit supporting documentation online if requested
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💬 Common Questions
Q: Can I claim moving expenses if I moved to Canada from another country?
A: You may claim expenses if the move was to earn income in Canada and meets the 40 km rule. However, expenses incurred outside Canada have specific limitations.
Q: Can I split moving expenses with my spouse?
A: Yes, expenses can be split based on who incurred them or whose income is being reported for the move.
Disclaimer: This blog post is intended for informational purposes only and does not replace personalized tax advice. Always consult a tax professional for individual guidance.
