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Moving 120 km closer to a new job in Ontario, with $16,700 of qualifying costs and $70,000 of pay at the new job, gives a $16,700 deduction. That saves about $4,517 of income tax for 2026, or 27% of the amount claimed (estimate). The costs: $3,500 for movers, $800 for travel, $900 of temporary living, $9,000 to sell the old home and $2,500 of carrying costs.
The deduction works only against income from the new location, so a job that starts late in the year can leave part of the claim for the next one.
Who can claim moving expenses?
Anyone whose new home is at least 40 km closer to their new work or school, measured by the shortest usual public route. The move can be for a job, a business or full-time post-secondary studies. Students can deduct only against taxable scholarships, bursaries and research grants, unless they also earn work income at the new location. File Form T1-M for each move; the Canada Revenue Agency: line 21900 page has the full rules.
Which moving costs are eligible?
Eligible costs include:
- moving and storing your belongings, and travel to the new home
- up to 15 days of temporary living costs
- lease cancellation, minor address changes and utility hookups
- the costs of selling the old home or buying the new one
Carrying costs for an old home that hasn’t sold yet are capped at $5,000. House-hunting and job-hunting trips, a loss on selling your home, repairs to help it sell, and replacing personal items don’t count.
How much can I deduct in one year?
The smaller of your eligible costs and the income you earned at the new location that year. If a move costs $16,700 but you earned only $12,000 at the new job, you deduct $12,000 and carry $4,700 forward against the same kind of income. Since $12,000 is under the basic personal amount, the deduction saves no tax this year, so the carryforward matters. You can’t carry costs back to an earlier year, and you can claim costs in the year you pay them even if you moved earlier.
How much tax does the deduction save?
Your marginal rate on the amount deducted, which is why income level and province matter. The table compares the same $16,700 claim against $70,000 of new pay:
| Province | Tax saved |
|---|---|
| British Columbia | $4,327 |
| Ontario | $4,517 |
| Alberta | $4,539 |
| Nova Scotia | $5,664 |
At $30,000 of pay the same claim in Ontario saves $2,452, because more of it falls in a lower bracket. To see which bracket you’re in, use the marginal tax rate calculator; the closing costs calculator helps estimate the cost of buying at the new place.
What does this estimate leave out?
The simplified per-kilometre and meal rates, moves to or from Canada, and the effect on benefits that depend on income. It also doesn’t value the carryforward, which saves tax in a later year. Keep your receipts, as the CRA may ask for them.
Where does this information come from?
The 40 km rule, the eligible and ineligible costs, the income limit and the carryforward come from the Canada Revenue Agency line 21900 page. Tax saved comes from this site’s own 2026 tax engine. Checked in October 2026. This is an independent information site: we provide no services, we do not represent the CRA or any organization, and we do not guarantee that anything here is accurate or current. We accept no liability for decisions based on it. Check the official source before you rely on it. See the full disclaimer.
Frequently asked questions
Can I claim moving expenses if my employer paid for the move?
Claim only what you paid yourself. If your employer paid or reimbursed part of the move, leave that part out of the claim and keep receipts for the rest, since the CRA can ask for them.
Do I need to move 40 km or drive 40 km?
Neither, exactly. The new home must be at least 40 km closer to the new work or school than the old one, measured on the shortest public route. A move of 100 km that only shortens your commute by 20 km doesn't qualify.
What if my new income is less than my moving costs?
You deduct up to your income from the new location and carry the rest forward. With $12,000 of new income and $16,700 of costs, you claim $12,000 now and carry $4,700 into the next year, against the same kind of income.
Is the $5,000 cap for carrying costs a yearly limit?
It caps the carrying costs of the old home while it sits unsold, which cover interest, property taxes, insurance and utilities. The calculator applies it to the carrying cost line and counts only $5,000 of anything entered above that.