Can You Claim Moving Expenses on Your Taxes in Canada?

Most people spend weeks planning a move and almost no time thinking about what that move costs in the context of their tax return. That’s a mistake — because under Section 62 of the Income Tax Act, eligible Canadians can deduct thousands of dollars in moving expenses directly from their taxable income.

The catch? The deduction isn’t automatic, it isn’t universal, and the CRA has specific rules about who qualifies and what counts. This guide explains how it works, what you can claim, and what Ottawa residents need to know before filing.

Who Qualifies for the Moving Expense Deduction?

Not every relocation qualifies. The CRA allows this deduction only when a move is tied to employment, self-employment, or full-time education — and only when you move close enough to make that connection credible.

The 40-Kilometre Rule

Your new home must be at least 40 kilometres closer (by the shortest normal public route) to your new workplace or educational institution than your old home was. This is a road-route measurement, not a straight line.

Example: Your old home was 55 km from your new Ottawa job. Your new home is 8 km away. You’ve reduced the distance by 47 km — you qualify. If your old home was already 12 km from the office and your new home is 6 km away, the 6 km difference doesn’t clear the threshold.

Three Eligible Scenarios

Who QualifiesWhat Income You Claim AgainstEmployee moving for a new job or transferEmployment income earned at the new locationSelf-employed person relocating their businessBusiness income from the new locationFull-time post-secondary studentTaxable scholarship, fellowship, or bursary income

Students are often the most surprised to learn they qualify. If you moved from another city to attend university in Ottawa — or moved within Ottawa to be closer to your campus — eligible expenses can be claimed against any scholarship income reported on your T4A. For the full picture of what a student move involves logistically, see our Student Moving Guide for Ottawa.

The “New Work Location” Requirement

You must have started working at the new location. Moving in anticipation of a job that hasn’t materialized, or relocating for vague career reasons, doesn’t qualify. The CRA expects a clear, documentable connection between your move and active employment or active enrollment.

What Moving Expenses Are Eligible?

CRA Form T1-M (Moving Expenses Deduction) defines seven categories of eligible expenses. Most people only claim one or two — and leave real money on the table.

1. Transportation and Storage of Household Effects

This is the largest category for most moves and directly covers the cost of hiring a professional moving company.

Eligible costs include:

• Moving company fees (labour, truck, fuel surcharges)
• Packing materials purchased for the move
• Short-term storage during the move (up to 90 days while goods are in transit to the new home)
• Insurance on goods in transit

Keep your moving company’s itemized invoice, receipts for boxes and packing supplies, and any storage facility contracts. Every dollar here flows directly to your T1-M. Before the move, creating a detailed moving budget spreadsheet makes it far easier to track and categorize expenses in real time rather than reconstructing them at tax time.

2. Travel Costs to the New Home

You can deduct travel expenses for moving yourself and your household from the old address to the new one:

• Vehicle costs at the CRA’s prescribed per-kilometre rate (or actual documented vehicle expenses)
• Commercial transportation (flights, train, bus tickets)
• Lodging en route — one reasonable overnight stop is typically allowed
• Meals en route at the CRA’s simplified flat rate: $23 per meal, up to $69 per person per day

Travel for multiple trips between the old and new city may or may not qualify in full — the CRA generally allows costs for the most direct, reasonable route.

3. Temporary Living Costs at the New Location

If your permanent new home wasn’t available immediately when you arrived, you may deduct up to 15 days of temporary accommodation and meals while waiting for possession or for a lease to begin.

This covers:

• Short-term hotel or furnished rental near the new home
• Meals during those 15 days at the flat-rate formula above

Keep hotel receipts and any short-term rental agreements.

4. Costs of Selling Your Old Home

If you owned and sold your home to complete the move, you can deduct:

• Real estate agent commissions
• Legal fees for the sale transaction
• Mortgage prepayment penalties (if breaking a fixed-rate mortgage to sell)
• Advertising costs for the listing
• Notary fees

This is often the second-largest category after the moving company itself — and one of the most commonly overlooked.

5. Costs of Buying the New Home

Eligible purchase-related expenses include:

• Land transfer tax (provincial and, in Toronto, municipal)
• Legal fees and disbursements for the purchase
• Home inspection fees
• Title insurance

Note: The purchase price of the home itself is not deductible. Only the transaction costs of acquiring it qualify.

6. Lease Cancellation Costs

If breaking your rental lease early was required to make the move, any penalties paid to your landlord are deductible. Keep a copy of the lease and your written notice of early termination.

7. Utility Connections and Licence Changes

The CRA allows deductions for:

• Connecting or disconnecting utilities at the old and new home
• Changing your driver’s licence to the new province (up to $15)
• Updating your vehicle registration

These are small amounts individually, but they’re already tasks on your moving to-do list — keep the receipts.

What’s Not Deductible

Several commonly assumed expenses don’t qualify:

ExpenseWhy It Doesn’t QualifyHouse-hunting trips before accepting the jobOnly post-decision expenses are allowedNew furniture or appliances at the new homeNot a moving expenseHome repairs or improvements at either addressNot directly related to the relocationMail forwarding (Canada Post)Administrative, not a moving costJob search costs that led to the moveSeparate from the relocation itselfGeneral living expenses after movingNormal costs of living, not move-specific

How to File: CRA Form T1-M

Form T1-M is a two-page calculation form that summarizes your eligible moving expenses. You attach it to your T1 tax return for the year of the move.

Key rules when completing T1-M:

1. Line 21900 of your T1 is where the deduction flows into your return
2. The deduction can only offset income earned at the new location in the same tax year
3. If your eligible expenses exceed your income at the new location for that year, the remainder carries forward to the following year — you don’t lose it
4. You do not submit receipts with your return, but the CRA may request them during a review — retain all documentation for six years

What to Keep for Documentation

• Moving company itemized invoice and proof of payment
• Storage facility agreement
• Vehicle mileage log (start and end odometer readings for the move)
• Hotel and meal receipts
• Legal fee statements from your real estate lawyer (both sale and purchase)
• Real estate agent commission statement
• Lease termination agreement and any penalty documentation
• Receipts for packing supplies

Practical Example: Ottawa Employee Moving for Work

Here’s how the deductible amounts could look for a typical Ottawa relocation:

ExpenseEligible AmountMoving company (2-bedroom home)$1,600Packing supplies$180Storage (30 days during move)$200Travel from previous city to Ottawa$340Temporary hotel (7 nights while waiting for possession)$980Meals during move period (family of 3, 4 days)$828Real estate agent commission on old home$14,200Legal fees — sale and purchase combined$3,100Land transfer tax (Ontario, on $550,000 purchase)$6,475Total eligible expenses$27,903

If this person earned $65,000 in the year from their new Ottawa job and their combined federal and Ontario marginal rate is approximately 33%, the tax savings on $27,903 in deductions could approach $9,200 — a significant return on money already spent.

For moves from outside the province, the totals are often higher. Our guide on moving to Ottawa from another province covers the logistics side of interprovincial relocations, and those moves typically come with higher travel costs and greater deductible amounts.

Ottawa-Specific Considerations

Real Estate Transaction Costs Are Substantial Here

Ottawa’s land transfer tax, combined with legal fees in Ontario, means the “buying the new home” category of your T1-M is often the largest single line item. Buyers of a $600,000 home in Ottawa pay approximately $8,475 in Ontario land transfer tax alone — and that’s fully deductible if your move qualifies.

Legal fees for a standard Ottawa purchase and sale transaction typically run $3,000–$5,000 combined. Add title insurance ($300–$600) and a home inspection ($450–$600), and the purchase-side deductions alone can reach $12,000–$15,000 on a typical Ottawa transaction.

Federal Government Employees

Ottawa has the largest concentration of federal public servants in Canada. If you received an Integrated Relocation Program (IRP) reimbursement through your department, you can still claim expenses on Form T1-M — but you must reduce your claimed amounts by whatever was reimbursed. Anything you paid out of pocket beyond the government reimbursement is still fully deductible.

Keep your IRP statement of reimbursement and cross-reference it against your receipts to determine the uncovered amounts.

Get an Itemized Moving Invoice

When hiring a moving company, always request a detailed, itemized invoice. A single lump-sum receipt may not satisfy a CRA review. A reputable Ottawa mover should be able to break down labour, truck rental, fuel surcharges, materials, and storage fees as separate line items. For guidance on what a proper moving estimate should contain, our guide on getting an accurate moving quote in Ottawa covers what to ask for and how to compare proposals.

Frequently Asked Questions

Can I claim moving expenses if I moved for an internal promotion with the same employer?

Yes — if the move brought your new home at least 40 km closer to the new work location than your old home was, an internal transfer or promotion qualifies exactly the same as a new-employer move.

My employer reimbursed part of my moving costs. What can I claim?

You must reduce your deductible expenses by the amount your employer reimbursed. If the reimbursement was included in your T4 employment income, you can claim the full expense without reduction. If it was paid directly and not on your T4, deduct only the net unreimbursed portion.

I moved three years ago and never claimed. Can I still get this deduction?

Yes. You can request a T1 Adjustment (Form T1-ADJ) for any of the previous 10 tax years. File the adjustment with your T1-M attached. Many people leave this money unclaimed because they didn’t know the deduction existed — it’s worth going back to check.

I moved for personal reasons, not work or school. Can I still claim?

No. The deduction is only available when the move is required to start work at a new location or to attend post-secondary school full-time. Personal lifestyle moves — better neighbourhood, lower cost of living, closer to family — don’t qualify under Section 62.

I’m self-employed and moved my home office. Does that qualify?

Yes, if your business is now operating from a new city or location and the move brought your home at least 40 km closer to where you conduct business, carry out client work, or attend a regular business premises. Sole proprietors, incorporated business owners drawing a salary from their corporation, and professionals working from home all potentially qualify.

For a complete picture of what a move costs — including every category worth tracking for your T1-M — our affordable moving guide for Ottawa breaks down every expense from packing supplies to professional moving fees. The more detailed your pre-move tracking, the stronger your tax deduction will be.