The two tests: purpose and distance
A move qualifies when you relocate to work or run a business at a new location, or to attend a post-secondary program full time. Your new home must also be at least 40 kilometres closer, by the shortest public route, to the new work location or school than your old home was. The distance is measured to the workplace, not between the two houses.
You must also establish the new home as the place where you normally live. Selling, renting or advertising your old home for sale or rent are examples of that. Generally, the move is from one place in Canada to another.
What generally counts, and what does not
Eligible costs include moving and storing household goods, travel to the new home, up to 15 days of temporary living near the old or new home, cancelling a lease, and some costs of selling the old home, such as a real estate commission or a mortgage penalty. Legal fees and transfer taxes on buying the new home can count if you sold your old home because of the move.
Costs that do not count include work to make the old home easier to sell, a loss on the sale, house-hunting trips, job-hunting trips and mail forwarding. Because the lists have conditions and limits, check the CRA’s detail before you add up receipts.
An illustrative example
Illustrative example: you move from Hamilton to a new job in a city well over 40 kilometres closer to your new workplace than your old home was, and your eligible moving costs come to $6,000. You earn $20,000 at the new work location in the move year, so the full $6,000 can be deducted against that income. If you earned only $4,000 there, you could deduct $4,000 and carry the unused $2,000 forward.
The deduction comes only from income earned at the new location, usually employment or self-employment income. You cannot use it against investment income or employment insurance benefits. A full-time student who moves to study can deduct the costs only from the taxable part of scholarships, bursaries, fellowships, research grants or certain prizes.
What to discuss with your accountant
If your employer reimbursed any of your costs, you can claim only the part you included in income or that you subtract from your claim. The CRA may ask for a letter from your employer saying you were not reimbursed. Expenses paid in a later year, for instance after the old home sells, are claimed in the year you pay them and cannot be carried back.
Bring receipts, the sale and purchase documents, your employer’s reimbursement details and the dates you started work. Do not file them with your return, but keep them in case the CRA asks, and ask whether the simplified or detailed method suits your meal and vehicle costs.
Sources & editorial notes
Sources checked October 24, 2026. The examples are illustrative and provide general information. Discuss how the guidance applies to your circumstances with your accountant.
- Line 21900 – Moving expensesCanada Revenue Agency
Rules and guidance can change. Use the current official source and confirm the treatment for your facts. To flag an error, contact Sora.