Moving Expenses in Canada: Eligibility and Records to Keep
Keeping a moving receipt is sensible, but it does not make the expense tax-deductible. First check whether the relocation qualifies, then identify eligible costs and the income against which they can be claimed. A local move for a larger apartment does not automatically create a tax deduction.
This guide was researched on 24 October 2026. CRA's linked public filing page and downloadable T1-M currently present 2025 materials. Use the form, rules and any simplified-method rates applicable to the tax year you are filing; no 2026 meal or vehicle rate is assumed here.
Check the reason for the move and the income connection
The CRA moving-expenses overview describes qualifying work, business and full-time post-secondary study moves, subject to conditions. For work or business, the deduction is limited by eligible income earned at the new work location. A move to attend full-time post-secondary study has different eligible-income rules: only the taxable portions of specified scholarships, fellowships, bursaries, prizes or research grants can support that study-related deduction.
The CRA moving-expenses folio explains the connection to work or study and the requirement to ordinarily reside at the relevant homes. A move solely for personal reasons does not satisfy that connection. Border-crossing moves and unusual residence arrangements require their own review rather than assumptions based on a local Canadian move.
Apply the distance test correctly
The new home must be at least 40 kilometres closer to the relevant new work location or school, using the shortest normal public route. Compare old-home-to-new-work distance with new-home-to-new-work distance. It is not simply the distance between the two homes. See the folio's eligible-relocation conditions.
For example, if those two route distances are 62 kilometres and 18 kilometres, the difference is 44 kilometres. That passes the distance component only; it does not establish the other conditions or an entitlement to a refund. Save the routes and addresses used in your calculation.
Sort expenses before adding them up
The currently available T1-M instructions list transportation and in-transit storage, qualifying moving travel, and other eligible categories. Temporary meals and lodging near the old or new home have a maximum 15-day rule. Lease-cancellation costs are distinct from ordinary rent paid before cancellation. More complex home-sale and purchase costs have additional conditions.
The same instructions exclude items such as house-hunting travel, mail forwarding and cleaning or repairs to meet a rental landlord's standards. Keep those in your household budget, but separate them from the proposed tax claim. The categories above are a starting point, not the complete list.
Build a records folder you can explain later
Use one folder per move. A clear file should let you or a preparer connect each amount to a date, service and reason without relying on memory. Give documents descriptive names and retain readable originals or reliable copies as appropriate.
| Folder section | Records to gather |
|---|---|
| Move and purpose | Old and new addresses, move date, work start or enrolment records and a short explanation of the connection. |
| Distance | Both route calculations to the new workplace or school, with addresses and date checked. |
| Transport and storage | Itemized invoices, service dates, provider name, proof of payment and any refund or credit. |
| Travel and temporary stay | Trip dates, travellers, kilometres, accommodation dates and evidence supporting the chosen calculation method. |
| Employer payments | Reimbursement or allowance statements and how those amounts were treated. |
| Return and follow-up | T1-M calculation, eligible-income records, return, assessment and any carry-forward schedule. |
Add a running register with date, supplier, amount paid, category, document filename and whether the amount was reimbursed. Put uncertain entries in a review column instead of quietly including them in the total.
Reconcile reimbursements and calculate the claim
CRA's line 21900 guidance requires employer reimbursements or allowances to be accounted for: eligible expenses cannot simply be claimed again without the required income inclusion or reduction. It also explains eligible-income limits and possible carry-forward treatment. A deduction reduces the income used in calculating tax; it is not a dollar-for-dollar repayment of your moving bill.
Use the T1-M form page to obtain the appropriate available form and calculate the deduction, with a separate calculation for each eligible move. For meal or vehicle claims, check the detailed and simplified methods in the applicable instructions. Simplified calculation does not remove the need to substantiate the move.
Keep the evidence after filing
CRA's records guidance says to retain tax documents for at least six years, including when filing online or when attachments are not required. Keep payment evidence and the return and assessment, not just the mover's receipt. Check the detailed retention rules for your situation before destroying records, especially where a claim remains under review.
Resolve uncertain eligibility, residence or reimbursement questions with CRA or a qualified tax professional before filing. For cash planning before the move, use the separate BC moving-budget guide. Keep the full moving budget even when only some expenses qualify for tax purposes.
Frequently asked questions
Does every local move qualify for a moving-expense deduction?
No. The purpose, residence, distance and eligible-income conditions must be met; a moving invoice alone does not establish eligibility.
Is the 40-kilometre test the distance between my homes?
No. Compare each home’s shortest normal public route to the relevant new work location or school.
Can I discard the receipts after filing online?
No. CRA may request supporting records later. Its general guidance says to keep tax documents for at least six years; check detailed retention requirements before disposal.
Sources
Researched 2026-10-24. Check the linked source for later changes.