Moving Expenses Made Simple

Claiming moving expenses when relocating to a new work or study location can be easy and uncomplicated.

Who can claim?

If you are employed or self employed, you may deduct these expenses from the income you have earned from your employment or self employment income (in the new permanent location) only.

For example – If you are earning income from investments, such as stocks or bonds, receiving benefits from Employment Insurance and also earning employment income from ABC Company. The expenses can not be deducted from the Employment Insurance and the investment income but the expenses can be deducted from the ABC Company income as it falls under the category of employment income.

If you have relocated and are a full-time student studying at a post-secondary institution you may also qualify for these tax deductions. But – here’s the catch. You can only deduct the moving expenses from the amounts included in your income from scholarships, fellowships, bursaries, research grants etc.

Where did you move?

For the most part you must move from a place in Canada to another place in Canada, classified as a permanent home.

If you take a temporary job away from your spouse and children you would not qualify because you have family ties at the location that would be classified as your permanent residence.

*If you are moving in or out of the country please see the link at the bottom of the page titled “for more detailed information”.

How far do you have to move to be eligible?

Your new home must be at least 40 kilometers closer to your new place of work or school.

What moving expenses can be deducted?

Transportation and storage fees for household belongings including moving, packing, hauling, in transit storage and insurance. Boats, trailers etc. are also found under this grouping.

Travel expenses include expenses pertaining to your vehicle along with meals and a place to stay such as a hotel for yourself and your family.

Temporary living expenses for meals and a temporary place to stay for up to fifteen days. Close to the old and the new home.

*Note – not all members of your family must travel at the same time.

*There are two methods of calculation for claiming meal and vehicle expenses. Detailed, which is the actual amount spent.

Simplified which uses a flat rate per person for meals -$17/meal, to a maximum of $51/day.

For simplified vehicle expenses the number of kilometers driven is multiplied by the provincial rate in which the travel began. You will have to keep track of the mileage driven throughout the year and also the mileage driven for the move to access the percentage allowable.

Province or Territory Cents/Kilometer

Alberta 43.5 British Columbia 47.5 Manitoba 47.0 New Brunswick 48.5 Newfoundland and Labrador 53.0 Northwest Territories 58.0 Nova Scotia 48.5 Nunavut 57.5 Ontario 54.0 Prince Edward Island 47.5 Quebec 49.5 Saskatchewan 45.5 Yukon 59.0

What do vehicle expenses include?

Fuel, oil, tires, insurance, licence fees, maintenance, and repairs fall under operating expenses. And depreciation, finance charges and provincial tax fall under ownership expenses.

Additional moving expenses that can be deducted

Costs of:

Cancelling a lease for the old residence.

Incidentals - changing your address on legal papers; utility hookups and disconnections; replacing drivers licenses.

Maintaining your old residence to a limit of $5,000 for costs that include property taxes; interest; insurance and utilities. However, the property must be vacant and efforts must have been made to sell it.

Selling your old residence - advertising, real estate commission, legal fees and mortgage penalty when the mortgage is paid off before it matures.

Purchasing your new residence - legal fees, taxes (excluding GST/HST and property taxes) and registration of title related to the purchase of your new home. As long as the old residence has been sold due to the move.

A moving expense tax deduction can be claimed as long as your employer hasn’t given you money back for the move. Or if they have but added to your income, it will show on your T4 etc.

Remember to keep all of your receipts and documentation, make sure you can back up your claim. Although receipts do not have to be sent in at the time of filing, the CRA can ask for them at any time.

Click here to find more detailed information and the form or forms that must be completed

Click here for the folio that pertains to this particular deduction

Return from Moving Expenses to Common Tax Deductions

Return from Moving Expenses to Tax Deductions