Back to blog

Moving Expenses Deduction

If you move to a new location, you may be eligible to deduct your moving expenses.

The general rules are you may deduct moving expenses from your income if you meet the following three requirements:

(1) You move your residence in order to earn wages or self-employment income in a new location in Canada (even if you will be working for the same employer);

(2) Your move results in your new residence being at least 40 kilometres closer than your former residence to your new place of work or business; and

(3) You cease your business or employment at the former location.

Students, under certain circumstances, may also claim moving expenses.

Special Rules for Students

If you have been in full-time attendance at a university or other post-secondary educational institution in Canada, and you move within Canada to take a job including summer employment, or to start a business, you may claim a moving expense deduction under the same general rules as those for persons who have been earning income.

You may deduct moving expenses only against income from scholarships, fellowships, research grants and similar awards, and only to the extent that such income is reported on your tax return. Many scholarships and fellowships are now tax-exempt and thus, the moving expense deduction for students may be limited.

Students leaving Canada to study full-time at a post-secondary educational institution abroad are also entitled to deduct moving expenses from scholarships, fellowships, research grants and similar awards.

Moving expenses of a student may only be deducted if the move results in the student residing at least 40 kilometres closer to the educational institution.

Please visit the CRA website link below for a list of eligible moving expenses and for further details pertaining to the moving expenses deduction.

* = required field