Canada's Income Tax Act allows a deduction for eligible moving expenses when you relocate to start a new job, run a business at a new location, or attend a post-secondary institution full-time. Unlike many other deductions, this one is available broadly — whether you're a first-time job mover, a student heading to university, or a seasoned professional relocating for a promotion.
The key requirement is not just that you moved — it's that your new home must be at least 40 kilometres closer to your new work or school location than your old home was. CRA measures this using the shortest usual public route, not straight-line distance.
The 40 km test compares distances along public roads. Here's how to apply it:
For example, if you moved to Calgary for a new job: your old home was 65 km from the new employer; your new Calgary home is 10 km from the employer. The difference is 55 km — more than 40 km, so the move qualifies.
Note that the test is about proximity to the new work location, not the distance of the move itself. A long-distance move where your new home is only 30 km closer to work does not qualify. A shorter move that clears 40 km closer does.
| Eligible Expense | Notes |
|---|---|
| Moving company or truck rental | Cost of physically transporting household goods |
| Travel expenses | Driving costs (per-km rate or actual fuel), meals, and lodging during the move |
| Temporary accommodation | Up to 15 days of hotel or short-term lodging at old or new location |
| Selling your old home | Real estate commissions, legal fees, mortgage penalties, advertising costs |
| Buying your new home | Legal fees and land transfer taxes (if you sold your old home) |
| Lease cancellation | Cost to break a lease on your old rental |
| Connecting/disconnecting utilities | Hooking up phone, internet, utilities at new address |
| Storage costs | Up to 30 days between old and new home |
Moving expenses can only be deducted against income earned at the new work or school location. This means if you moved in October and only earned two months of income from your new employer by year-end, your deduction is limited to that two months of income. Any unused moving expenses can be carried forward to the following year and deducted against income earned at the new location.
For students, the deduction is limited to scholarships, bursaries, fellowships, or research grants included in your income from the new institution. Students who work while studying can also apply moving expenses against their employment income from the new location.
Moving expenses are claimed on Form T1-M (Moving Expenses Deduction), which is filed as part of your T1 personal return. The T1-M calculates your eligible deduction and transfers it to line 21900 of your T1. You do not submit your receipts with the return but must keep them for CRA review.
Keep organized records: the date of the move, the address moved from and to, all receipts categorized by type (moving company invoice, hotel receipts, fuel receipts, real estate closing documents), and any reimbursement documentation from your employer or institution.
Moving is expensive, and the CRA deduction is meaningful — but only if you claim everything you're entitled to. Swift Accounting reviews moving expense claims carefully, ensuring the 40 km test is met, all eligible expenses are included, and the income limit is correctly calculated. If you relocated to Calgary in 2025, book a free consultation with our team and bring your moving receipts.