CRA Moving expenses

Types of moving expenses eligible for deduction

Moving expenses, when not reimbursed, are considered a taxable benefit, and are added to your employment income or self-employment income.

You can claim these costs for yourself and your family members from the income earned through your new job. Here is the list of CRA moving costs that can be claimed on your tax return:

Transportation and storage costs, such as movers, insurance, in-transit storage, etc.
Travel expenses, such as meals, vehicle costs, and accommodation charges incurred during the move
Temporary living costs, including meals and lodging, near your old and new home for up to 15 days
Lease cancellation costs, excluding any rental payments made before the cancellation of the lease
Incidental costs, including address change on legal documents, driver’s license and personal vehicle permit replacements, and utility hook-ups and disconnects
Maintenance costs of up to $5,000 for your vacant old home (must not be rented by you or any other person who previously lived with you), including interest, insurance premiums, property taxes, and heating and utilities. These costs should be incurred after you have moved to a new home, provided reasonable efforts were made to sell the property
Selling costs, such as advertising, legal fees, or mortgage penalty if you end up paying off your mortgage prior to maturity
Purchase costs for your new home, including legal fees and taxes paid on the title transfer or registration

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Methods for claiming moving expenses

If you’ve incurred eligible moving expenses in the prior year, download the T1-M form and complete the relevant sections to calculate your allowable moving costs.

You must fill out a separate form for each move and include the total amount calculated on line 21900 of your tax return.

For your meal and vehicle expenses, you can apply either of the two methods below.

Detailed method

With the detailed method, you can calculate your meal and vehicle expenses and claim the actual expenses incurred. You must retain all your receipts as a supporting document in case the CRA wants to review them later.

Simplified method

The simplified method allows you to calculate your meal expenses using a flat rate per person, which is $23 per meal and up to $69 per day (inclusive of taxes).

For vehicle expenses incurred in 2023, multiply the number of kilometers driven by the cents/km rate for the originating province, where your old home was located. Find the full list of provinces and respective rates here.

It’s not mandatory to keep receipts when using the simplified method, but it’s still good to have relevant records in case the CRA wants to audit your expenses.

Moving expenses reimbursement from the employer

If an employer pays or reimburses relocation expenses to an employee, they won’t usually be considered a taxable benefit. Also, this rule would be applicable if:

The employee moves to a new location as a result of their new job within or outside of Canada
The employer bears moving expenses for an employee due to the completion of their job tenure or employment duties

When an employer does not reimburse for moving expenses at all or makes a partial reimbursement, the employee can use at least some portion of those expenses as a deduction on their tax return.

Claim moving expenses as a full-time student

As a full-time student, you can claim the above-mentioned CRA moving expenses from parts of your fellowships, scholarships, bursaries, research grants, and specific prizes, which must be included in your income.

In case you need to move to a new location for an internship, part-time work, or your own business, you can claim these expenses from your employment or self-employment income.

Note that you can only deduct the expenses that you were not reimbursed for. If your employer reimbursed you for fewer expenses than those you incurred, you can still claim the difference on your return.

Can unused moving expenses be carried forward?

If your moving expenses are either more than your reported income or were not claimed 100% in a given year, you can carry them forward and claim them in future year(s).

However, if you moved to your new home in the year prior, and incurred expenses in the current year, you cannot deduct them from the previous year’s return.

FAQ

Are moving expenses eligible income for the CRA?

Moving home for a new job or school lets you claim related expenses from your employment or self-employment income earned from your new job.

Does the CRA audit for moving expenses?

Yes - however, the possibility of getting audited for moving expenses is low. Still, it’s advised to retain your receipts or supporting documents just in case.

Are moving expenses a taxable benefit in Canada?

Moving expenses are usually not considered a taxable benefit in Canada. Familiarize yourself with the extensive CRA list of non-taxable benefits to make sure.