By Le Grand Peate — 287 interprovincial moves, 1,150,000 km across Canada, 15 years on the road
Coast to coast, my friend!
After 287 interprovincial moves and over a million kilometers crossing this country, I've had a front-row seat to something that surprises me every time: most people have no idea they can claim their moving expenses on their taxes.
I'm not a tax professional — I'm a truck. But I've driven enough families from Vancouver to Montreal, from Calgary to Halifax, and from Toronto to Quebec City to know that moving is expensive. And when there's a legal way to get some of that money back, people should know about it.
The Canada Revenue Agency allows you to deduct eligible moving expenses on Line 21900 of your tax return — if you meet certain conditions. The key word is "if." Not every move qualifies. Not every expense is deductible. And the rules have details that are easy to miss.
This guide will walk you through who qualifies, what you can claim, what you cannot claim, and how to file. I'll keep it practical, because that's what I do — whether it's navigating the Rockies or navigating the tax code.
"We take the time it needs — including the time to understand what's owed to you."
Important: This article is for general information only. Tax situations vary. Consult a qualified tax professional or accountant for advice specific to your circumstances. The CRA is the authoritative source for all tax rules.
Do You Qualify? The Three Conditions
Not every move qualifies for a tax deduction. You need to meet all three of these conditions:
Condition 1: You Moved for Work, Business, or School
You must have moved to start a new job, run a business at a new location, or attend a post-secondary program full-time (university, college, or equivalent). Moving for personal reasons — retirement, wanting a bigger house, following a spouse who isn't starting a new job — does not qualify.
Condition 2: The 40 km Rule
Your new home must be at least 40 kilometres closer to your new work or school location than your old home was. The CRA measures this by the shortest public route — not a straight line on the map.
Example: Your old home was 50 km from your new job. Your new home is 8 km from your new job. The difference is 42 km. You qualify. But at 39.9 km? You're out. The CRA uses mapping tools to verify.
Condition 3: You Earned Income at the New Location
You can only deduct moving expenses against income earned at the new work location (employment, self-employment, or taxable scholarships for students). You cannot deduct them against investment income, EI benefits, or other types of income — even if received at the new location.
What Can You Claim? Eligible Moving Expenses
If you qualify, the list of what you can deduct is broader than most people think.
Transportation and Storage
| Expense | Details |
|---|---|
| Professional movers | Full-service or labor-only — keep the invoice |
| Truck rental | If you moved yourself (rental fee, fuel, insurance, mileage) |
| Packing materials | Boxes, tape, bubble wrap, specialty boxes |
| Packing services | Professional packing by the moving company |
| In-transit storage | Temporary storage of your household goods |
| Cargo protection | Coverage purchased for the move |
This is the biggest category for most people. A cross-Canada move with Pro Action Transport through the Great Canadian Van Lines network generates a single invoice that covers most of these items.
Travel to the New Home
| Expense | Details |
|---|---|
| Vehicle expenses | Gas and oil (actual receipts), or CRA simplified rate per km |
| Meals during travel | Actual receipts or CRA flat rate ($23/meal, max $69/day per person) |
| Accommodation during travel | Hotels on the road between old and new home |
| Flights / train / bus | If you flew or took transit instead of driving |
Simplified method tip: You don't need receipts for meals and vehicle costs if you use the CRA's flat rates. For meals, claim $23 per meal (max $69 per day) per person. For vehicle, multiply your kilometres by the CRA's per-km rate for the province where travel began. Keep a mileage log either way.
Temporary Living Expenses (Maximum 15 Days)
| Expense | Details |
|---|---|
| Meals | For you and household members, near old or new home |
| Accommodation | Hotel or temporary housing, near old or new home |
If your closing dates don't align and you need a place to stay, you can claim up to 15 days of meals and accommodation. Fifteen days total — not 15 at each end.
Costs Related to Your Old Home
| Expense | Details |
|---|---|
| Lease cancellation fees | Breaking your lease early (not rent itself) |
| Maintenance of vacant old home | Mortgage interest, property taxes, insurance, heating, utilities — max $5,000 |
| Selling costs | Real estate commission, legal fees, advertising, mortgage penalty |
Costs Related to Your New Home
| Expense | Details |
|---|---|
| Legal fees | For the purchase of your new home |
| Land transfer taxes | Provincial taxes on the property transfer (welcome tax in Quebec) |
Incidental Costs
| Expense | Details |
|---|---|
| Changing address on legal documents | Driver's licence, vehicle registration |
| Replacing driver's licence and plates | New province fees |
| Utility connection/disconnection | Hookup and cancellation fees |
What Can You NOT Claim?
This is where people make mistakes. The CRA does not allow:
| Not Eligible | Why |
|---|---|
| Losses on the sale of your old home | Capital losses are not deductible as moving expenses |
| Renovations to make old home sellable | Cosmetic improvements are not moving expenses |
| House-hunting trips | Pre-move trips to search for a new home |
| Mail forwarding costs | Canada Post fees are not on the CRA list |
| Cleaning costs | Cleaning your old or new home |
| GST/HST on new home purchase | Excluded specifically by the CRA |
| Rent on old home (before cancellation) | Regular rent is not deductible — only lease-breaking fees |
| Employer-reimbursed expenses | If reimbursed and not included as taxable benefit on your T4 |
How to File: Step by Step
- Gather your receipts — every invoice, receipt, and document related to the move
- Complete Form T1-M — the CRA form that calculates your total eligible deduction
- Enter the total on Line 21900 of your T1 Income Tax and Benefit Return
- Keep everything for 6 years — do not send supporting documents with your return, but keep them in case the CRA asks
Quebec residents: also complete Form TP-348-V for Revenu Quebec. Tax software like H&R Block and TurboTax typically combine both forms into a single workflow.
What If Your Expenses Exceed Your Income?
If your moving costs are higher than the income you earned at the new location that year, you can carry forward the unused portion to the next year. You don't lose the deduction — you just claim it later against future income from the same new location.
Example: You moved in November and earned $8,000 at the new job before year-end. Your moving expenses were $12,000. You claim $8,000 this year and carry forward $4,000 to next year's return.
A Real-World Example: Vancouver to Montreal
A family of four moves from Vancouver to Montreal for a new job. They hire professional movers and drive their car across the country.
| Expense | Amount |
|---|---|
| Professional movers (full service, weight-based) | $7,200 |
| Packing materials purchased separately | $280 |
| In-transit storage (10 days) | $350 |
| Cargo protection upgrade | $180 |
| Meals on the road: 5 days, 4 people (simplified) | $1,380 |
| Hotels on the road: 4 nights | $720 |
| Temporary accommodation in Montreal: 8 nights | $1,440 |
| Temporary meals in Montreal: 8 days, 4 people (simplified) | $2,208 |
| Real estate commission on Vancouver home sale | $18,000 |
| Legal fees — old home sale + new home purchase | $3,300 |
| Land transfer tax (welcome tax) — Montreal | $3,200 |
| Utility disconnection/connection + licence changes | $350 |
| Estimated total eligible expenses | $38,600+ |
That is a significant tax deduction. On a $38,600 deduction at a marginal tax rate of 40%, the tax savings could be over $15,000. This is why you keep every receipt.
How This Connects to Your Move
Before the move: Build a detailed budget that accounts for all potential costs — including the ones people forget. I wrote about all ten of them: Hidden Costs of Long-Distance Moving.
During the move: Keep every receipt. Label them clearly. Your moving binder (as Rusty Allen recommends in his Complete Moving Checklist) should have a section specifically for tax-related documents.
Before packing: Declutter first. Tria Serene will tell you that every item you let go of before the move saves you money on the truck AND reduces the total cost you need to document for your tax return.
Packing: Scotty McBox covered the packing side in How Many Boxes Do I Need?. Professional packing costs are deductible — another reason to get it quoted separately on your invoice.
Storage: If you need storage between homes, those costs are deductible too. Sheldon Storage explains how to prepare: How to Prepare Belongings for Storage.
Frequently Asked Questions
Can I claim moving expenses if I moved for personal reasons?
No. The move must be for a new job, to run a business, or to attend post-secondary school full-time.
Does the 40 km rule apply to the distance of my move, or the distance to my workplace?
It applies to the difference in commute distance. Your new home must be at least 40 km closer to your new workplace than your old home was.
Can both spouses claim moving expenses?
Only one spouse can claim the expenses. It's usually best for the higher-income spouse to claim them.
Can I claim if I moved from another country to Canada?
Yes, if you are a factual or deemed resident of Canada and the move is to start working or studying at a Canadian location.
Can I claim if I moved within the same city?
Yes, as long as you meet the 40 km rule and moved for a new job, business, or school.
What if my employer reimbursed part of my expenses?
You can only claim unreimbursed expenses. If the reimbursement was included as a taxable benefit on your T4, you can claim the full amount.
The Bottom Line
A cross-Canada move is one of the biggest financial decisions a family can make. The tax deduction on Line 21900 won't erase the cost — but it can put thousands of dollars back in your pocket.
The rules are clear. The form is straightforward. The hardest part is keeping the receipts — and now you know what to keep.
After 1,150,000 kilometers, I've learned that the smartest movers aren't just the ones who plan the logistics well. They're the ones who plan the finances well too.
Coast to coast, my friend. Let's make sure you get back what you're owed.
Call us: 514-266-1239
Le Grand Peate — Rusty's Chronicle
Since 2019 - 287 interprovincial moves - 1,150,000 km across Canada
Certified Great Canadian Van Lines Agent
"We take the time it needs."