When you move to a new city or province for work, you may be able to claim moving expenses as a tax deduction and access certain tax credits. The CRA allows eligible employees and self-employed individuals to deduct reasonable moving costs if the move brings them closer to their new workplace by at least 40 kilometres. You don't need to file forms in advance, but you must keep receipts and be prepared to show that the move was directly related to starting work at a new location or attending school full-time. If this CRA rule may apply to you, you can deduct a range of moving-related costs from your income: Travel costs (flights, gas, train tickets for you and your family) Shipping and storage of personal belongings Temporary accommodation near your new location (up to 15 days) Meals while travelling (partial deduction allowed) Cost of disconnecting and reconnecting utilities Address change fees and deposit transfers Real estate commissions or legal fees from selling your old home Mortgage interest, property taxes, and home insurance on your old home while it was listed for sale (up to 4 months) You cannot deduct the cost of buying new furniture, renovations, or improvements to
No, the rule states your new work location must be at least 40 kilometres closer to your new home than your old work location was. For example, if your old job was 10 km from your old home and your new job is 60 km from your new home, you may still qualify because the net distance to work decreased.
Moving expenses can only be deducted if the move is directly connected to starting employment or attending school full-time at a new location. If you moved on speculation, the deduction would not apply. The job offer or school acceptance should come before or very close to the move date.
Employer-paid moving expenses are generally non-taxable to you and you cannot claim them as a deduction. If your employer reimburses you for expenses you paid yourself, you can deduct those expenses, but you report the reimbursement as non-taxable income separately.
You should keep receipts for at least six years in case the CRA requests them during an audit. It's good practice to store digital copies online as a backup.
Yes, self-employed individuals can deduct eligible moving expenses when relocating for business reasons, using the same 40-kilometre distance rule. The expenses reduce your business income and should be tracked separately from other business deductions.