MOVING EXPENSES

Line 21900 allows a deduction for reasonable moving expenses when a taxpayer moves to work, carry on a business, or study full time at a post-secondary institution. The claim is made on Form T1-M.

ELIGIBILITY

The new home must be at least 40 kilometres closer (by the shortest normal route) to the new work or school location than the old home.
The move must be to start a job or business at the new location, or to attend full-time post-secondary studies.
Both homes generally must be in Canada; full-time students moving to or from Canada for studies are an exception.
The move need not be to a new employer; transfers within the same company qualify.

ELIGIBLE EXPENSES

Transportation and storage of household effects.
Travel costs, including vehicle expenses, meals and lodging en route for the taxpayer and family.
Temporary living expenses near either home for up to 15 days.
Cost of cancelling a lease on the old home.
Costs of selling the old home: real estate commission, legal fees, advertising, mortgage penalty.
Legal fees and land transfer tax on buying the new home, if the old home was sold because of the move.
Costs of maintaining the vacant old home (interest, property tax, insurance, utilities), up to $5,000.
Incidental costs of changing addresses, utility connections and driver's licences.

SIMPLIFIED METHOD

Instead of keeping receipts for meals and vehicle expenses, the taxpayer can use the CRA's flat rates: $23 per meal, up to $69 per day per person, and a per-kilometre vehicle rate that varies by province and is updated each year.

LIMITS

The deduction cannot exceed net employment or self-employment income earned at the new location (or, for students, taxable scholarships and research grants).
Unused amounts can be carried forward to the next year against income from the new location.
Expenses reimbursed by an employer cannot be claimed unless the reimbursement is included in income.

LABOUR MOBILITY DEDUCTION FOR TRADESPEOPLE

Workers in construction trades who temporarily relocate to work, and who maintain their ordinary residence, can deduct eligible temporary relocation expenses (travel, lodging, meals) on line 22900 with Form T777 or Form TL2 for long distance drivers. The limit was $4,000 per year from 2022; the 2026 Spring Economic Update proposed increasing it to $10,000, indexed, and reducing the distance test from 150 km to 120 km for 2026 and later years.