Moving Expenses: The 40-Kilometre Rule and What You Can Claim
By Ravi’s Accurate Tax Services | Updated October 8, 2026
Moving for a new job, business location or full-time post-secondary study may qualify for a tax deduction. Start by checking the reason for the move, the distance and the income available to support your claim.
Understand the distance test
Your new home must be at least 40 kilometres closer to the new workplace or school, measured using the shortest usual public route. Moving 40 kilometres by itself does not establish eligibility.
For work or business moves, the deduction is limited to eligible employment or self-employment income at the new location. Eligible unused amounts may be carried forward against that income. Student moves have different limits: the deduction generally applies against taxable scholarships, bursaries, fellowships, certain prizes or research grants. Moving for summer work can be assessed under the work rules.
Review costs and reimbursements
Qualifying costs may include movers, storage, travel and up to 15 days of temporary living expenses, subject to CRA conditions. Employer reimbursements must reduce your claim unless included in income. Complete Form T1-M and keep supporting records.
Newcomers should check separately
The initial move to Canada is generally not deductible for a newcomer. A limited exception can apply to qualifying full-time students receiving taxable Canadian educational funding. Do not assume an overseas flight or immigration-related move qualifies.
Bring these records
Prepare the old and new addresses, move date, workplace or school address, start date, receipts, travel records, reimbursement details and income earned at the new location. These help our team assess the distance test and eligible amount.
Call Ravi’s Accurate Tax Services at 647-300-1516 or 905-798-3785. Serving Canada except Quebec.
CRA sources:
General information; individual circumstances determine eligibility.
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