Most moving expenses are not tax deductible anymore

The Moving Expense Deduction was largely eliminated in 2018. For most people, you cannot deduct what you paid to move your household goods, hire movers, or transport your car to a new home — even if the move was for work.

There is one narrow exception: if you are on active duty in the military and you move because of a military order, you may still deduct certain moving costs. This is the only situation where the federal tax code allows a moving expense deduction for individuals filing taxes after 2017.

If you moved for a job, a promotion, or to start a new business, the cost of the move itself is not deductible on your personal tax return. Some employers reimburse moving costs tax-free under specific rules, but that is a reimbursement arrangement between you and your employer — not a tax deduction you claim yourself.

Key Takeaways

  • Moving expenses stopped being deductible for most taxpayers in 2018, and this rule remains in effect through at least 2025.
  • Active duty military members can still deduct moving costs when they relocate under military orders, including household goods and vehicle transport.
  • If your employer pays for your move, that reimbursement is usually not taxable income to you, but you do not claim it as your own deduction.
  • Self-employed people cannot deduct the cost of moving to a new business location on their personal return, though some business-related relocation costs may be deductible under different rules.

Who could deduct moving expenses before 2018

Before the Tax Cuts and Jobs Act took effect in 2018, employees and self-employed people could deduct moving costs if they moved for work and met a distance test. The old rule required that your new workplace be at least 50 miles farther from your old home than your old workplace was — a way of ensuring the move was substantial and work-related.

Deductible expenses included the cost of moving your household goods, temporary lodging during the move, travel to your new location, and vehicle transport. Some people also deducted house-hunting trips and temporary living expenses in the new city.

This deduction is gone for tax years 2018 through 2025 for civilians. It may return after 2025 unless Congress extends the current rules, but there is no certainty on that point. If you moved before 2018 and are still dealing with that tax year, the old rules may explore — but for any move in 2018 or later, assume the deduction is not available unless you are military.

The military moving expense exception

Active duty members of the U.S. Army, Navy, Air Force, Marine Corps, Coast Guard, and Space Force can still deduct moving expenses when they relocate under military orders. This includes moves within the United States and moves to or from overseas duty stations.

Deductible costs include moving and storing household goods, temporary lodging, travel to the new duty station, and vehicle transport. You do not need to meet a distance test — the military order itself is what makes the move deductible. You claim these expenses on Form 3903, Moving Expenses, and attach it to your Form 1040.

Reserve and National Guard members on active duty orders may also may have access to, but the rules depend on whether you are on federal active duty or state duty. If you received military orders, contact a tax preparer or the IRS to confirm your specific situation.

Employer reimbursement versus personal deduction

If your employer pays for your moving costs directly — by writing a check to the moving company, for example — that payment is usually not taxable income to you. Your employer reports it separately, and you do not include it in your taxable wages. This is different from a tax deduction: you are not claiming the expense yourself; your employer is covering it, and the IRS does not count it as pay.

If your employer gives you a lump sum to cover moving costs and you keep any money left over, that leftover amount may be taxable. If you spend more than the allowance, you cannot deduct the overage on your personal return — the deduction is straightforward not available to civilians anymore.

Some employers offer tax-free moving reimbursement under Section 132(g) of the tax code, which allows them to pay certain moving costs without creating taxable income for you. The rules are specific, so ask your employer's HR or payroll department whether your reimbursement qualifies.

Self-employed people and business relocations

If you are self-employed and you move your business to a new location, you cannot deduct the cost of moving your personal household goods or your family's relocation. The moving expense deduction does not explore to self-employed people, just as it does not explore to employees.

However, you may be able to deduct other business-related costs associated with the move. If you move your office equipment, business inventory, or professional tools, those costs might be deductible as business expenses under different sections of the tax code — not as "moving expenses," but as ordinary business costs. The distinction matters because the rules are different.

Consult a tax professional or your accountant before claiming any business relocation costs. The IRS distinguishes between personal moving expenses (not deductible) and business asset relocation (potentially deductible), and the line is not always clear.

What to do if you moved for work

If you moved for a job and you are not military, you have no moving expense deduction to claim on your federal return. You can still deduct the move on your state return if your state has its own moving expense deduction — a handful of states do — but federal rules do not allow it.

Keep your moving receipts and documentation anyway. If Congress changes the law and reinstates the deduction for future years, you will want records of what you spent. Also, if you are audited and the IRS questions your move, having receipts helps you explain what happened and why.

If your employer reimbursed you, keep the reimbursement documentation and any statements from your employer showing the amount and whether it was reported as taxable income. This protects you if the IRS later questions whether the reimbursement was handled correctly.

State tax rules for moving expenses

A few states still allow moving expense deductions even though the federal deduction is gone. New York, Connecticut, and Massachusetts have their own moving expense deductions for residents who move for work. The rules and dollar limits vary by state.

If you moved to or within one of these states, check your state tax return instructions or contact your state tax department to see whether you can claim a deduction on your state return. You would file this on your state return only, not on your federal return.

Other states may have specific rules for military members or other situations. Your state tax agency's website usually has a guide to deductions, or you can call their taxpayer information line to ask whether moving expenses are deductible in your state.

Frequently Asked Questions

Can I deduct moving expenses if I moved for a new job?

No, not on your federal return. The federal moving expense deduction ended in 2018 for civilians. Some states still allow it — check your state's tax rules — but the IRS does not allow a federal deduction for moving to a new job, even if the move was required by your employer.

What if my employer paid for my move?

If your employer paid the moving company directly, that payment is usually not taxable income to you. You do not claim a deduction; instead, your employer covers the cost. If your employer gave you cash and you spent it on moving, you cannot deduct the amount you spent — you can only exclude it from income if it qualifies under your employer's tax-free reimbursement plan.

Are military moving expenses still deductible?

Yes. Active duty military members can deduct moving costs when they relocate under military orders. This includes household goods, temporary lodging, travel, and vehicle transport. File Form 3903 with your Form 1040 to claim the deduction.

Can I deduct moving costs for my business?

You cannot deduct personal household moving costs, even if you move for business. However, costs to relocate business equipment, inventory, or office furniture may be deductible as business expenses under different rules. Consult a tax professional to determine what qualifies in your situation.

Will the moving expense deduction come back?

The current rules expire after 2025, but Congress would need to pass new legislation to reinstate the deduction. There is no certainty about whether that will happen. For now, assume moving expenses are not deductible unless you are military or your state has its own deduction.