Moving Expenses: Are They Still Tax Deductible?

19 July 2025

Moving can be an exciting yet stressful experience. Whether you're relocating for a new job opportunity, a fresh start, or family reasons, the costs can add up quickly. If you’ve moved in the past, you may have deducted your moving expenses from your taxes to ease the financial burden.

But here's the million-dollar question: Are moving expenses still tax deductible? Well, the answer isn’t as straightforward as it used to be. Thanks to some tax law changes, the eligibility for this deduction has significantly narrowed. Let’s break it all down, so you know exactly where you stand.

Understanding Moving Expense Deductions

Once upon a time, moving expenses were a widely available tax deduction. If you moved for work and met certain requirements, you could deduct costs like transportation, storage, and even lodging. This helped taxpayers offset the financial strain of relocating.

But in 2017, the Tax Cuts and Jobs Act (TCJA) shook things up. This major reform changed the rules—eliminating the moving expense deduction for most taxpayers from 2018 to 2025, with only a few exceptions. So, unless you qualify under those exceptions, you can kiss that tax break goodbye—at least for now.

Who Can Still Deduct Moving Expenses?

Even though the TCJA suspended the deduction for most people, there are still a couple of groups who can benefit from it:

1. Active-Duty Military Personnel

If you're a member of the armed forces moving due to a military order, you’re in luck! The IRS allows active-duty military members and their families to continue deducting their moving expenses. But there's a catch—it must be a permanent change of station for you to qualify.

2. Certain State-Level Deductions

While the federal tax deduction is off the table for most people, some states still allow moving expense deductions on state tax returns. States like California, New York, and Pennsylvania have different rules, so it’s worth checking local regulations to see if you qualify.

What Moving Expenses Are Deductible for Eligible Taxpayers?

If you do qualify for a deduction, here’s the good news: Many of the same expenses that were deductible before 2018 are still eligible.

Deductible Moving Expenses

- Transportation Costs – The cost of moving your belongings, including hiring a moving truck or professional movers.
- Storage Fees – Costs incurred for temporary storage of your belongings.
- Travel Expenses – Gas, tolls, and lodging while traveling to your new home (but not meals).
- Shipment of Household Goods – Any costs associated with shipping your personal belongings.

Non-Deductible Moving Expenses

- Real Estate Costs – Selling or buying a home (e.g., realtor fees, closing costs, mortgage penalties).
- Meals During the Move – Although lodging is covered, meals don’t make the cut.
- Temporary Housing – Staying in a hotel or rental before moving into your permanent home isn’t deductible.
- Job Hunting Costs – Looking for a job in a new location doesn’t count as a moving expense.

How to Claim Moving Expenses on Your Taxes

If you're eligible for the deduction, claiming your moving expenses isn’t too complicated. You'll need to file Form 3903 (Moving Expenses) along with your tax return. This form helps you calculate and report your deductible expenses.

Key Steps to Claiming the Deduction:

1. Keep Receipts and Records – The IRS loves documentation! Save all receipts related to your move.
2. Determine Your Qualified Expenses – Make sure every expense you plan to deduct meets the IRS criteria.
3. File Form 3903 – Fill out this form and attach it to your tax return.
4. Deduct Only Reimbursed Expenses – If your employer reimbursed you for moving costs, you can only deduct the portion you paid out of pocket.

Can Employers Cover Moving Costs?

Yes! Some employers offer relocation assistance to help cover moving costs. However, thanks to the TCJA, any employer-reimbursed moving expenses are now considered taxable income. This means that if your company pays for your move, you’re still on the hook for taxes on the reimbursement.

Before accepting a moving package from your employer, it’s wise to check the tax implications so you're not hit with an unexpected tax bill.

Will Moving Expense Deductions Return?

The TCJA's suspension of moving expense deductions is set to last through 2025. However, there’s always a chance that new tax laws could reinstate or modify the deduction before then.

If you’re planning a move in the next few years, keep an eye on any changes in tax legislation—because the rules might shift again.

Alternatives to Offset Moving Costs

Since most people can’t deduct moving expenses anymore, here are a few ways to ease the financial load:

1. Negotiate with Your Employer

Even though moving reimbursements are taxable, asking for a relocation stipend or a signing bonus can help cover moving expenses.

2. Track Job-Related Moving Expenses

While you can’t deduct them, knowing how much your move cost might help in negotiating future salaries or benefits.

3. Plan Your Move During Off-Peak Seasons

Moving costs can skyrocket in summer months. If possible, relocate during the fall or winter when prices tend to drop.

4. Declutter and Sell Unwanted Items

The less you move, the less you pay! Selling furniture, clothes, or electronics can help you lighten the load and make some extra cash.

5. Look for Moving Discounts

Many moving companies offer AAA, military, or student discounts—so don't be shy about asking!

Final Thoughts

So, are moving expenses still tax deductible? For most people, no—but for active-duty military personnel, yes. Unless you're serving in the armed forces or live in a state with special tax rules, you’ll have to find other ways to manage your moving costs.

While tax laws can be frustrating, understanding the rules helps you plan better. And who knows? Maybe in the future, Congress will bring back the deduction for everyone. Until then, being strategic about your move can help you save money in more ways than one.