CRA Form T1-M Moving Expenses Deduction Guide 2026

1. Who Can Claim Moving Expenses

The federal moving-expense deduction is available for an eligible relocation where an individual establishes a new home to work, run a business at a new location, or attend a qualifying post-secondary program as a full-time student. The new home must generally be at least 40 kilometres closer to the new work location or school, measured by the shortest public route. Form T1-M calculates the allowable deduction, which is claimed on Line 21900 of the federal return.

2. Income Limitation and Carry-Forward Rules

Moving expenses are not an unlimited deduction against all sources of income. For an employment or self-employment move, eligible expenses are deductible from the employment or self-employment income earned at the new work location. For a full-time student, eligible expenses are deducted from the taxable amounts of qualifying scholarships, fellowships, bursaries, certain prizes and research grants that must be included in income.

3. What Counts as an Eligible Moving Expense

CRA allows a broad range of reasonable expenses when they are incurred because of an eligible relocation. The rules are specific to the type of expense, so an item should not be described as automatically 100% deductible without checking the statutory conditions and documentation requirements.

4. Expenses CRA Does Not Allow

Not every cost connected with changing homes is a moving expense. CRA identifies several specifically ineligible personal costs.

5. Temporary Living Expenses and the 15-Day Limit

CRA allows temporary living expenses for meals and temporary lodging near the old or new home for a maximum of 15 days. The 15-day rule is a maximum for this category, not a general 15-day deadline for the whole moving claim.

6. Simplified Meal and Vehicle Methods

For eligible travel related to a qualifying move, CRA permits taxpayers to choose detailed or simplified methods for certain meal and vehicle expenses. The simplified method avoids calculating actual vehicle costs and detailed meal receipts, but the taxpayer must still maintain sufficient records supporting the trip and kilometres. CRA's currently published general meal table shows a $23-per-meal rate and $69-per-day maximum for the 2025 tax year; the applicable rate should always be checked for the tax year being filed rather than automatically labeling the 2025 figure as a 2026 rate.

7. Vehicle Expense Calculation for a Move

A taxpayer can generally choose the simplified or detailed vehicle method for eligible moving travel. Under the simplified method, the number of kilometres driven for the move is multiplied by the applicable CRA cents-per-kilometre rate for the province or territory where the travel began. Under the detailed method, the taxpayer claims the actual vehicle expenses related to the moving kilometres.

8. Employment, Self-Employment and Student Scenarios

The same 40-kilometre test applies across the main eligibility categories, but the income against which the deduction may be used is different.

9. Moving To or From Canada

Cross-border moves require special care. CRA's current eligibility guidance states that an employed or self-employed individual can potentially qualify for certain moves to Canada, from Canada, or between two locations outside Canada when the taxpayer is a factual or deemed resident of Canada and moved from the place where they normally lived to another place where they normally live. Separate restrictions can apply to newcomers and non-residents. A general statement that every immigrant move to Canada is automatically deductible or automatically denied is therefore incorrect.

10. Employer Reimbursements and Amounts Paid in a Later Year

An employer reimbursement does not necessarily eliminate the moving-expense deduction, but the taxpayer cannot claim the same expense twice. CRA generally requires the reimbursement or allowance to be included in income or the moving expense claim to be reduced by the amount received.

11. Form T1-M and Line 21900 Filing Workflow

Form T1-M is used to calculate the moving-expense deduction. The calculated eligible amount is claimed on Line 21900 of the federal T1 return. Supporting documents are generally retained rather than automatically submitted, but CRA can request them during review.

12. Unused Expenses, Future Years and Special Situations

Moving expenses can produce an unused balance when eligible expenses paid in the year exceed the permitted eligible income for that year. CRA allows that unused amount to be carried forward, but the carry-forward remains restricted to the corresponding eligible income category.

Frequently Asked Questions