Are Moving Expenses Tax Deductible? What to Know

Moving can be an enormous lifestyle transition — not to mention, an expensive one. Whether you’re moving out of state or just a couple of hours away, the cost of transporting all your items to a new home can quickly add up. It’s only natural then that many people wonder, “Are moving expenses tax-deductible?” 

The truth is, many households aren’t eligible to receive tax deductions for moving, so it’s best to maintain realistic expectations as you look into potential write-offs. But there are notable exceptions, which we’ll cover below.* We’ll also share some other ways to save on moving expenses besides a tax write-off.

Are Moving Expenses Tax Deductible at the Federal Level?

In the United States, deductions for moving are hard to obtain. Back in 2017, the Tax Cuts and Jobs Act changed the criteria on who qualifies for these tax deductions. Then, in 2025, the so-called One Big Beautiful Bill (H.R. 1) permanently eliminated moving tax write-offs at the federal level for most Americans, except for active military and intelligence personnel.

Tax deductions for moving: What military filers should know

So, are moving expenses tax–deductible when you serve in the U.S. military? The short answer is: Yes, but with a few caveats. Here’s what you need to know about the requirements for tax deductions for moving if you’re a current member of the armed forces. 

Initial qualifiers

To write off these expenses, you must hold an active-duty armed forces or intelligence position, and the move must be pursuant to a military order resulting in a permanent change of station (PCS). An eligible PCS move includes any of the following scenarios: 

• Moving from home to the first post of duty after joining the military or being reinstated

• Moving from one permanent station to another while on active duty

• Moving from the last post to another U.S. location within one year of finishing active duty

In some PCS cases, the moving expenses from a service member’s spouse or dependents might also be tax-deductible. However, you can’t write off expenses reimbursed or paid for by the U.S. government. You also can’t write off the cost of any meals while in transit. 

Distance test

The next criterion to secure tax deductions for moving is known as the distance test, which states that the distance between your new station and your previous home must be at least 50 miles in order to qualify for a write-off. The one exception is if you’re moving after a permanent change in military status, such as retirement or discharge.  

Time test

The timing of your move is another important factor that determines whether or not you’re eligible for tax deductions. The time test requires you to start working full-time (at least 40 hours per week) at your new post for a minimum of 39 weeks within the first 12 months of moving. If an extenuating circumstance causes you to relocate alone before the rest of your household, you can write off the unreimbursed costs of their move.

Required tax forms

To file for a tax deduction on moving expenses, fill out and submit an IRS Form 3903. If your new post is outside the United States, you must be a U.S. citizen or a legal permanent resident to qualify for these write-offs. Here’s a basic outline of how to complete your Form 3903 and calculate which moving expenses are tax-deductible: 

• Claim the household items and personal effects you transported or kept in storage.

• Claim direct moving costs and other out-of-pocket travel costs while you’re in transit.

• Calculate the mileage rate if making the trip to your new home in your personal vehicle.

• Subtract all government reimbursed expenses from the total moving cost. Include them in the form if not listed on your W-2.

• Attach the Form 3903 to your other tax documents (e.g., Form 1040, 1040-SR, 1040-NR, etc.), then file via Schedule 1.

Are Moving Expenses Tax Deductible at the State Level? 

While federal tax deductions for moving are only accessible to active military or intelligence personnel, civilians still might qualify for some write-offs, based on the state they live in. Here’s what to know about tax deductions at the state level.

Which states still allow moving expense deductions? 

State tax laws can change anytime, so it’s important to check with the specific state you’re filing in for accurate and current information. You can use the Federation of Tax Administration (FTA) resource page to locate your state’s Department of Revenue and stay up-to-date on the latest regulations. 

With that said, these five states will let you write unreimbursed moving expenses off your income taxes if the relocation is job-related.

• New York

• Massachusetts

• Arkansas

• California 

• Hawaii

What Moving Expenses are Tax-Deductible?

We’ve answered the question, “Are moving expenses tax-deductible?” Now let’s talk about which moving expenses qualify for write-offs. 

As a general rule, you must be able to prove that the moving expenses are both reasonable and necessary to meet the criteria for a tax deduction. They also can’t be reimbursed by the government (or another employer when filing for state write-offs). Here are the most common moving expense tax deductions.

• Handling personal belongings: The cost to pack, crate, haul, or store your household items

• Mileage rate (if driving): The IRS has set this at 20.5 cents per mile

• Direct moving costs: Professional mover fees, truck or trailer rentals, packing materials, insurance coverage, or in-transit storage

• Travel-related costs: Fuel, hotels, tolls, parking fees, airfare, or car shipments (Don’t forget, you can’t include meals.)

Help With Moving Expenses: Tips for Saving Money During Your Move

Whether or not your moving expenses are tax-deductible, there are other steps you can take to offset the total cost and make your transition feel less stressful. These practical strategies will help with moving expenses at each stage in the process. 

Be flexible with your moving timeline

Summer tends to be the peak moving season, and it’s not hard to see why. Children are out of school, and the weather is clear and sunny. But with this higher volume of summer relocations comes fewer available truck rentals and moving services, which leads to higher costs. If your schedule is flexible, one of the easiest ways to curb expenses is to move in the off-season (fall or winter), when there’s less demand.  

Declutter and bring less items with you

The fewer items you pack, the lighter your truck load will be, which means lower transportation costs (and less time spent on labor). Sort through all your items before you put them in boxes and make separate piles for what you can donate, recycle, or throw out. 

Compare DIY moves and professional movers

Renting a truck and DIY-ing your move is often the cheapest solution upfront, but it also requires significant time and effort. It’s your job to handle the manual labor — not to mention, unexpected fuel and travel costs, or missed wages from extra time off work can accumulate quickly. 

Another option is to hire professional packing and moving services to do it all for you. This convenient and efficient option might be more affordable than you think. Plus, having your items treated with expert care and precision is worth the investment.

Get multiple quotes from different companies

Obtain written price quotes and estimates from at least three different moving companies. If one quote is much cheaper than the rest, find out why. A much lower quote can be a red flag that you’re dealing with an unreliable moving service.

Make Your Next Move With Colonial Van Lines

Even if you don’t qualify for a moving expense tax deduction, careful planning and the right moving partner can still help you keep costs under control.

Colonial Van Lines helps both individuals and families start new chapters all across the country. Our expert team of long-distance movers will handle each step in the relocation process, from packing boxes and loading the truck to transporting it all to your new home. Contact us for a free moving quote and see how Colonial Van Lines can make your move as smooth and efficient as possible.

*The purpose of this article is informational. For personalized tax guidance, please consult with a qualified tax professional.