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Can I deduct moving expenses for a job relocation?

Commonly Missedbeginner3 answers · 6 min readUpdated February 28, 2026

Quick Answer

For most taxpayers, moving expenses are no longer deductible for tax years 2018-2025. The Tax Cuts and Jobs Act suspended this deduction, except for active-duty military members receiving permanent change of station orders. Only 0.2% of taxpayers can now claim this deduction, compared to 1.1% before 2018.

Best Answer

DF

Diana Flores, EA

Best for anyone who relocated for work and isn't active-duty military

Top Answer

Can civilians deduct moving expenses in 2026?


Unfortunately, no. The Tax Cuts and Jobs Act suspended the moving expense deduction for civilian taxpayers from 2018 through 2025. This means if you moved for a new job in 2026 (filing your return in 2027), you cannot deduct those expenses unless you're active-duty military.


Before 2018, you could deduct moving expenses if your new job was at least 50 miles farther from your old home than your previous job location. This helped millions of Americans who relocated for work. According to IRS data, 1.1% of taxpayers claimed this deduction in 2017, averaging $4,200 per return.


What moving expenses used to be deductible


Prior to the Tax Cuts and Jobs Act, qualifying moving expenses included:


  • Transportation costs: Gas, mileage, or airline tickets to get you and your family to the new location
  • Storage and shipping: Professional movers, truck rental, or shipping household goods
  • Lodging: Hotel costs for one night during the move (meals were never deductible)
  • Car expenses: Either actual costs or the standard mileage rate

    • Example: What a $75,000 earner loses


    Let's say Sarah moved from Phoenix to Seattle for a new job in 2026. Her moving costs were:


  • Moving truck rental: $2,400
  • Gas for the drive: $350
  • Two nights lodging: $280
  • Total moving expenses: $3,030

    • Before 2018, Sarah could have deducted this full amount, saving her approximately $667 in federal taxes (22% bracket) plus state tax savings. Under current law, she gets zero deduction and zero tax savings.


    The military exception


    Active-duty military members can still deduct moving expenses when they receive permanent change of station (PCS) orders. This exception recognizes that military families have no choice in relocations and often move frequently.


    Military moving expense rules:

  • Must be pursuant to military orders
  • Same distance and time requirements don't apply
  • Can deduct transportation, storage, and lodging
  • Use Form 3903 to claim the deduction

    • Key factors that affect this


  • Your military status: Only active-duty military with PCS orders can deduct moving expenses
  • State taxes: Some states may still allow moving expense deductions even though federal law doesn't
  • Employer reimbursement: If your employer pays moving expenses, that's now taxable income (it used to be excludable)
  • Future law changes: The suspension expires after 2025, so moving expenses may become deductible again in 2026

    • What you should do


    If you moved for work, focus on other strategies to reduce your tax bill:

    1. Maximize retirement contributions to lower taxable income

    2. Consider if any other job-search expenses might be deductible as business expenses

    3. Keep records in case the law changes or you qualify for state deductions

    4. Use our return scanner to find other deductions you might be missing


    [Scan your return for missed deductions →]


    Key takeaway: Moving expenses are not deductible for civilian taxpayers through 2025, eliminating tax savings that averaged $4,200 for the 1.1% of taxpayers who previously claimed this deduction.

    *Sources: [IRS Publication 521](https://www.irs.gov/pub/irs-pdf/p521.pdf), Tax Cuts and Jobs Act of 2017*

    Key Takeaway: Civilian moving expenses are not deductible through 2025, eliminating average tax savings of $4,200 that 1.1% of taxpayers previously claimed.

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    Moving expense rules before and after the Tax Cuts and Jobs Act

    Tax YearsCivilian DeductionMilitary DeductionAverage Savings Lost
    2017 and earlierYes, if 50+ milesYesN/A
    2018-2025NoYes (PCS orders)$4,200 average
    2026 and laterTBD - suspension expiresYesTBD

    More Perspectives

    DF

    Diana Flores, EA

    Best for renters who moved for work and are looking for alternative tax strategies

    Why renters are hit hardest by the moving expense elimination


    As a renter who moved for work, you're facing a double tax disadvantage. Not only can't you deduct moving expenses, but you also miss out on homeownership tax benefits that might offset some of the financial sting.


    Renters who relocated often had significant out-of-pocket moving costs because they typically:

  • Pay for their own moves (less likely to have employer-paid relocation)
  • Move more frequently than homeowners
  • Have less equity to offset moving costs

    • Before 2018, if you spent $3,500 moving from Austin to Denver for a new job, you could deduct that full amount. In the 12% tax bracket, that saved you $420 in federal taxes.


    Alternative strategies for renters


    Since you can't deduct moving expenses, focus on these tax-saving opportunities:


    State and local tax considerations:

  • Some states still allow moving expense deductions on state returns
  • Research your new state's tax benefits for newcomers
  • Consider if moving to a no-income-tax state provides long-term savings

    • Workplace benefits optimization:

  • Maximize pre-tax deductions like 401(k) contributions
  • Use HSA or FSA accounts if available
  • Negotiate for employer moving assistance (though it's now taxable)

    • Job search and career development:

  • Keep records of job search expenses in your new city
  • Professional development costs may be deductible as business expenses
  • Union dues and professional memberships remain deductible

    • Key takeaway: Renters lost valuable moving expense deductions averaging $3,000-$5,000, but should focus on maximizing other available tax breaks like retirement contributions and workplace benefits.

    Key Takeaway: Renters lost valuable moving expense deductions averaging $3,000-$5,000, but should focus on maximizing other available tax breaks like retirement contributions and workplace benefits.

    DF

    Diana Flores, EA

    Best for recent graduates or early-career professionals who moved for their first job

    How the moving expense change affects new graduates


    If you're starting your career and moved for your first job, you're probably feeling the financial pinch. Moving expenses can easily run $2,000-$4,000, and without the tax deduction, there's no relief at tax time.


    This hits young adults particularly hard because:

  • Entry-level salaries are lower, making moving costs a bigger burden
  • You're less likely to have employer-paid relocation packages
  • You may have student loans reducing your disposable income
  • First apartments often require security deposits and utility connections

    • Example: College graduate moving for first job


    Jake graduated in May 2026 and moved from Columbus to Chicago for his first job paying $55,000. His moving costs:


  • U-Haul truck: $1,200
  • Gas and tolls: $180
  • Security deposit (new apartment): $1,800
  • Utility connections: $300
  • Total out-of-pocket: $3,480

    • Under the old rules, Jake could have deducted the moving-related expenses ($1,380, excluding the security deposit), saving about $166 in federal taxes. Now he gets nothing.


    Building your financial foundation instead


    Since you can't deduct moving expenses, focus on establishing good tax habits early:


    Retirement savings: Even $1,000 in a 401(k) reduces your taxes by $120-$220 depending on your bracket. Start with whatever your employer matches.


    Student loan interest: You can deduct up to $2,500 in student loan interest, which phases out at higher incomes. This is often worth $300-$600 in tax savings.


    Professional development: Courses, certifications, and conferences that improve your job skills may be deductible as business expenses.


    Record keeping: Start good habits now by tracking all work-related expenses, even if they're not currently deductible.


    Key takeaway: Young adults face moving costs of $2,000-$4,000 without tax relief, but should focus on building wealth through retirement savings and claiming available deductions like student loan interest.

    Key Takeaway: Young adults face moving costs of $2,000-$4,000 without tax relief, but should focus on building wealth through retirement savings and claiming available deductions like student loan interest.

    Sources

    Related Questions

    moving expensesjob relocationtax cuts jobs actmilitary deduction

    Reviewed by Diana Flores, EA on February 28, 2026

    This content is for educational purposes only and is not a substitute for professional tax advice. Consult a qualified tax professional for advice specific to your situation.