Quick Answer
Several states still allow moving expense deductions even though the federal deduction is suspended through 2025. California, New York, Pennsylvania, and about 8-12 other states maintained their moving expense deductions, potentially saving taxpayers $200-$800 in state taxes depending on income level and moving costs.
Best Answer
Diana Flores, EA
Best for taxpayers taking the standard deduction who moved between states
Which states still allow moving expense deductions?
Even though federal moving expense deductions are suspended through 2025, many states never changed their rules. This creates a valuable opportunity for state tax savings that most people miss.
States that generally allow moving expense deductions include:
*Note: State tax laws change frequently. Always verify current rules with the specific state tax authority.*
How state moving deductions work
Most states that allow moving expenses follow the pre-2018 federal requirements:
Distance test: Your new job must be at least 50 miles farther from your old home than your previous job was. If you didn't have a previous job, the new job must be at least 50 miles from your old home.
Time test: You must work full-time for at least 39 weeks during the 12 months after you move. Self-employed individuals need 78 weeks over two years.
Example: California moving expense savings
Sarah moved from Sacramento to San Diego for a new job paying $85,000. Her moving expenses were:
Federal savings: $0 (deduction suspended)
California savings: $4,800 × 9.3% = $446 in state tax savings
For someone in California's highest bracket (13.3%), the same expenses would save $638 in state taxes.
State-specific considerations
California specifics:
New York specifics:
High-tax state advantages:
Documentation requirements
To claim state moving expense deductions, keep detailed records:
Key factors that affect state deductions
What you should do
1. Check your state's specific rules: Tax laws vary and change frequently
2. Gather all documentation: Start collecting receipts immediately when planning a move
3. Calculate potential savings: Estimate your state tax rate times moving expenses
4. Consider professional help: Multi-state returns can be complex
5. Use our refund estimator to see if claiming state moving expenses increases your overall refund
[Estimate your refund with state deductions →]
Key takeaway: States like California, New York, and Pennsylvania still allow moving expense deductions worth $200-$800 in tax savings, even though the federal deduction is suspended through 2025.
*Sources: [California FTB Publication 1001](https://www.ftb.ca.gov/forms/2023/2023-1001.pdf), [New York State Tax Department](https://www.tax.ny.gov/)*
Key Takeaway: States like California, New York, and Pennsylvania still allow moving expense deductions worth $200-$800 in tax savings, even though the federal deduction is suspended through 2025.
State moving expense deductions and potential tax savings by income level
| State | Deduction Allowed | State Tax Rate Range | Savings on $3,000 Move |
|---|---|---|---|
| California | Yes | 1% - 13.3% | $30 - $399 |
| New York | Yes | 4% - 10.9% | $120 - $327 |
| Pennsylvania | Yes | 3.07% | $92 |
| Massachusetts | Limited | 5% | $150 |
| New Jersey | Yes | 1.4% - 10.75% | $42 - $323 |
| Texas | N/A | No state income tax | $0 |
| Florida | N/A | No state income tax | $0 |
More Perspectives
Diana Flores, EA
Best for renters who moved between states and want to maximize state tax benefits
Why renters should focus on state moving deductions
As a renter, you likely don't have mortgage interest or property tax deductions to reduce your tax bill. State moving expense deductions become even more valuable because they might be one of your few opportunities for significant tax savings.
Renters often have substantial moving costs because:
Real-world renter example
Mike rented in Portland, Oregon and moved to San Francisco for a tech job. His moving costs:
Federal tax savings: $0
California state tax savings: $3,660 × 9.3% = $340
This $340 savings helps offset some of the financial stress of relocating and starting fresh in an expensive city.
Multi-state filing considerations
When you move between states, you often need to file returns in both:
Part-year resident returns: You'll file as a part-year resident in both your old and new states, reporting income earned in each location.
Moving expense allocation: Generally, you claim the moving expense deduction in your new state of residence, since that's where you're establishing your new tax home.
State reciprocity: Some neighboring states have agreements that simplify multi-state filings, but moving expenses are usually handled separately.
Key takeaway: Renters who moved to states like California or New York can often save $200-$500 on state taxes through moving expense deductions, providing welcome relief from relocation costs.
Key Takeaway: Renters who moved to states like California or New York can often save $200-$500 on state taxes through moving expense deductions, providing welcome relief from relocation costs.
Diana Flores, EA
Best for recent graduates or early-career professionals navigating their first multi-state move
Your first multi-state move and taxes
If this is your first time moving between states for work, the tax filing process can feel overwhelming. But if you moved to a state that allows moving expense deductions, you might have a valuable tax break waiting.
This is especially important for young adults because:
Example: New grad moving to New York
Emma graduated from University of Michigan and moved to New York City for her first job paying $58,000. Her moving expenses:
New York allows this deduction, saving Emma approximately $130 in state taxes (7% bracket). While not huge, it covers a month of student loan payments or groceries.
Learning multi-state tax filing
Your first multi-state return teaches important lessons:
Residency rules: Understanding how states determine residency affects your entire tax situation, not just moving expenses.
Record keeping: Starting good documentation habits now will benefit you throughout your career, especially if you move again.
State differences: Learning that federal and state tax rules can differ helps you spot future opportunities.
Professional development: This complexity might justify hiring a tax professional or investing in good tax software.
Building your tax knowledge base
Use this moving expense research as a foundation:
Key takeaway: Young adults moving to states like California, New York, or Pennsylvania can save $100-$300 through moving expense deductions while building valuable tax knowledge for their careers.
Key Takeaway: Young adults moving to states like California, New York, or Pennsylvania can save $100-$300 through moving expense deductions while building valuable tax knowledge for their careers.
Sources
- California FTB Publication 1001 — California moving expense guidelines
- New York State Tax Department — New York state tax regulations
Related Questions
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.