Are moving expenses tax deductible?

Whether you’re moving across town or to another state, the costs can add up quickly. If you’re moving within a 100-mile radius, average costs run around $1,710, according to Angi. But long-distance moves can run you $2,700 – $10,000.

If you’re facing significant moving costs, it’s easy to see how these could put a burden on your finances. Of course, it would be ideal if you could get a tax break on your moving expenses, especially if you’re making the move for work. But, as of writing, only eligible U.S. military members qualify for a federal moving expense tax deduction.

Even if your move doesn’t qualify for a federal tax break, a state-level tax deduction could come into play.

When can you deduct moving expenses?

Although the idea of writing off your moving expenses sounds appealing, it’s only an option for eligible military members and their dependents. Even then, military members can only write off their moving costs if they incur unreimbursed moving expenses due to a permanent change of station.

Beyond a permanent change. of station, eligible members of the U.S. Armed Forces must be on active duty to qualify. Starting in 2026, the rules are expected to allow eligible members of the intelligence community to partake in moving expense tax deductions.

If you aren’t sure whether you qualify to deduct your moving expenses on your federal tax return, the IRS’ interactive tool can help. You’ll enter some details about your situation to find out if you qualify.

What moving expenses are tax deductible?

For active-duty military members moving due to a permanent change of station, certain moving expenses qualify for a tax deduction. Eligible military members can also claim these deductions for their spouses and dependents.

The IRS considers a moving expense almost anything that you'll spend money on during your move.

However, you can't deduct any of these expenses if the government will pay you back for them. If you rent a moving truck to take your belongings to your new base and the government reimburses your rental fee, you can't deduct that cost on your income taxes.

Here are some of the most common examples of deductible moving expenses:

• Transportation costs: This includes things like moving trucks, gas, tolls, or even mileage for your own vehicle. Notably, you cannot deduct the costs of moving or storing things you bought on the way to your new home.
• Supplies and assistance: Professional movers, packing materials, including boxes, tape and bubble wrap, and moving insurance.
• Travel costs: Travel costs to your new home, whether you are driving or flying, and any hotel rooms that you book during the days on which you’re traveling during your move.
• Storage costs: If you need to store things temporarily, you can deduct those costs. Usually, the limit for this write-off is 30 consecutive days from leaving the old home to arriving at the new one.

If a cost fits within one of the categories above and is “reasonable and necessary,” then you should have no trouble writing it off.

What moving expenses aren’t tax deductible?

While most of the unreimbursed moving expenses qualify for a tax deduction, eligible military members may still find that some costs aren’t tax deductible. A few things moving military members cannot deduct include:

• Costs related to buying or selling a home
• Costs related to entering or breaking a lease (like security deposits)
• Carpet refitting
• Mortgage penalties
• Real estate taxes
• Home improvements to sell the house
• Return trips to the old home
• Vehicle tags or a driver’s license
• Long-term storage costs
• Meals during the move

Also, you cannot deduct any ‘lavish’ lodging or unnecessary side trips.

How much could you save on your taxes?

When you deduct eligible moving expenses from your tax return, it lowers your taxable income, not your tax bill directly. With that, how much you’ll save on your tax bill varies based on your moving expenses and other income factors.

Let’s say a single active-duty military member accumulated $5,000 in qualified moving expenses on their move to a new duty station. At tax time, they take a $5,000 tax deduction. If the service member is in the 22% marginal tax bracket, that would potentially lower their tax bill by $1,100.

The distance involved in the move can come into play, especially when using your own vehicle to make the move. The IRS has a special mileage rate, at $0.21 per mile for 2025, for moving military members. For example, if you moved 1,000 miles, this would add up to a $210 tax deduction. But if you only moved 100 miles with your vehicle, the mileage deduction would add up to $21.

How to deduct your moving expenses on your federal return

If you are eligible to deduct moving expenses, you’ll start by filling out IRS Form 3903, which you use to determine how much you can deduct.

As you fill out the form, you’ll need to provide details about your moving costs. Some might include storage fees, shipping costs, movers, renting a truck, and moving insurance. Plus, you’ll share any travel, gas, mileage, and lodging costs you incurred during your move.

In order to make your life easier at tax time, it’s helpful to diligently log your expenses throughout the move and hang onto any expenses that pop up.

State tax deductions for moving expenses

Depending on where you are moving to and from, you might qualify for a state income tax deduction. Some states offer these to movers with or without a military affiliation.

A few states that offer some tax deductions for movers include:

• Arkansas
• California
• Hawaii
• Massachusetts
• New Jersey
• New York
• Pennsylvania

Generally, the moving expenses eligible for a tax deduction at the state level align with the federal rule. But if you plan to take a state moving expense tax deduction, make sure to read the fine print of your state’s tax code.

The bottom line: Get a tax break for your move

Most American movers cannot deduct moving expenses from their tax return. But eligible military families, and soon eligible intelligence community members, can deduct certain moving expenses from their tax return.

Although moving tax breaks don’t exist for most, that doesn’t mean you can’t shop for a home when the time is right. Plus, homeowners can potentially tap into other types of tax deductions, like property taxes and mortgage interest. If you are ready to purchase a home, start the mortgage approval process today.