Moving is expensive. Between hiring movers, renting trucks, buying packing supplies, and covering travel costs, the bills add up fast. Naturally, one of the first questions people ask after a big move is whether any of those costs can reduce their tax bill. This moving tax deduction guide explains exactly who qualifies for a moving expense deduction in 2026, which expenses are eligible, which are not, and how to make sure you’re capturing every legitimate write-off available to you. The rules have changed significantly in recent years, and what applied a decade ago may no longer apply to your situation today.
Understanding where you stand before tax season arrives puts you in a far stronger position than scrambling to reconstruct receipts in April. Let’s break it down.
Can You Deduct Moving Expenses on Your Taxes in 2026?
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Here is the short answer: for most taxpayers, no. But there are important exceptions.
The Tax Cuts and Jobs Act (TCJA) of 2017 suspended the federal moving expense deduction for most taxpayers starting with the 2018 tax year. This suspension is currently in effect through the end of 2025, and unless Congress passes new legislation, it is expected to remain in place for the 2026 tax year as well.
Prior to the TCJA, any taxpayer who moved for work and met specific distance and time requirements could deduct qualified moving expenses. That broad deduction is no longer available for civilian workers. However, there is one significant group that still qualifies: active-duty members of the U.S. Armed Forces.
Who Qualifies for the Moving Expense Deduction in 2026?
Active-Duty Military Members
If you are an active-duty member of the military and you moved because of a permanent change of station (PCS), you can still deduct qualified moving expenses on your federal tax return. This applies regardless of whether you meet the distance or time tests that previously applied to civilian taxpayers.
A permanent change of station includes a move from your home to your first post of active duty, a move from one permanent post to another, and a move from your last post of duty to your home or a closer point in the United States after separation from service.
This deduction is claimed using IRS Form 3903 and is taken as an adjustment to gross income, meaning you do not need to itemize your deductions to claim it.
Civilian Taxpayers
If you are not an active-duty military member, the federal moving expense deduction is not available to you under current law. This applies even if you relocated specifically for a new job, even if your employer required the move, and even if the move was across the country.
However, there are two important areas where you may still find tax relief: state-level deductions and employer reimbursement treatment. Both are covered in detail below.
What Moving Expenses Are Deductible for Qualifying Taxpayers?
For active-duty military members who qualify, the IRS allows deductions for reasonable expenses related to moving your household goods and personal effects and traveling from your old home to your new home. Specifically, eligible expenses include the following.
Transportation and storage of household goods. This covers the cost of packing, crating, and transporting your belongings, as well as in-transit storage for up to 30 consecutive days. It also includes insurance for your goods during the move and the cost of shipping vehicles and pets.
Travel expenses to the new home. This includes the cost of transportation for you and your household members traveling from the old residence to the new one. If driving, you can deduct actual out-of-pocket expenses for gas and oil, or use the IRS standard mileage rate for moving (which is set annually and should be confirmed for the 2026 tax year). Lodging costs during the trip are also deductible.
What is not deductible. Even for qualifying military members, certain costs cannot be deducted. These include meals during the move, house-hunting trip expenses, temporary living expenses at the new location, costs of breaking a lease, real estate closing costs, mortgage penalties, security deposits, and any expenses related to buying or selling a home. The deduction is strictly limited to the physical act of moving yourself and your belongings from one home to another.
State Moving Expense Deductions: Don’t Overlook This
While the federal deduction is off the table for civilians, several states have preserved their own moving expense deductions. State tax laws vary widely, and some states continue to allow residents to deduct qualified moving expenses on their state returns even though the federal deduction has been suspended.
States that have historically allowed moving expense deductions independently of federal rules include New York, California, Pennsylvania, and several others. However, state tax codes change frequently, and eligibility rules differ from state to state. Before assuming you qualify, check your specific state’s current tax laws or consult a tax professional familiar with your state’s filing requirements.
If you moved to or from a state that still offers this deduction, the savings can be meaningful, particularly for long-distance relocations with significant transportation costs.
Employer Relocation Reimbursements: How They’re Taxed
Many employers offer relocation packages to attract talent or facilitate transfers. If your employer reimbursed you for moving expenses or paid a moving company on your behalf, it’s important to understand how that reimbursement is treated for tax purposes.
Under current federal tax law, employer-paid moving expense reimbursements are treated as taxable income for civilian employees. This means the reimbursement amount will appear on your W-2 and is subject to federal income tax, Social Security tax, and Medicare tax just like your regular wages.
Some employers offer a “gross-up” to offset the tax impact, meaning they increase the reimbursement amount so that after taxes, you still receive enough to cover your actual moving costs. If you’re negotiating a relocation package, asking whether the employer provides a gross-up is one of the most valuable questions you can raise. The difference can amount to thousands of dollars.
For active-duty military members, qualified moving expense reimbursements from the government are excluded from taxable income, which is another significant benefit of the military exemption.
How to Claim the Moving Expense Deduction
If you qualify (as an active-duty military member with a PCS order), here are the steps to claim the deduction on your federal return.
Gather your documentation. Collect receipts for all moving-related expenses, including mover invoices, fuel receipts, mileage logs, lodging receipts, and storage fees. Keep copies of your PCS orders, as these establish your eligibility.
Complete IRS Form 3903. This is a straightforward form that calculates your deductible moving expenses. You’ll report the total cost of moving your household goods and personal effects, the total travel and lodging costs, and any reimbursements you received from the government. The net amount after subtracting reimbursements is your deduction.
Report on your Form 1040. The deduction from Form 3903 flows to your Form 1040 as an adjustment to income (sometimes referred to as an “above-the-line” deduction). This reduces your adjusted gross income directly, which can also positively impact other income-based calculations on your return.
Keep records for at least three years. The IRS generally has three years from the date you file to audit a return. Retain all receipts, PCS orders, and documentation for at least that long, though many tax professionals recommend keeping records for up to seven years.
Tax Strategies for Movers Who Don’t Qualify for the Deduction
If you’re a civilian taxpayer who moved in 2026, you won’t have access to the federal deduction, but there are still ways to minimize the financial impact of your relocation.
Negotiate a stronger relocation package. If you haven’t moved yet or are in the process of negotiating a job offer, push for a comprehensive relocation package with a tax gross-up. This is the single most effective way to offset moving costs when a deduction isn’t available.
Check your state tax return. As outlined above, some states still allow moving expense deductions. Even a modest state-level deduction can reduce your overall tax burden meaningfully.
Deduct job search expenses if self-employed. While W-2 employees cannot deduct job search costs, self-employed individuals may be able to deduct certain business-related relocation expenses if the move is directly tied to their trade or business activity. The rules here are nuanced and benefit from professional guidance.
Track home office deductions. If your move established a new home office and you are self-employed or a qualifying remote worker, the home office deduction may offset some of your housing costs at the new location. This doesn’t cover moving expenses directly but can reduce your overall tax burden in the year of the move.
Time your move strategically. Moving near the end or beginning of a calendar year can affect which tax year absorbs certain costs. If your employer offers a lump-sum relocation bonus, the timing of when it hits your payroll can influence your tax bracket for that year. A tax advisor can help you evaluate whether timing adjustments make sense for your situation.
Will the Moving Deduction Come Back for Civilians?
The TCJA provisions that suspended the civilian moving deduction are currently scheduled through the end of 2025. Whether Congress extends, modifies, or allows these provisions to expire is a matter of ongoing legislative debate. If the suspension expires without new legislation, the pre-2018 rules could theoretically return, which would restore the moving expense deduction for civilian taxpayers who meet the distance and time tests.
However, predicting congressional action is inherently uncertain. The most prudent approach is to plan based on current law while staying informed about any legislative changes that could affect your filing.
Frequently Asked Questions
Are moving expenses tax deductible in 2026?
For most taxpayers, no. The federal moving expense deduction has been suspended for civilian workers since 2018 under the Tax Cuts and Jobs Act. Active-duty military members who move due to a permanent change of station are the only group that currently qualifies for the federal deduction.
What moving expenses can military members deduct?
Active-duty military members can deduct the cost of transporting household goods and personal effects, in-transit storage for up to 30 days, vehicle and pet shipping, travel expenses to the new home, and lodging during the trip. Meals, house-hunting costs, temporary housing, and real estate transaction costs are not deductible.
Is employer-paid relocation taxable income?
Yes. Under current federal tax law, employer-paid moving reimbursements for civilian employees are treated as taxable wages. They will appear on your W-2 and are subject to income tax, Social Security, and Medicare taxes. Some employers offer a gross-up to cover the additional tax burden.
Do any states still allow moving expense deductions?
Yes. Several states, including New York, California, and Pennsylvania, have historically maintained their own moving expense deductions independent of federal rules. State tax codes change regularly, so you should verify current eligibility with your state’s tax authority or a qualified tax professional.
What IRS form do I use to claim moving expenses?
Qualifying taxpayers use IRS Form 3903 (Moving Expenses) to calculate and claim the deduction. The result flows to your Form 1040 as an adjustment to gross income. You do not need to itemize deductions to claim it.
How long should I keep moving expense receipts?
Keep all receipts, PCS orders, mileage logs, and related documentation for a minimum of three years from the date you file the return on which you claim the deduction. Many tax professionals recommend retaining records for up to seven years for added protection.
Don’t Leave Money on the Table
Tax rules around moving are more complicated than they used to be, but that doesn’t mean there aren’t opportunities to reduce your burden. Whether you’re active-duty military, relocating for a new job, or navigating a state-level deduction, knowing the rules puts real money back in your pocket.
Not sure where you stand? Connect with a qualified tax professional who can review your specific situation, identify every deduction and credit available to you, and make sure your return is filed accurately. A single consultation can easily pay for itself in savings you didn’t know you were owed.