Moving for Work or School? You May Be Eligible to Claim Moving Expenses

Did you know that in Canada, if you’re moving for work or school, you may be able to deduct certain moving expenses on your taxes? For anyone relocating within Toronto or the Greater Toronto Area (GTA), these deductions can add up to real savings—if you meet the Canada Revenue Agency’s (CRA) moving expenses eligibility rules.

At Boxed Inn, your trusted moving company in Toronto, we want to make sure your move goes smoothly from start to finish—not just on moving day, but when it’s time to file your taxes too. Here’s what you need to know.

Who Qualifies for Moving Expense Deductions?

In Ontario, you may be eligible to claim moving expenses if:

• You moved to start a new job, run a business, or attend full-time post-secondary studies.
• Your new home is at least 40 kilometres closer (by the shortest public route) to your new job or school.
• You earned income at the new location in the same year you moved.

This means if you’re relocating from Toronto to Ottawa for a new job, or from Mississauga to Kingston for school, you may be entitled to deduct some of the costs.

Which Moving Expenses Are Eligible?

The CRA allows Ontario movers to deduct a variety of costs, including:

• Transportation and storage: hiring a moving company, truck rental, packing, and insurance.
• Travel costs: mileage, gas, meals, and accommodations while moving to your new home.
• Temporary living expenses: up to 15 days of meals and housing in Toronto or elsewhere in Ontario.
• Lease cancellation fees: if you had to break a rental lease.
• Home sale costs: realtor commissions, legal fees, and mortgage penalties for selling your Ontario home.
• Incidental costs: utility hookups/disconnections, address changes, and replacing Ontario driver’s licences or health cards.

Moving Expense Rules for Ontario Students

If you’re a full-time post-secondary student in Ontario, you may also qualify to deduct moving expenses when relocating to attend school. Here’s what students need to know:

• You must be enrolled full-time at a recognized post-secondary institution.
• Your new residence must be at least 40 km closer to the school than your previous home.
• Moving expenses can only be claimed against scholarship, bursary, research grant, or employment income earned at the new location.
• Common eligible student expenses include moving truck rentals, movers, storage, meals, and travel during the move.

Example: If you’re moving from Brampton to Kingston to attend Queen’s University, or from Oakville to Ottawa for Carleton University, you may be able to deduct your moving costs if you earn income or receive taxable scholarship funding.

Moving Expense Rules for Work and Business Moves in Ontario

If you’re relocating in Ontario for employment or to run your own business, the CRA also provides specific guidelines:

• Your new home must be at least 40 km closer to your new job or business location.
• Eligible expenses include professional movers, storage, travel costs, temporary accommodations, and incidental expenses related to the move.
• If your employer reimburses you, only the out-of-pocket expenses you weren’t compensated for can be claimed.
• If you’re self-employed, the same eligibility rules apply—you must show that the move was required for your business and meets the distance test.
• You can only claim expenses against employment or self-employment income earned at the new location.

Example: If you move from Toronto to Ottawa for a new position in finance, or relocate your small business from Mississauga to London, you may be able to deduct moving costs that meet CRA requirements.

Don’t Overclaim: Moving Expense Claims  May Trigger a CRA Audit

Even though these deductions are available, the CRA carefully reviews Ontario claims. Common reasons people get audited include:

• Claiming ineligible expenses (like new furniture or home renovations).
• Failing to meet the 40 km distance rule.
• Double-claiming expenses already reimbursed by an employer.
• Submitting vague or missing receipts.

Claim With Confidence: Moving Expense Tips

If you’re moving in Toronto or across Ontario, here’s how to stay audit-proof:

1. Hire a professional moving company in Toronto like Boxed Inn for transparent, itemized receipts.
2. Keep detailed records of mileage, gas, and meal receipts during your move.
3. Understand what qualifies and avoid mixing in personal expenses.
4. Stay organized and keep all documentation together for tax filing.

Why Choose Boxed Inn for Your Move

Relocating isn’t just about boxes and trucks—it could also mean tax savings if you’re eligible. By planning ahead, understanding CRA rules, and hiring a professional mover, you can reduce stress, maximize deductions, and avoid costly audits.

At Boxed Inn, we’ve helped countless GTA residents move locally within Toronto and across the province. By providing clear invoices and reliable service, we don’t just make your move stress-free—we help ensure you have the documentation you need if you decide to claim moving expenses.

Whether you’re moving to a new job in Ottawa, transferring from the GTA to Kingston, or starting school in another Ontario city, Boxed Inn is the moving company GTA residents trust.

Disclaimer: This article is for general informational purposes only and highlights Ontario-specific rules. It is not financial or tax advice. Every situation is unique, and CRA policies may change. Please consult with a licensed accountant or tax professional in Ontario before making moving expense claims.