Can I deduct moving expenses?
What Changed and When
Before 2018, anyone who moved for a new job that was at least 50 miles farther from their old home could deduct moving expenses — truck rental, movers, travel costs, and mileage. This was a popular above-the-line deduction that didn’t require itemizing.
The Tax Cuts and Jobs Act (TCJA), passed in December 2017, suspended this deduction for tax years 2018 through 2025. The suspension is scheduled to expire after December 31, 2025 — meaning the deduction may return for tax year 2026, but only if Congress doesn’t extend or make permanent the TCJA provisions.
The Military Exception
Active-duty members of the Armed Forces can still deduct moving expenses if the move is due to a military order for a permanent change of station (PCS). This includes moves to a first post of active duty, moves from one permanent post to another, and moves from a last post to home or a nearer point in the U.S. after separation from service.
Deductible expenses for qualifying military moves include: transportation and storage of household goods, travel and lodging costs for the move (but not meals), and mileage at the IRS moving rate (22¢/mile for 2025 — note this is different from the business mileage rate). These are reported on Form 3903 and deducted on Schedule 1.
What About Employer Reimbursements?
If your employer pays for or reimburses your moving costs, those payments are taxable income to you for 2018-2025 (reported on your W-2). Before 2018, employer-paid moves were a tax-free fringe benefit. Under the TCJA, they’re treated as regular wages subject to income tax and payroll taxes.
The exception again is military: employer-paid (government-paid) moves under military PCS orders remain tax-free.
Will It Come Back in 2026?
Maybe. The TCJA’s individual provisions are set to expire after 2025, which would restore the pre-2018 moving expense rules for tax year 2026. However, Congress could extend the TCJA, make it permanent, or modify the rules. As of early 2025, this is one of many TCJA provisions under active debate. We’ll update this page when the law is settled.
If the deduction does return, the old rules would likely apply: you’d need to move at least 50 miles closer to your new workplace (the “distance test”), and you’d need to work full-time for at least 39 weeks of the first 12 months after arriving (the “time test”).
State-Level Moving Deductions
A handful of states still allow moving expense deductions on state returns, even though the federal deduction is suspended. State rules vary — some conform to the pre-2018 federal rules, others have their own criteria. If you moved for work in 2025, check your state’s tax forms to see if a moving deduction is available at the state level.
The Bottom Line
Moving expenses are not deductible for 2025 unless you’re active-duty military moving under PCS orders. The TCJA suspended this deduction for everyone else through the end of 2025. Employer reimbursements for moves are taxable income. The deduction may return in 2026 if the TCJA provisions expire — but that’s not guaranteed. In the meantime, focus on deductions you can claim: your home office, mileage, and business expenses.