Are Moving Expenses Tax Deductible in 2026? Here’s Everything You Need To Know

Moving to a new home is exciting — but let’s be honest, it can also be expensive. Between renting a truck, buying moving supplies, and hiring professional movers, costs can add up fast. So it’s no surprise that one of the most common questions people ask is: Are moving expenses tax-deductible?

For years, many people relocating for work could claim moving expenses on their federal taxes. But major tax law changes beginning in 2017 largely eliminated that benefit for the average taxpayer. The recent One Big Beautiful Bill Act (OBBBA) of 2025 only reinforced those changes, reshaping the rules on tax deductions for moving.

That doesn’t mean all tax breaks are off the table, though. Certain groups — like active-duty military members and some government employees — may still qualify for federal moving expense deductions. For everyone else, some states offer regional silver linings. In this guide, we’ll explain the reality of tax deductions for moving and where you might still be able to save money during your move.

The Great Tax Reformation

To fully answer the question, “Are moving expenses tax-deductible?” It’s important to understand the two major pieces of legislation behind the suspension of these deductions for most civilians: The Tax Cuts and Jobs Act of 2017 (TCJA) and the OBBBA.

Tax deductions for moving used to be a common perk for people embarking on a new career opportunity. You could often write off costs like truck rentals, moving supplies, and travel expenses. The TCJA completely changed this benefit and hit the pause button on moving expenses deductions for almost everyone except active-duty military. At the time, this legislative act was only supposed to be a temporary break, leaving many taxpayers hopeful that the deduction would come back once again.

The (OBBBA) of 2025 crushed this hope and made the tax deductions for moving suspension permanent for the general public. Under the new law, the federal government officially moved away from broad tax deductions for job relocation.

While many Americans can no longer claim moving expenses on federal taxes, certain military members and government employees may still qualify for a moving expenses tax deduction.

So, Who Qualifies for a Moving Expenses Tax Deduction?

While the door has closed for most taxpayers, active-duty military members and certain U.S. intelligence community employees may still qualify.

Unless you fall into one of these specific federal categories, the IRS now considers your moving expenses a personal cost rather than a business expense — making it more important than ever to understand the rules before counting on a refund that may never arrive.

New Coverings of the Intelligence Community

One notable change introduced by the OBBBA is the expansion of the moving expenses deduction to certain members of the U.S. Intelligence Community. Employees of agencies such as the Central Intelligence Agency (CIA), the National Security Agency (NSA), or the Defense Intelligence Agency (DIA) who relocate because of an official reassignment may now qualify for benefits similar to those that active-duty military personnel receive.

Active-Duty Military Members

Members of the U.S. Armed Forces are the most common group still eligible to claim tax deductions for moving. If you’re currently on active duty and relocating because of a permanent change of station (PCS), you get the green light.

What does a permanent change of station include?

• Moving from your home to your first active-duty assignment.
• Moving from one permanent post to another.
• Moving from your final post back home within one year of ending active duty.

Distance and Time Tests

If you fall into one of these qualifying groups, there are still rules you must meet before claiming a moving expenses tax deduction:

• Distance test: The location of your new job must be at least 50 miles farther from your old home than your previous job location was. For example, if your old commute was 10 miles, your new workplace would need to be at least 60 miles from your previous house.
• Time test: If you’re not moving under a military order, you generally must work full-time for at least 39 weeks during the first year after arriving in your new location.

Some packing, storage, and transportation costs may qualify for a moving expenses tax deduction under specific IRS rules.

Deductible vs. Non-Deductible Moving Expenses

Can you deduct moving expenses entirely? Not quite. The IRS doesn’t hand out a check for every penny spent during the move. It’s crucial to know what costs fall under a moving expenses tax deduction and which ones the IRS considers personal costs. Knowing the difference can help you avoid confusion and potential issues during an audit. 

When Can I Claim the Deduction?

Moving expenses may be deductible if they are necessary and reasonable for the actual transport from Point A to Point B. Here is what’s covered according to IRS Form 3903 (military moves):

• Packing and shipping: Costs of boxes, packing tape, bubble cushioning roll, and hiring professional movers.
• Transportation of goods: Renting a moving truck, renting a container, or paying to ship your personal vehicle.
• Storage: The cost of storing and insuring your household goods can be deducted for up to 30 consecutive days after they leave your old home.
• Travel and lodging: The total transportation cost of getting yourself and your family to your new home, which includes one night’s lodging near your old home if you couldn’t stay there after furniture was packed.

What Can’t I Deduct?

If your employer offers a relocation package, it’s important to understand how that affects your eligibility for deductions:

• Employer-paid moves: You cannot claim a deduction for moving costs if your employer pays the moving company directly.
• Reimbursed costs: If your employer reimburses you for out-of-pocket moving costs, the reimbursement is generally taxable income, and you can’t deduct those same expenses.
• Real estate costs: Expenses related to selling your old home or buying a new one are not deductible.
• Meals: You can’t deduct the cost of any meals when moving from your old home to your new home.

Can You Deduct Moving Expenses If You Aren’t In The Military?

The short answer: Yes, but it depends on where you live. Taxpayers living in states with their own deduction rules might still qualify.

State-Level Rules: Where You Could Get a Break

Are moving expenses tax-deductible at the state level? The answer depends on where you pay your state income taxes. Because many states are detached from federal tax changes — including the OBBBA — you may still qualify for a moving expenses deduction in certain states.

Each state has its own rules for what qualifies as a moving expenses tax deduction. Some states allow taxpayers to itemize qualified moving expenses, while others let you subtract certain relocation-related compensation from your taxable income.

Cross-State Moves

When you embark on a cross-country move from a state that still allows moving deductions, such as New Jersey, to another state that does not, such as Florida, the process can get complicated. In many cases, you’ll need to fill out a part-year resident tax return for the state you’re leaving, which is Form IT-203.

Keep a dedicated tax folder for your move and save every receipt — those records could help if your state allows tax deductions for moving expenses.

The Final Checkpoint: Expense Breakdown & Moving Advice

By now, you should have a clearer understanding of where you stand on the question, “Are moving expenses tax-deductible?” If you’ve confirmed that you qualify through military orders, an intelligence community role, or by living in a qualifying state, it’s time to get organized and stay on track with your costs.

A Breakdown of Typical Moving Expenses

You should know exactly what counts when calculating your potential moving expenses deduction. The typical deductible checklist includes:

• Professional services: Fees paid to movers and packers (as long as these services were not provided or reimbursed by the government).
• DIY moving costs: Expenses related to renting a moving truck, including gas, oil, and toll costs.
• Mileage: The IRS allows a standard moving rate of 21 cents per mile.
• Lodging: The cost of a one night’s stay in a hotel while you are in transit to your new home.

Moving Advice to Help You Budget

Even if your move does not qualify for tax deductions for moving, there are still strategies that can help you save money and reduce stress:

• Keep a tax folder: The moment you decide to move, keep a digital and physical tax folder. Save every receipt, even for things you might not think are important. You’ll be glad to have the proof if you find out that moving expenses are tax-deductible in your state.
• Get moving company quotes: If you’re hiring movers, compare moving quotes ahead of time to avoid unexpected price increases on moving day. This will help you stay within the reasonable spending limits expected by the IRS.
• Negotiate a gross-up: If your employer covers your relocation costs, the IRS now views that payment as taxable income for civilians. You may be able to negotiate a tax gross-up, which is an extra payment to cover the taxes you’ll owe on your relocation benefit.
• 30-day rule: If you have to put your belongings in storage, it’s important to remember that only the first 30 days are usually eligible for a moving expenses deduction. Make sure to plan your move-in date accordingly.

Make your move more flexible with PODS portable moving containers.

Make the Move to Your New Home With PODS

So, can moving expenses be deducted from taxes in 2026? For the right people in the right situations, the answer remains a “yes.” Once you figure that out, the next step is making the move itself as smooth as possible — and that’s where a portable moving container from PODS can help. A container will be delivered right to your driveway, where you can load it on your own schedule. PODS can even connect you with local packing and loading services for help with the heavy lifting. When you’re ready, your container will be picked up and delivered to your new home, or kept in a PODS Storage Center if you need more time.

Visit PODS online for a free local moving quote or call 877-350-7637 for long-distance moving.

_{*This article was written on behalf of PODS Enterprises, LLC (“PODS”). PODS does not warrant the completeness or accuracy of any information contained in this article and disclaims any liability for reliance upon the content herein.}