Are Moving Expenses Tax-Deductible in 2025?
In most cases, it's just for people in the military, but some people may get a break on their state tax returns.
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Moving expenses aren’t tax-deductible on your federal tax return unless you’re in the military or are a member of the intelligence community and are moving due to a permanent change of station . However, depending on where you live, you might be able to deduct moving expenses on your state income taxes even if you're not in the military or a member of the intelligence community.
What qualifies as a moving expense?
These things typically count as moving expenses:
- Moving company bills.
- Trailer rental fees.
- Packing and unpacking services.
- Crating fees.
- Moving insurance.
- Storing and insuring your stuff for 30 consecutive days between when you move out of your old place and move into your new place.
- Travel expenses (hotel, but not meals) from your old home to your new home (including car expenses and airfare).
- Your out-of-pocket expenses for gas and oil, if you keep an accurate record of each expense. The standard IRS mileage reimbursement rate to drive from the old place to the new place.
- Parking fees and tolls.
These things typically don’t count as moving expenses:
- Expenses for employees, such as a maid, nanny or nurse.
- The price of your new home.
- Fees for new license plates or car registrations.
- Fees for a new driver's license.
- Closing costs, mortgage fees and points associated with buying or selling a house.
- Fees to sign or break a lease.
- Home improvements you make to help sell your home.
- Losses associated with disposing of club memberships.
- Mortgage penalties.
- Repairs, maintenance, insurance or depreciation for your car.
- Real estate taxes.
- Changing carpet or window treatments.
- Return trips to your former home.
- Security deposits.
- Storage charges except those incurred in transit and for foreign moves .
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Who qualifies for the IRS moving expense deduction?
Only people in the military who are moving due to permanent change of station can deduct moving expenses on their federal tax returns. Members of U.S. intelligence community (i.e., the CIA, NSA and similar) can take the deduction after 2025 .
However, a few states allow everyone to deduct moving expenses on their state tax returns. Some states only allow active duty military members to take the deduction on their state tax returns. A few don’t let anyone take a state-level deduction for moving expenses.
A permanent change of station includes:
- A move from the soldier’s home to the soldier’s first post of active duty.
- A move from one permanent post of duty to another permanent post of duty.
- A move from the soldier’s last post of duty to the soldier’s home or to a nearer point in the United States. That move has to happen within a year of leaving the military or within the period allowed under the Joint Travel Regulations.
How to deduct moving expenses
If you qualify for the moving expense deduction, you can file IRS Form 3903, which you then use to reduce your taxable income on IRS Form 1040 at tax time. There are special rules for storage fees if you were out of the country during the tax year .
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- 1. IRS.gov. IRS Form 3903, Moving Expenses. Accessed Jul 4, 2025.
- 2. IRS.gov. Instructions for Form 3903. Accessed Jul 4, 2025.
- 3. Congress.gov. H.R. 1 Section 70113. Accessed Jul 4, 2025.
- 4. IRS.gov. Topic no. 455, Moving expenses for members of the Armed Forces. Accessed Jul 4, 2025.
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