Most taxpayers can no longer deduct moving expenses. The One Big Beautiful Bill Act permanently eliminated the employee moving expense deduction for civilians, except for two groups:
- Active‑duty U.S. Armed Forces members moving under military orders
- U.S. intelligence community members relocating due to a required change in assignment (effective for tax years beginning after December 31, 2025)
For nearly all civilians, moving expenses are not deductible, even when job‑related.
Who Can Deduct Moving Expenses
A moving expense deduction is allowed only for:
- Members of the Armed Forces on active duty moving under a permanent change of station
- Members of the intelligence community moving under a required reassignment (starting in 2026)
These taxpayers may deduct reasonable expenses for transporting household goods and traveling to the new duty station.
Deductible Moving Expenses
Household Goods & Personal Effects
Deductible costs include:
- Packing, crating, and transporting items
- Storage and insurance for up to 30 consecutive days after leaving the former home
- Moving items from a location other than the former home, limited to the cost of moving them from the former home
Travel to the New Location
Deductible costs include:
- Transportation
- Lodging (including the day of arrival)
- Mileage using the 2025 standard rate of 21 cents per mile, or actual fuel costs
- Parking fees and tolls
Additional Rules
- No deduction for meals
- Vehicle expenses such as repairs, maintenance, insurance, and depreciation are not deductible
- Each person may deduct only one trip, but family members do not need to travel together or at the same time
Nondeductible Moving Expenses
The following expenses cannot be deducted:
- Meals while traveling
- Home purchase price
- Car tags or driver’s license fees
- Buying or selling a home (closing costs, mortgage fees, points)
- Entering or breaking a lease
- Home improvements to help sell a home
- Loss on sale of a home
- Loss of club memberships
- Mortgage penalties
- Pre‑move house‑hunting trips
- Real estate taxes
- Carpet or drapery refitting
- Return trips to the former residence
- Security deposits (including those forfeited)
- Storage charges except in‑transit or foreign‑move storage