Quick answer: For most people, no. Since the 2017 Tax Cuts and Jobs Act (TCJA), moving expenses are not deductible on federal taxes for the general public through 2025 and into the 2026 tax year. The one major exception is active-duty members of the U.S. Armed Forces moving under permanent change of station (PCS) orders, who can still deduct qualified moving costs. Additionally, several states still allow a moving expense deduction on state returns — including California, New York, Massachusetts, New Jersey, Pennsylvania, and Arizona.
The Short History: What Changed in 2017
Before 2018, many Americans who moved for work could deduct qualified moving expenses on their federal tax return — even without itemizing. The Tax Cuts and Jobs Act of 2017 suspended that deduction (and the related exclusion for employer-paid moving reimbursements) for tax years 2018 through 2025.
Because the TCJA suspension runs through the end of 2025, it directly affects returns filed in early 2026 for the 2025 tax year, and the rules remain in effect into 2026 unless Congress acts to change or extend the law. In short: for the average household relocating in 2026, moving costs are a personal expense with no federal write-off.
Who Can (and Can’t) Deduct Moving Expenses
| Category | Federal Deduction? | Notes |
|---|---|---|
| General public (most taxpayers) | ❌ No | Suspended by TCJA through 2025 and into 2026 |
| Active-duty U.S. military (PCS orders) | ✅ Yes | Must be a permanent change of station under military orders |
| Retirees & employees moving for a new job | ❌ No | No longer qualify at the federal level |
| Residents of certain states | ⚠️ Sometimes | State deduction may apply even when federal does not (CA, NY, MA, NJ, PA, AZ) |
The Military Exception Explained
Active-duty service members are the clearest winners under current law. If you are on active duty and move because of a military order for a permanent change of station, you can deduct your unreimbursed qualified moving expenses using IRS Form 3903.
Qualified costs typically include:
- Packing, crating, and transporting household goods and personal effects
- Storage and insurance for goods in transit
- Travel and lodging (but not meals) for you and your household to the new home
You do not have to meet the old distance and time tests that applied to civilians before 2018. Reimbursements the military provides that are excluded from your income cannot also be deducted.
Expert tip: Even if you can’t claim a federal deduction, keep every moving receipt and your final invoice. If you’re a military family, a state resident who qualifies, or self-employed with a home office, documentation is what turns “maybe” into a legitimate write-off. A shoebox of receipts is cheaper than an audit headache.
States That Still Allow a Moving Expense Deduction
Some states did not conform to the federal TCJA changes and continue to permit a moving expense deduction on the state return. These commonly include:
- California
- New York
- Massachusetts
- New Jersey
- Pennsylvania
- Arizona
How State Deductions Work
Because each state sets its own rules, eligibility, distance requirements, and qualifying expenses vary. Some states essentially preserve the pre-2018 federal rules (including distance and time tests); others have their own criteria. Even if your federal return shows no moving deduction, your state return might. Always check your specific state’s current-year instructions or ask a local tax professional, since state conformity rules can change year to year.
What About Employer Reimbursements?
Under the TCJA, when an employer pays or reimburses your moving costs, that money is generally treated as taxable income for non-military employees. So a “relocation package” in 2026 may increase your tax bill rather than provide a deduction. Some employers “gross up” relocation pay to offset the added tax — ask your HR department how your package is structured before you move.
Ways to Save on a Move Without a Deduction
If you can’t deduct your move, the next best strategy is to lower the actual cost:
- Compare multiple quotes from licensed, insured movers rather than accepting the first estimate.
- Move in the off-season (fall and winter, mid-month, mid-week) when rates are often lower.
- Declutter first — you pay to move weight and volume, so donate or sell what you won’t need.
- Ask about binding estimates so your final price doesn’t balloon on moving day.
Getting a few side-by-side quotes is the simplest way to keep hundreds — sometimes thousands — of dollars in your pocket.
Frequently Asked Questions
Q: Can I deduct moving expenses on my 2025 or 2026 federal tax return?
A: For most taxpayers, no. The TCJA suspension applies through the 2025 tax year and remains in effect into 2026 unless Congress changes the law. Active-duty military moving on PCS orders are the main exception.
Q: I moved for a new job in 2026. Is any of it deductible?
A: Not on your federal return. Job-related moves for civilians lost their federal deduction under the TCJA. Check whether your state (such as CA, NY, MA, NJ, PA, or AZ) offers a deduction.
Q: Are military moving expenses still deductible?
A: Yes. Active-duty service members moving under permanent change of station orders can deduct unreimbursed qualified expenses using IRS Form 3903.
Q: My employer is paying for my relocation. Is that tax-free?
A: Generally no for non-military employees under current law — employer-paid or reimbursed moving costs are usually treated as taxable income. Confirm the details with your HR or payroll department.
Get Moving Quotes That Fit Your Budget
Since a tax deduction likely isn’t on the table for your household, the smartest move is to reduce your out-of-pocket cost. Get free, no-obligation quotes from vetted, licensed movers at movingexperts.com/ and compare prices in minutes so you keep more money where it belongs — with you.
This article is general information only and is not tax, legal, or financial advice. Tax laws change and individual situations vary. Please consult a qualified tax professional or CPA about your specific circumstances.
Related guides: The Ultimate Moving Checklist & Timeline · How to Pack Dishes for Moving · How Much Does It Cost to Move?
