Are moving expenses tax deductible?

For most people, no. On your federal return, only active-duty members of the Armed Forces moving under military orders for a permanent change of station can deduct moving costs. Starting with moves in 2026, employees and new hires of the intelligence community are treated the same way. The 2025 federal tax law made this limit permanent, so the old deduction for job-related moves is not coming back.

If you qualify, use IRS Form 3903. You can deduct reasonable costs to move your household goods and personal items, storage, and travel and lodging to your new home. Meals are not deductible. You can't deduct anything the government already paid or reimbursed if that amount was left out of your income.

If you are not in the military and your employer pays for your move, that money is generally taxable income and shows up on your W-2. A few states still allow a moving deduction on the state return. California is one. Check your state tax agency before you file.

Source: Internal Revenue Service, Topic no. 455, Moving expenses for members of the Armed Forces and the Intelligence Community · Checked October 2026