Who Qualifies for the Moving Expense Deduction
Eligibility depends on your job and the reason for your move. Active-duty military members can deduct unreimbursed moving costs for themselves, their spouse and their dependents when a military order requires a permanent change of station (PCS).
A PCS is a move ordered by the military. It covers a move to your first active-duty post and moves between permanent posts. It also covers a move from your last post to your home or a nearer U.S. point within 1 year of leaving active duty (or as the Joint Travel Regulations allow).
Starting in 2026, intelligence community employees and new appointees can also qualify. They’re treated like Armed Forces members when a change in assignment requires them to relocate.
| Your situation | Can you deduct moving expenses? |
|---|---|
| Active-duty Armed Forces member moving under a PCS order | Yes |
| Intelligence community employee or new appointee relocating for a change in assignment in 2026 or later | Yes |
| Armed Forces member moving without a PCS order | No |
| Civilian moving for a new job or any other reason | No |
What Moving Expenses Count
If you qualify, you can deduct the reasonable cost of moving your belongings and traveling to your new home. Any reimbursement you excluded from income doesn’t count.
Costs You Can Deduct
- Packing, crating and hauling your household goods and personal effects, plus in-transit storage and insurance
- Storage and insurance for any 30 consecutive days after your goods leave your old home and before delivery to your new home
- Travel to your new home, including lodging
- Car costs, using actual expenses such as gas and oil or the standard mileage rate, plus parking and tolls
Costs You Can’t Deduct
- Meals
- Side trips or lavish lodging
- Services the government provided
- Expenses covered by an allowance you excluded from income
The 2026 standard mileage rate for military moves is 20.5 cents per mile for Jan. 1–June 30. It rises to 23.5 cents per mile for July 1–Dec. 31.
Employer Moving Reimbursements Are Taxable for Most Civilians
Because most civilians can’t deduct a move, employer help with moving costs gets taxed too. The One Big Beautiful Bill Act permanently eliminated the exclusion for qualified moving expense reimbursements. Active-duty PCS moves and intelligence community relocations are the only exceptions.
For everyone else, a relocation payment adds to your taxable income. That’s the portion of your income the IRS taxes after deductions.
How to Claim the Moving Expense Deduction
If you qualify, the deduction takes two forms to claim.
- Figure your deductible costs on Form 3903.
- Report the total on Schedule 1 as an adjustment to income, which carries to your Form 1040, 1040-SR or 1040-NR.
An adjustment to income is also called an above-the-line deduction. It lowers your adjusted gross income (AGI), which is your total income minus certain adjustments. You don’t need to itemize to take it.
State Rules for Moving Expenses May Differ
The federal rules above don’t control your state return. Some states still allow a moving expense deduction, so check your state tax agency’s rules if you moved this year.
