How To Reduce Moving Expenses: Top Tips

When as a homeowner you plan a house move one thing that is hard to predict is the moving expenses, there are always unpredictable costs. But what if you also thought about ways to reduce those moving expense with a more macro view. Read our top tips on how to reduce these moving costs through your most efficient means.

Increase Tax Savings with a Deductible Moving Expense Strategy

woman surrounded by moving boxes which means moving expenses — When ever you move home there are moving expenses. How do you reduce those costs?

Photo credit – RDNE Stock project

Need to lower your tax bill after heavy moving expenses?

Moving sucks. Nothing makes it better than having to pay full freight without any tax relief on those huge expenses. Fortunately, there are still some moves you can make to lower your tax bill if you play your cards right.

Don’t get too excited, though…

The short story is that the overwhelming majority of taxpayers can no longer deduct moving expenses thanks to the 2018 Tax Cuts and Jobs Act. Unfortunately, this suspension of the moving expense deduction is here to stay for most people.

But wait…

There are still a few loopholes and special circumstances where you can maximize your tax deductions, and some states are much more generous than Uncle Sam.

Let’s jump right in…

How the Tax Cuts and Jobs Act Affected Moving Deductions
Who Still Qualifies for Moving Expense Deductions
Finding Tax Savings at the State Level
Savvy Strategies to Lower Your Moving Costs
Alternative Tax-Saving Strategies

How the Tax Cuts and Jobs Act Affected Moving Deductions

packing boxes half empty — Packing your own boxes is one way you can save money on your house move

Photo credit – Lamia Walker

This is what happened…

After 2017, Congress suspended the moving expense deduction for most taxpayers with the passage of the Tax Cuts and Jobs Act.

Prior to 2018, you could deduct most of your moving expenses if you relocated for work.

Fast forward to today, and Uncle Sam doesn’t care if you itemize deductions or claim the standard deduction. Your moving expenses are no longer deductible for federal income taxes.

The suspension applies to:

Most civilian employees
Self-employed individuals
Business owners
Remote workers

And this means that if you’re looking to know if moving expenses are tax deductible, your answer is “no” at the federal level.

Congress even made the tax law permanent in July 2025 with something called the “One Big Beautiful Bill.” Don’t expect the moving expense deduction to be reenacted anytime soon.

Who Still Qualifies for Moving Expense Deductions

Wondering who qualifies for this tax break? Let’s cut to the chase. The only people who can still deduct moving expenses are:

Active-duty military members. End of list.

You must be moving on orders because of a Permanent Change of Station (PCS) to qualify. Eligible expenses include:

Transportation costs for moving household goods
Travel expenses to your new location (plus one trip for your family)
Storage fees for up to 30 consecutive days
Packing and crating services

The IRS mileage rate for 2025 is 21 cents per mile for moving-related travel.

Military family members also qualify, including:

The spouses and dependents of active-duty members
Family members of deceased military personnel
Dependents of imprisoned or deserting service members

These individuals will also file Form 3903 to take their moving expense deduction.

Finding Tax Savings at the State Level

Did you know this…

The federal government might have shut down tax relief for moving expenses, but some states pushed back hard. Believe it or not, several states still let you deduct moving expenses on your state tax return.

The states that still offer moving deductions include:

California
New York
Massachusetts
Arkansas
Hawaii
New Jersey
Pennsylvania

Most of these states piggyback off of the old federal moving expense deduction rules. This means you’ll likely need to meet both a distance test (new job 50+ miles farther from your old home than your old job) and a time test (work full-time for at least 39 weeks out of 12 months) to qualify.

But here’s the deal…

Each state has its own forms and set of rules, so they can change quickly. Check with your state’s current tax laws or a tax professional before getting too excited.

landscaping worker by his van — Moving expenses range from packing up your own things to preparing your home for the buyers to move in

Photo credit – Lamia Walker

Savvy Strategies to Lower Your Moving Expenses

Can’t deduct your moving costs? No problem. You can still save money on your move through some simple cost-cutting strategies.

Timing is everything…

Moving during the off-season (fall and winter) is almost always cheaper than waiting until the summer months. Almost everyone moves during the summer, and that means higher prices.

Look for ways to trim your moving budget, including:

Comparing moving company quotes
Throwing out stuff before you move (means less stuff to move)
Renting portable storage containers instead of full-service movers
Avoiding weekends and holidays when possible

Donate before you move:

If you want to save money and support a great cause, consider donating items before your move rather than paying to ship them. You can deduct charitable contributions on your federal tax return, so this might save you more than it costs.

Alternative Tax-Saving Strategies

Moving expenses can no longer be deducted on your federal tax return? No sweat.

The good news is there are always alternative tax-saving strategies available.

Job-related moving deductions:

Look for other work-related deductions if you moved for a job. Home office expenses, professional development, and work-related travel may all be deductible.

Employer reimbursement programs:

Lots of employers offer some type of relocation assistance program. If so, negotiate with your employer and see what they’re willing to cover before you accept that new job that requires you to relocate.

Business formation strategies:

You can reduce moving expenses and taxes at the same time if you’re self-employed. Consider incorporating your business in a state with favorable moving expense rules. This is a complex strategy that requires expert help.

Planning Your Moving Tax Strategy

Moving is already an expensive endeavor, with the average cost at $1,400 for local moves and up to $5,000 or more for long-distance moves. We all need to save money where we can.

Keep track of everything anyway:

While it’s safe to assume that the federal government won’t allow you to deduct moving expenses anytime soon, state rules could change. It also doesn’t hurt to make sure you’re not missing out on other deductions.

Tax documentation you should keep:

Moving company contracts and receipts
All transportation costs (gas, flights, hotels)
Temporary storage fees
Packing materials and supplies

Use a professional.

Tax laws are complicated and change all the time. An experienced tax professional will not only help you understand current law, but they can help you find legitimate deductions you might miss on your own.

Making the Most of Limited Options

It’s a bummer. Moving expense deductions are all but dead for most taxpayers.

But here’s the silver lining…

States are your friend. If you live in one of the few states that still allows moving deductions, this could save you several hundred or even thousands of dollars on your state taxes.

Military families have a huge advantage. If you qualify for the moving expense deduction as a military family member, make sure you take every deduction you’re entitled to.

All other taxpayers need to get creative. Focus on reducing your moving costs up front with smart planning and cutting costs wherever possible. Look for alternative tax-saving strategies that still apply.

Taking Action on Your Move

Moving expenses aren’t what they used to be, at least when it comes to maximizing your tax deductions. The federal government took away most moving-related deductions, and there’s no realistic chance that will change.

The best you can do is focus on state-level deductions where they still exist, trim your moving costs through smart planning, and explore alternative tax-saving strategies.

No matter what, keep detailed records of all your moving-related expenses. Tax laws can and do change, so you want to be ready to take advantage of new opportunities should they become available.

The key is to know your options and make an informed decision based on your personal situation. Don’t let the lack of federal deductions dissuade you from looking for every legal way to reduce your tax burden.