Can I deduct moving costs when I relocate within Ontario for a new job?

Yes. The federal moving expense deduction under the Income Tax Act allows you to deduct eligible moving costs if you moved at least 40 kilometres closer (by the shortest public route) to your new workplace, school, or business location. Ontario residents moving within the province, or from another province to Ontario, can claim this deduction on their T1 return.

Eligible expenses include transportation costs to move household goods, travel costs to move the family (car mileage at CRA's prescribed rate, or actual receipts), temporary living expenses at the old or new location (limited), the cost of selling your old home (real estate commissions, legal fees), and certain carrying costs on a vacant old home if you are trying to sell it.

The deduction is limited to the income earned at the new location in the year — you cannot use it to create a loss. Unused moving expenses can be carried forward and deducted against income from the new work location in the following year.

Keep all receipts: movers' invoices, gas receipts or mileage log, legal bills, and real estate invoices. CRA commonly reviews moving expense claims.