Are moving expenses tax deductible in 2026?
For nearly all Americans, no. The moving expense deduction has been permanently suspended under federal law as of the 2025 One Big Beautiful Bill Act — with two narrow exceptions: active-duty military and certain intelligence community members.
From 2018 through 2025, the Tax Cuts and Jobs Act (TCJA) suspended the federal moving expense deduction for most taxpayers, leaving only active-duty military eligible. The suspension was originally set to expire at the end of 2025 — but Congress changed the rules.
On July 4, 2025, the One Big Beautiful Bill Act (OBBBA, H.R. 1) was signed into law. The law permanently eliminated the moving expense deduction under Internal Revenue Code Section 217 for non-military taxpayers and added a new exception for certain U.S. intelligence community members beginning with tax year 2026.
Moving Tax: Key Takeaways
- 95%+ of Americans cannot deduct moving expenses in 2026 — the TCJA suspension was made permanent by the One Big Beautiful Bill Act in July 2025.
- Two exceptions: active-duty military (existing) and certain U.S. intelligence community members (new under OBBBA, effective tax year 2026).
- Employer-paid moving reimbursements are taxable income for non-military taxpayers (Section 132 exclusion also suspended). Some states may still allow a state-level deduction — check your state tax department.
Who can still deduct moving expenses in 2026?
Two groups: active-duty Armed Forces members on permanent change-of-station orders, and certain intelligence community personnel under the new OBBBA exception.
Active-duty military (existing exception)
Permanent change-of-station orders trigger eligibility. File IRS Form 3903 with your federal return.
Active-duty members of the U.S. Armed Forces can claim moving expense deductions if the move occurred because of a permanent military-ordered reassignment to a new station. Per IRS Publication 521 and IRS Form 3903, covered moves include:
- Moving from home to your first military post for active duty
- Moving from one permanent post to another
- Moving from your last military post to your home or to a nearer point in the United States (within one year of leaving active service)
- Moves between the U.S. and a foreign country, or between two foreign countries (not foreign-to-U.S. inbound moves)
Deductible expenses include packing, crating, storage (up to 30 days), and insurance — plus travel costs (lodging, car expenses, airfare) from the old location to the new one.
U.S. intelligence community (new under OBBBA, 2026+)
Beginning with tax year 2026, certain intelligence community members became eligible — modeled on the military exception structure.
The One Big Beautiful Bill Act added certain members of the U.S. intelligence community to the list of taxpayers eligible to claim the moving expense deduction, beginning with the 2026 tax year. Specific eligibility criteria are defined in the bill text. Affected individuals should consult a tax professional familiar with intelligence-community tax rules to confirm eligibility.
What you can still do if you’re moving in 2026
The federal deduction is gone for most people, but there are still ways to manage moving costs, from employer relocation packages to careful state tax planning.
Negotiate employer-paid relocation packages
Many employers cover moving costs as a benefit, but unlike pre-2018, these reimbursements are now taxable income, so factor that into the deal.
Employer-paid relocation is still common, but the dollars are taxable income to you (the Section 132 exclusion was also suspended). When negotiating an offer, ask for a “gross-up” . The employer covers both the moving cost AND the taxes owed on that reimbursement.
Check your state tax rules
A few states decoupled from the federal TCJA changes and still allow a state-level moving deduction. Verify with your state’s tax department.
Some states did not conform to the TCJA and still allow a state-level moving expense deduction. Check your state’s tax authority (or speak with a state-licensed CPA) before assuming you can’t deduct anything. States to check carefully include California, New York, Massachusetts, New Jersey, and Pennsylvania — rules vary and change year to year.
Save money on the move itself
Without a federal deduction, the highest-ROI move is reducing the bill in the first place: comparison shopping, off-season scheduling, and decluttering before you pack.
Without the federal deduction, the way to save money is reduce the bill before you pay it. See how much should my move cost for benchmarks, why DIY moves cost more for the DIY math, and consider junk removal before packing to reduce the weight you pay to transport.
Plan your move with a trusted Florida and Nevada mover
Whether you’re filing as military, intelligence, or under standard 2026 rules, the right mover saves more money than any tax form — through transparent quotes and bundled services.
Good Greek Moving & Storage serves Florida, Nevada, and serving nationwide with ATA Mover of the Year service. Call (561) 683-1313 or request a free moving quote.
Tax Deductible: Frequently asked questions
Can I deduct moving expenses on my 2026 tax return?
Only if you are active-duty military on permanent change-of-station orders, or you qualify under the new intelligence community exception added by the One Big Beautiful Bill Act for tax year 2026 onward. For all other taxpayers, the federal moving expense deduction is permanently suspended.
Is employer-paid relocation taxable to me?
Yes, for non-military taxpayers. The Section 132 exclusion for employer-paid moving expenses was also suspended by the TCJA and made permanent by the OBBBA. When negotiating an offer, ask the employer for a tax gross-up so they cover both the moving cost and the additional tax you’ll owe on the reimbursement.
Can I still deduct moving expenses at the state level?
Possibly. Some states decoupled from the TCJA and still allow a state-level moving deduction — California, New York, Massachusetts, New Jersey, and Pennsylvania are common ones to check. Rules vary annually. Consult a state-licensed CPA or your state’s tax department for current-year rules.
What expenses are deductible for active-duty military moves?
Per IRS Form 3903: packing and crating of household goods, storage up to 30 days, transit insurance, travel from old to new home (lodging + car expenses or airfare), and up to 18 cents per mile for driving (2025 rate — check IRS for current year). Meals are NOT deductible.