FAQ: Are Moving Costs Tax Deductible in California?

If you’re planning a move in California, you may be asking yourself: can I deduct moving costs on my taxes? It’s a common question, especially for families and businesses relocating in and around Chico, Roseville, Lincoln, North Sacramento, and Yuba City. Here’s a plain-English breakdown of the rules so you can plan your budget with confidence.

The Short Answer

Since the 2017 Tax Cuts and Jobs Act, most people can no longer deduct moving expenses on their federal tax return. The major exception is active-duty military members who are relocating due to a military order — that deduction remains in place for them under current IRS guidance. See the IRS Topic 455 guidance and Form 3903 instructions for the official eligibility rules; this article is general information, not tax advice.

What About California State Taxes?

California generally follows federal treatment for personal moving expenses, but state filings, business relocations, employer reimbursements, and individual circumstances can change the result. Unless you fall under an applicable exception, plan on personal moving expenses not being deductible and confirm the current California treatment with a qualified tax professional. Older advice you find online may no longer be accurate.

Exceptions Worth Knowing About

There are a few situations where the rules work differently:

• Military moves. Active-duty service members relocating due to a permanent change of station may still qualify for a deduction. This is the clearest and most consistently available exception.
• Business moves. If you’re relocating a business within California, some of the associated costs may qualify as ordinary business expenses rather than personal moving expenses — this is a different category with its own rules.
• Employer reimbursements. If your employer covers some or all of your moving costs, those payments may be taxable income to you unless they’re specifically structured to be excluded. This is worth confirming with your employer’s HR or payroll team before you assume the reimbursement is a wash.

What This Means for California Residents

If you’re moving anywhere in Northern California — Chico, Roseville, Lincoln, North Sacramento, or Yuba City included — the safest approach is to plan your budget assuming moving expenses won’t be deductible. That doesn’t mean there’s nothing you can do to control costs. Choosing a mover with transparent, upfront quoting and no hidden fees is one of the more reliable ways to keep your out-of-pocket costs predictable, since you’re not depending on a tax break that, for most people, simply doesn’t apply anymore.

Should I Keep My Receipts Anyway?

Yes. Even if you don’t personally qualify for a deduction, receipts matter for a few reasons: your employer may offer reimbursement and require documentation, a business move may have deductible components that do need to be substantiated, and it’s simply good practice to have records of a major expense like a move. Keep a folder — physical or digital — with your moving quote, invoice, and any related receipts (packing supplies, storage, mileage if applicable) until your taxes for that year are filed and settled.

Talk to a Tax Professional

Tax law changes, and individual situations vary — active-duty status, business structure, and employer reimbursement policies all affect the answer. This article is general information, not tax advice specific to your situation. If you have any doubt about how a move affects your taxes, a conversation with a qualified tax professional is worth the time before you file.

Planning Your Move

Whether or not your moving costs are deductible, a well-planned move with clear, upfront pricing is one of the best ways to avoid unpleasant financial surprises. If you’re getting ready for a move in Chico, Roseville, Lincoln, North Sacramento, or Yuba City, Murdock’s Moving & Storage is happy to walk through a free, no-obligation quote and help you plan a move that fits your budget.