Table of contents
Quick answer
For most people, no. The federal moving expense deduction is available only to active-duty members of the Armed Forces moving because of a military order, and, from 2026, to employees and new appointees of the intelligence community moving under orders. Even then, the IRS lists household goods, personal effects, storage and travel as deductible; it does not name shipping a car, so ask a tax professional whether yours counts. Some states, including California, have their own rules. This guide explains the rules; it is not tax advice.
The federal rule: who can deduct moving costs
The federal deduction for moving expenses is limited to two groups. If you are not in one of them, a move for a new job, retirement or family reasons is not deductible on your federal return, and neither is the cost of shipping a car as part of it.
- Active-duty members of the Armed Forces moving because of a military order, which includes a move to a first post of duty, between permanent posts, and home after leaving active duty.
- Employees or new appointees of the intelligence community moving in 2026 or later.
What the IRS says, and doesn't say, about cars
For a qualifying move, the IRS lists the costs of moving household goods and personal effects, storage and travel to the new home. It does not mention shipping a car by name. Whether a shipped vehicle counts under household goods and personal effects is exactly the kind of question to put to a tax professional before you claim it.
State taxes can be different
States set their own income tax rules, and not all of them followed the federal change. California is the clearest example: it has its own moving expense form, with its own tests for people who are not in the military.
If your employer is paying
Many employers pay for car shipping as part of a relocation package, either directly or by reimbursing you. How that payment is treated for tax purposes is a question for your employer's payroll or relocation team, and the answer may appear on your pay records. Ask before the move, so there are no surprises at tax time.
Keep the paperwork either way
- The shipping invoice and proof of payment.
- The bill of lading, which shows the pickup and delivery dates.
- Military orders or appointment letters, if you are in a qualifying group.
- Any reimbursement statement from the government or your employer.
Even if you can't deduct the cost, the invoice and bill of lading are worth keeping. They are also what you need for a damage claim, and some employers ask for them to process a reimbursement.
Frequently asked questions
Can I deduct car shipping for a job move?
Not on your federal return, unless you are an active-duty service member moving on military orders or, from 2026, an intelligence-community employee moving under orders. Your state may have different rules.
Can military members deduct shipping a car on a PCS move?
Active-duty members moving on military orders can deduct qualifying moving expenses on Form 3903. The IRS lists household goods, personal effects, storage and travel; it doesn't name car shipping, so confirm with a tax professional. Anything the government paid for or reimbursed isn't deductible.
Military car shippingIs driving my car to my new home deductible instead?
For a qualifying move, yes: the Form 3903 instructions allow actual gas and oil costs or 21 cents a mile, plus parking and tolls.
Does California allow a moving expense deduction?
California has its own form, FTB 3913, for claiming moving expenses on a California return, including for people outside the military who meet its distance and time tests. Check the instructions for the tax year you are filing.
Is this tax advice?
No. It explains what the IRS and one state publish. For your own situation, ask a tax professional.
Sources
- IRS Topic 455, Moving expenses for members of the Armed Forces and the Intelligence Community
- IRS Instructions for Form 3903
- California Franchise Tax Board, Form FTB 3913 instructions
Written and reviewed by the Haulwide editorial team. Editorial policy
