Military life often means packing up and relocating every few years – sometimes across the country, sometimes across the globe. For most civilians, moving to a new state means becoming a resident there and filing taxes accordingly.
But for service members and their spouses, it’s not always that straightforward. Residency rules, tax obligations, and legal considerations can look very different from move to move. If you’re preparing for a Permanent Change of Station (PCS), here are some FAQs to help you navigate what comes next.
Who is eligible to deduct expenses for a military move?
Only active-duty members of the U.S. Armed Forces can deduct moving expenses – and only if the move is required by a military order for a PCS. Civilians can’t claim a moving expense deduction, even for work-related moves. This deduction is currently limited to active-duty military members only. To qualify, you must:
- Be on active duty
- Move due to a PCS order, which includes:
- Moving from your home to your first duty station
- Moving from one permanent duty station to another
- Moving from your last duty station to your home (typically within one year of ending active duty)
What expenses can I deduct for a military move?
You can only deduct expenses from your move if they were not fully reimbursed or directly paid for by the government. Unreimbursed moving expenses that can qualify for a tax deduction include:
- The cost of packing, crating, and transporting your household goods
- The cost of connecting or disconnecting utilities
- The cost of shipping your car
- The cost of shipping your pets
- The lodging expenses on your way to your new home (does not include meals)
- The travel expenses on your way to your new home, including airfare or mileage, parking fees, and tolls
- The cost of storing and insuring household goods for up to 30 days after you leave your home
With a full or partial Personally Procured Move (PPM), also referred to as a Do-It-Yourself-Move (DITY) move, you are paid for your move based on weight x distance. This allotment is intended to cover your moving costs. If it does not, you may be able to deduct the above.
What moving expenses can’t be deducted?
Even for active-duty military members who qualify, not all moving costs are deductible. Here are common expenses you cannot deduct:
- Meals during the move
- House-hunting trips before the move
- Temporary living expenses after arriving (beyond lodging during the actual move)
- Costs related to buying or selling a home (closing costs, real estate commissions, home improvements),Lease-breaking fees or security deposits
- Storage costs beyond the allowed time period
- Travel side trips or vacation expenses during the move
Is the money I get for a PPM/DITY move taxable?
In a Personally Procured Move (PPM), also called a DITY move, you handle the move yourself instead of using a government-arranged service. You receive a certain amount of money based on the weight of your belongings and the distance you are required to move. This is meant to cover the expenses of your move (moving boxes and packing materials, gas, storage, etc.).
If the amount you get for moving yourself is more than the total cost of your move, the difference is considered income, and it is taxable. You can only deduct qualified moving expenses that were not reimbursed.
The IRS says that, in general, “if the total reimbursements or allowances you receive from the government because of the move are more than your actual moving expenses, the government must include the excess in your wages on Form W-2.”
Do I qualify for the home sale exclusion for PCS moves?
If you sell your home due to a PCS, you may qualify for the home sale exclusion, which lets you avoid paying tax on up to $250,000 of profit ($500,000 if married filing jointly). Normally, you must have lived in the home for 2 of the last 5 years, but military members with PCS orders can still qualify for a partial exclusion if they don’t meet that requirement, based on how long they lived there.
Active-duty service members can pause the 5-year timeline for up to 10 years while on qualified extended duty, making it easier to meet the eligibility rules later. This benefit is available to active-duty military members and their spouses, helping reduce or eliminate taxes when a PCS move requires selling a home early.
How do I report military moving expenses?
As an active-duty service member, when you file with TaxSlayer, the information you provide will be used to calculate your deduction, and all the data is automatically entered into the correct tax form for your return.If you meet the requirements for the moving expenses deduction, you will complete Form 3903, Moving Expenses and attach Schedule 1, Additional Income and Adjustments to Income. Your deduction amount will be reported as an adjustment to income on Form 1040, U.S. Individual Income Tax Return, or Form 1040-SR, U.S. Tax Return for Seniors.
To make filing easier, have these documents and records on hand:
- PCS orders to verify your move qualifies
- Receipts and invoices for moving-related expenses (transportation, storage, lodging, etc.)
- Travel records, including mileage logs if driving
- Reimbursement or allowance statements from the military (to determine what was covered)
Form W-2, especially if you completed a PPM/DITY move and had taxable reimbursement
Can active duty military or military spouses file taxes in any state?
Not exactly. You must establish a state of legal residency, and that is the state where you will pay income and property tax. Your state of legal residency does not have to be the same state where you or your spouse are currently stationed.
Military spouses can use their service member’s state of legal residency as their own for state and local taxes and voting purposes, without being physically present in that state.
To claim a state of legal residency, you’ll need to prove that you intend to be a resident in the state. Typically, that means you’ll take at least one of the following steps:
- Titling and registering your car in the state
- Registering to vote
- Getting a driver’s license in the state
- Preparing your last will and testament
Active duty military can establish a new state of legal residency by submitting a DD Form 2058, State of Legal Residence Certificate. Buying a home at a new duty station does not automatically make you a resident of that state.
As a spouse, you can choose to maintain your original state of residence (even if it is different from your service member spouse’s state of residence) if you meet these requirements:
- Your service member spouse is moving on orders to a new duty station outside of your home state
- You are moving to the duty station state to be with the service member
What is the military moving mileage rate?
The military moving mileage rate is a set amount per mile that active-duty service members can use to calculate travel costs when driving during a PCS move. For 2026, the rate is about $0.205 per mile. This rate is intended to help cover basic vehicle operating costs like gas and wear and tear, rather than fully reimburse every expense.
The mileage rate is typically updated once per year by the IRS, with new rates usually taking effect on January 1. In some cases, the rate may also be adjusted mid-year if costs (like fuel prices) change significantly.
