Deduct Moving Expenses: Calculate Your Tax Savings

A job‑related move can noticeably reduce your tax burden – this guide shows exactly which amounts you can deduct and how to calculate the resulting savings.

When a move is tax‑deductible

A move is considered job‑related only if it is triggered by a new workplace, a company‑mandated transfer, or another professional necessity . Only in this case may the incurred expenses be claimed as income‑related expenses (Werbungskosten). A pure private move lacks this basis; the costs can at most be treated as household‑related services .

Moving‑cost allowance – amount and rules

The sources do not specify concrete amounts for the moving-cost allowance. For a job‑related relocation, a moving‑cost allowance can be added on top of the actually documented expenses. It covers typical items that are hard to itemise individually (e.g., small packing supplies). The allowance may only be claimed together with proven costs – it does not replace them .

Documented expenses – which costs are recognized

To obtain recognition from the tax office, every expense must be backed by an invoice, receipt, or contract. Common, tax‑deductible items include:

Transport: Rental of a moving van, freight services, or a professional moving company .
Packing material: Boxes, cushioning, tape and other packing aids .
Moving helpers: Fees for professional movers or a reasonable compensation for self‑organized helpers .
Renovation of the new residence, e.g., painting or repair work .
Rental deposit: Landlords may legally demand up to three months’ cold rent as security (§ 551 BGB) .
Re‑registrations: Fees for changing address with telephone, internet, vehicle registration, etc.; usually minimal or free .

For self‑organized helpers you can only claim their effort if you pay a moving-cost allowance.

Step‑by‑step calculation of your tax saving

Collect receipts – gather all invoices, receipts and contracts for the items listed above.
Sum documented costs – add the individual amounts.
Add the allowance – supplement the sum with a moving‑cost allowance, if applicable.
Determine total deductible amount – documented costs + allowance.
Calculate tax saving – multiply the total deductible amount by your marginal tax rate. Example: With a 30 % tax bracket, a deductible amount of € 2,000 reduces the tax liability by € 600.

Following this procedure gives you a concrete picture of the potential saving without vague language.

Practical tip: Use the online moving‑cost calculator

Before you start gathering paperwork, you can obtain a realistic preview of your deductible costs with the ImmoScout24 moving‑cost calculator. By entering living area, distance, desired services and other parameters, the tool estimates the overall expense, including the typical allowance .

Note: The calculator is a free online tool; it does not replace the legal requirement to retain all receipts and present them upon audit.

Tax software as a helper

Most mainstream tax‑software programs that support the Anlage N allow you to enter the Werbungskosten and instantly show the impact on your taxable income. Ensure that the software you choose incorporates a moving-cost allowance and offers a plausibility check for your documentation.

By clearly separating the professional trigger, maintaining thorough documentation, and leveraging the online calculator, you can be confident that no eligible amount slips through the cracks.

Try it yourself: Moving Costs Calculator