Are Moving Expenses Still Tax-Deductible in New Jersey?

Moving to a new home in the Garden State can be an exciting chapter, but the costs associated with packing up your life and relocating can quickly add up. For years, many taxpayers relied on the moving expense deduction to help offset some of these financial burdens. However, the tax landscape has shifted significantly since the Tax Cuts and Jobs Act (TCJA) of 2017. So, the burning question for New Jersey residents is: Are moving expenses still tax-deductible?

Let's break down the current situation, both at the federal and state levels, specifically for those calling New Jersey home.

The Federal Landscape: A Major Shift

For the vast majority of taxpayers in the United States, including those moving to or within New Jersey, the answer to the federal deductibility of moving expenses is no. The TCJA, which went into effect in 2018, eliminated the moving expense deduction for most individuals. This change is currently slated to remain in effect through the 2025 tax year.

The Sole Exception: Active-Duty Military

There is one significant exception to this rule: active-duty members of the U.S. Armed Forces who are moving due to a permanent change of station (PCS) under military orders. If you are in this category, you may still be able to deduct your unreimbursed moving expenses on your federal tax return using Form 3903, Moving Expenses.

What About New Jersey State Taxes?

Now, let's turn our attention to the New Jersey state income tax. As of early 2025, the situation in New Jersey mirrors the federal stance for most taxpayers. According to the New Jersey Department of the Treasury, Division of Taxation, you cannot deduct moving expenses or employee business expenses from wages on your New Jersey income tax return.

Important Note: A Proposed Bill

It's worth noting that in February 2024, Assembly Bill A3529 was introduced in the New Jersey State Legislature. This bill proposed a gross income tax deduction for certain moving expenses for taxpayers moving to New Jersey to commence work in the state.

As of April 2025, it's crucial to understand the current status of this bill. You can track its progress on the New Jersey Legislature website. Unless this bill has been passed and enacted into law, the general rule of non-deductibility for moving expenses on your New Jersey state income tax return still applies.

Your Local Guide to a Smooth New Jersey Relocation

While the tax deductibility of moving expenses may not be in your favor right now, understanding the financial aspects of your move is still crucial. As someone who has called New Jersey home my entire life, I have an in-depth understanding of the local market and can help you navigate all aspects of your relocation, from finding the perfect neighborhood to understanding the true costs involved.