Job Relocation & Car Shipping: Tax Rules Explained

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Relocating for work can get expensive fast—especially when you factor in the cost of shipping your vehicle across the country. A common question people ask is: can you deduct car shipping costs on your taxes during a job-related move?

The short answer: usually no—but there are important exceptions. Let’s break it down so you know exactly where you stand.


Understanding Moving Expense Deductions

Before 2018, many taxpayers could deduct moving expenses (including vehicle transport) if the move was work-related. However, the Tax Cuts and Jobs Act (TCJA) changed that.

What Changed?

From 2018 through at least 2025:

  • Most taxpayers can no longer deduct moving expenses
  • This includes car shipping, fuel, lodging, and travel costs
  • Even if your move is for a new job or relocation

Who Can Still Deduct Moving Expenses?

There are a couple of exceptions where deductions may still apply:

1. Active-Duty Military Members

If you’re in the military and moving due to orders:

  • You can deduct moving expenses
  • This may include vehicle shipping costs
  • The move must be directly related to a permanent change of station

2. Employer Reimbursement Scenarios

Even if you can’t deduct the cost yourself, your employer might:

  • Cover your vehicle shipping as part of a relocation package
  • Offer tax-assisted reimbursement programs

However:

  • Some reimbursements are considered taxable income
  • Others may be structured to minimize tax impact

It’s worth checking with your HR department or a tax professional.


Can Business Owners Deduct Car Shipping?

If you own a business—like managing a corporate relocation or transporting a vehicle for work purposes—the situation can be different.

Possible Deduction Scenarios:

  • Shipping a vehicle used for business operations
  • Relocating a vehicle tied to business expansion
  • Transporting inventory or company-owned vehicles

In these cases, car shipping costs may qualify as a business expense, depending on how the vehicle is used.

(Always confirm with a CPA to stay compliant.)


Why This Matters for Corporate Relocation

Even if you can’t personally deduct car shipping, it’s still a critical part of a smooth job transition.

Driving long distances during a move can mean:

  • Time off work
  • Added wear and tear
  • Travel risks and fatigue

That’s why many companies now include professional auto transport as part of their relocation benefits.


A Smarter Move: Professional Car Shipping

Using a professional transport service—especially for corporate or long-distance moves—can save time and reduce stress.

Benefits of Professional Shipping:

  • Door-to-door convenience
  • No added mileage on your vehicle
  • Safer, more controlled transport
  • Ideal for tight relocation timelines

For higher-value vehicles or executive relocations, enclosed transport adds an extra layer of protection against weather and road debris.


Final Takeaway

  • Most people cannot deduct car shipping costs for job-related moves under current tax law
  • Military members and certain business uses are exceptions
  • Employer-paid relocation packages may still cover the cost

Even without a tax deduction, car shipping remains one of the smartest ways to simplify a move—especially when time, safety, and vehicle condition matter.


Moving for Work? Let AAS LLC Handle Your Vehicle

At AAS LLC, we specialize in reliable vehicle transport for:

  • Corporate relocations
  • Employee transfers
  • Long-distance job moves

Whether you need standard or enclosed shipping, we help make your transition smooth, efficient, and stress-free.

Request a quote today and move smarter.


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