Tax Planning
Maximizing Savings through the Labour Mobility Deduction Change
Recent changes to the Labour Mobility Deduction offer a surprise opportunity for remote workers and trade professionals—find out how to claim up to $10,000 and what qualifies.
By NomadicTax Research Team • 5-8 min read • August 6, 2026
## What is the Labour Mobility Deduction enhancement?
In June 2026, the Canadian government passed **Bill C-30**, which received Royal Assent on **June 19, 2026**. Among its many measures, it **expanded the Labour Mobility Deduction**: reducing the minimum distance for eligible work travel from **150 km to 120 km** and increasing the maximum annual deduction from **$4,000 to $10,000**. ([canada.ca](https://www.canada.ca/en/department-finance/news/2026/06/legislation-passes-to-implement-measures-from-the-spring-economic-update-2026.html?utm_source=openai))
## Who benefits—and how much
This change primarily benefits those who travel significant distances for employment, such as trade workers, consultants with regional duties, mobile professionals, and certain remote workers with assignments away from home.
| Employment Type | Previous Deduction Limit | New Deduction Limit |
|------------------|-----------------------------|------------------------|
| Commuter tradesperson | Max $4,000, travel over 150 km | Up to $10,000, travel over 120 km |
| Remote assignment requiring travel | Same as above | As above |
**Example:**
- You live in Ottawa but work temporarily in Montreal, 130 km away. Under the new rules, you can claim up to $10,000 in qualifying travel and lodging expenses. Previously, you'd need to travel over 150 km which disqualified you.
## Eligible expenses and qualifying criteria
To claim the expanded deduction, you must meet:
- **Definition of mobility**: Travel from home to work or work to home when work location is 120 km or more from your main residence.
- **Qualifying expenses**: reasonable cost of travel, lodging, meals if overnight travel involved, and other related costs.
Keep solid documentation:
- Receipts (fuel, flights, meals)
- Maps or distance records confirming 120 km
- Employer confirmation if travel required by them
## Action steps
1. Review past travel expenses—if you hit 120 km but never claimed, consider amending your return.
2. Track expenses properly—collect receipts and distances.
3. Use tax software or CRA forms supporting Labour Mobility Deduction.
4. For self-employed or incorporated professionals: ensure documentation of business necessity of travel.
## Strategic considerations
- Pair this with home-office or remote work tax planning—if you already spend a lot of time traveling, this boosts your deductible pool.
- Employers may adjust policies: perhaps covering lodging if travel frequent—but this affects personal deduction eligibility.
- Keep eyes on the tax return deadlines; the deduction applies to expenses in the years 2026–2028 under Bill C-30. ([canada.ca](https://www.canada.ca/en/department-finance/news/2026/06/legislation-passes-to-implement-measures-from-the-spring-economic-update-2026.html?utm_source=openai))
**In short:** If you travel 120 km or more for work, you can now deduct significantly more on your taxes. Organize your receipts, confirm your distance, and leverage this change before it expires.