- Who: Employees with a journeyman or recognized provincial trade certificate in construction.
- What: Deduction for temporary lodging costs at a job site at least 150 km from home.
- How much: Up to $350/week, maximum $4,000/year (2025).
- Where to claim: Line 21400 (Other employment expenses) on your T1.
- Key rule: Work must be temporary; you must maintain your principal residence.
Background: Why This Deduction Exists
Canada's construction industry frequently sends certified tradespeople to work in cities or regions where labour is scarce. A union carpenter in Windsor might spend months working on a data centre being built in Mississauga. A certified ironworker from Hamilton might work a pipeline project in northern Ontario.
Historically, these workers got no tax relief for the cost of renting an apartment near the job site while still paying their mortgage or rent at home. The 2022 federal budget created the Labour Mobility Deduction to address this. The maximum was raised to $4,000 for 2024 and beyond.
Eligibility: Four Requirements
1. You must hold a qualified certificate
You must hold one of the following:
- A journeyman certificate in a trade (from a provincial or territorial apprenticeship authority), OR
- A provincially or territorially recognized trade certificate in an eligible construction trade
In Ontario, this includes certificates issued by Skilled Trades Ontario (formerly Ontario College of Trades) in any Red Seal or Ontario-only trade classification that involves construction activities.
The Labour Mobility Deduction covers both certified journeypersons and indentured apprentices in eligible construction trades. An apprentice registered in a trade program who travels 150+ km to a temporary construction job site can claim the deduction. Construction labourers without a recognized trade certificate or apprenticeship registration do not qualify, but may claim regular employment expenses with a T2200.
2. The work location must be at least 150 km from home
Measure the distance between your principal place of residence (the home where you ordinarily live) and the temporary work location. CRA measures by the shortest normal route, not as-the-crow-flies. The 150 km must be met at the time you travel for work.
3. The work must be temporary
The work cannot be permanent. You must maintain your principal residence during the period of temporary work. CRA looks at whether you:
- Continue paying rent or mortgage on your home
- Return home on weekends or between work terms
- Have not permanently relocated to the work city
4. You must be an employee
The Labour Mobility Deduction applies to employees who receive a T4. Self-employed contractors can deduct temporary accommodation costs through T2125, which offers broader deductions anyway.
What Can You Deduct?
Eligible costs: temporary lodging
The deduction covers the cost of temporary lodging at or near the temporary job site:
- Hotel or motel rooms
- Furnished short-term apartment rentals
- Rooms in boarding houses near the job site
- Airbnb or similar short-term accommodation (with proper receipts)
The $350/week cap
The deduction is limited to $350 per week actually spent on temporary lodging. If you pay $500/week for a furnished apartment, only $350 qualifies. If you pay $250/week, you can claim $250.
The $4,000 annual cap
Regardless of actual costs, the maximum deduction in a single tax year is $4,000. This represents roughly 11 full weeks of lodging at the maximum weekly rate.
| Scenario | Weekly Cost | Weeks Away | Actual Cost | Deduction Claimed |
|---|---|---|---|---|
| Short project | $300 | 8 | $2,400 | $2,400 |
| Medium project | $300 | 20 | $6,000 | $4,000 (capped) |
| High-cost city | $500 | 6 | $3,000 | $2,100 (6 × $350) |
| Full year away | $400 | 52 | $20,800 | $4,000 (capped) |
What Is NOT Covered
- Personal costs: Lodging costs at your principal home, utilities, or mortgage payments are never deductible.
- Non-construction work: The deduction applies only to work at a construction job site, not to other types of temporary employment.
- Lodging costs at home: Your mortgage, rent, or utilities at your principal residence are never deductible employment expenses.
- Tools and safety gear: Claim these separately under the Tradesperson's Tools Deduction (line 22900) or as T777 employment expenses.
How to Claim: Line 21400
The Labour Mobility Deduction is entered on Line 21400 of your T1 return (Other Employment Expenses). You do not complete a separate CRA form for this deduction, but you should keep supporting documentation:
- A copy of your journeyman or trade certificate
- Receipts for all temporary lodging (hotel invoices, lease agreements, Airbnb confirmations)
- A calculation showing: number of weeks × weekly lodging cost (capped at $350/week), total capped at $4,000
- Evidence of distance (Google Maps printout or similar showing 150+ km)
- Evidence that work was temporary (job contract, union dispatch records, T4 showing duration)
The Labour Mobility Deduction is relatively new and CRA has been reviewing claims carefully. Do not estimate or round your lodging costs. Keep every hotel receipt, every Airbnb confirmation email, every lease or rental agreement. A well-documented claim is the best protection against a reassessment.
Labour Mobility vs. Moving Expenses: Which Is Better?
Some workers have the option of claiming either the Labour Mobility Deduction or the Moving Expense Deduction (line 21900) for the same relocation. You cannot double-claim the same costs. Here's how to think about which to choose:
| Factor | Labour Mobility Deduction | Moving Expense Deduction |
|---|---|---|
| Purpose | Temporary work away from home | Permanent relocation to new work location |
| Minimum distance | 150 km from principal residence | 40 km closer to new work location |
| What's covered | Temporary lodging, one round-trip transportation, and meals during that round trip; combined max $4,000/year | Moving costs, temp lodging, selling old home, buying new home |
| Best for | Workers who return home when project ends | Workers who permanently relocate for the job |
For workers on a 6-month project who will return home, the Labour Mobility Deduction is the right tool. For workers who are genuinely moving to a new city permanently, the Moving Expense Deduction (which has no $4,000 cap and covers far more costs) may be larger. You cannot claim both for the same costs.
Other Deductions for Construction Workers
Union dues (line 21200)
Annual union dues paid to construction unions (Carpenters, Ironworkers, Labourers, Operating Engineers, etc.) are 100% deductible. Check Box 44 of your T4.
Tradesperson's Tools Deduction (line 22900)
Journeypersons who purchase required tools can deduct up to $500 annually (for eligible tool costs exceeding $1,195).
T2200 employment expenses
If your employer requires you to pay for work-related vehicle use, specific safety equipment, or other employment costs, claim these on Form T777 with a signed T2200.
Frequently Asked Questions
What is the maximum Labour Mobility Deduction for 2025?
$4,000 per year, subject to the $350/week weekly cap. This was the maximum from the 2024 budget onward (increased from $3,500 in earlier years).
Do I need a journeyman certificate to claim the Labour Mobility Deduction?
You must hold a journeyman certificate, a provincially recognized trade certificate in an eligible construction trade, or be registered as an indentured apprentice in the construction industry. Registered apprentices are eligible. Construction labourers without a recognized certificate or apprenticeship registration do not qualify for this specific deduction.
Can I claim both the Labour Mobility Deduction and Moving Expenses?
No — not for the same costs. The Labour Mobility Deduction is for temporary work away from a maintained home base. Moving Expenses apply to permanent relocations. You can claim the one that applies to your specific situation, but cannot double-claim the same expenditures.
What receipts do I need?
Keep all temporary lodging receipts (hotel bills, rental receipts, lease agreements), transportation receipts for the round trip between your home and the temporary location, meal receipts for that round trip, your journeyman certificate, proof of distance (150+ km), and documentation that the work was temporary. CRA actively reviews this deduction.
Does the Labour Mobility Deduction include meals?
Yes — but only meals consumed during the one round trip between your ordinary residence and the temporary work location. Eligible LMD expenses include temporary lodging at or near the work site, one round-trip transportation between home and temporary lodging, and meals during that round trip. All three are combined under the $4,000 annual cap. Daily meal costs at the job site are not covered.
Calculate your 2025 tax with the Labour Mobility Deduction included
Enter your construction income and eligible lodging costs — see your Ontario tax position in real time.