Relocation Package Cost Calculator
Calculate the total cost of a relocation package including all reimbursements, allowances, and tax gross-up amounts.
Why Relocation Costs Have Become More Expensive
Prior to 2018, employees could exclude qualified moving expense reimbursements from taxable income. The Tax Cuts and Jobs Act of 2017 (TCJA) eliminated this exclusion for non-military employees through 2025; OBBB 2025 extended the suspension through 2025 (status for 2026+ pending). Result: most relocation reimbursements are now fully taxable to the employee — making employer gross-up nearly universal in executive relocations.
Industry data (Worldwide ERC 2026 Survey): 90%+ of large employers gross-up relocation benefits in some way. Median gross-up multiplier: 1.45-1.65× direct cost. Total cost of a typical mid-level relocation: $25,000-$60,000. Executive relocations: $80,000-$250,000. Source: Worldwide ERC 2026 Relocation Survey. Last updated: May 2026.
Components of a Standard Relocation Package
| Component | Typical Cost |
|---|---|
| Movers + transport | $5,000-$15,000 |
| Temporary housing (30-90 days) | $4,000-$15,000 |
| House-hunting trips | $2,000-$6,000 |
| Home sale assistance (closing costs + agent) | $15,000-$40,000 |
| Miscellaneous allowance (lump sum) | $3,000-$10,000 |
| Loss-on-sale protection | $0-$50,000 |
| Tax gross-up | 40-65% of taxable amount |
Lump-Sum vs Itemized Reimbursement
(1) Lump sum: Single payment, employee manages all relocation. Simpler administration; employee absorbs risk and unused savings. (2) Itemized reimbursement: Employer reimburses actual receipts. More work to administer but ensures funds are spent on relocation. Most mid-tier programs combine: itemized for movers + temp housing, lump sum for miscellaneous.
Tax Gross-Up Math
Since reimbursements are taxable, employees would actually be worse off without gross-up. The math: if you give an employee $10,000 reimbursement and they're in a 32% bracket, they pay $3,200 in tax — net benefit only $6,800. To leave them whole, employer must add: $10,000 × 0.32 / (1 − 0.32) = $4,706 gross-up. Total cost to employer: $14,706 to give employee $10,000 net benefit.