Relocation packages explained

• Household goods shipping
• Final travel
• Temporary housing
• House-hunting trips
• Home sale or lease-break help
• A miscellaneous allowance
• Tax assistance

• Atlas Van Lines’ 2026 survey of 549 US and Canadian companies, as summarized by a relocation firm: the most common lump sum was $10,000 to $12,499. Lump sums were 19% of 2025 moves and 47% were fully reimbursed.
• Worldwide ERC’s 2022 data, quoted by a blog: an average domestic transfer of $85,466 for a homeowner and $33,532 for a renter. That is old.
• ARC Relocation, a vendor, gives roughly $21,800 for renters and $63,700 for homeowners.
• One planning guide puts entry-level renters at $5,000 to $15,000.

• Employer-paid moving costs are generally counted as taxable wages. One guide’s example: a $10,000 benefit can add roughly $2,400 of federal tax at a 24% bracket.
• The federal moving deduction was suspended by the 2017 tax law. The IRS page shows the suspension running through 2025. Several guides say the 2025 budget law made it permanent, others call it unsettled. Check the current rule with a tax professional.
• Active-duty military moving under orders can still claim it.
• Some states did not follow the suspension. One list names New York, California, Massachusetts, New Jersey, Pennsylvania, Arkansas, Hawaii, Iowa and Minnesota.

• Ask whether a tax gross-up is available. A gross-up means the employer pays extra to cover the tax on the benefit.
• Compare a managed move with a lump sum. Lump sums leave the work and the risk with you.
• Ask how long temporary housing is covered and whether the package must be repaid if you leave.
• Ask whether the package covers a spouse’s job search.

Use the calculator to see what a lump sum is worth after tax.