Itemize what your move really costs, compare it against the package after taxes — and see the gross-up gap worth negotiating.
Where you land
—
| Package after taxes | — |
| Your move costs | — |
| Gross-up worth negotiating | — |
| — |
Withholding estimated at the 22% federal supplemental rate + 7.65% FICA (~30%); states add more. Ask HR two questions: "grossed up?" and "what's the clawback?" Not tax advice.
The relocation math
after-tax package ≈ package × ~70% (unless grossed up)
your position = after-tax package − itemized move costs
The 2018 tax change quietly turned every relocation package into a ~30% smaller number, and plenty of offers are still quoted as if it hadn't. A gross-up clause restores the full sticker value — it costs the employer real money, which is exactly why it's worth asking for by name.
A worked example
A $10,000 package, not grossed up, against a $4,500 mover, $3,000 of temporary housing, and $1,500 of vehicle and deposit costs: the package nets ~$7,000 against $9,000 of expenses — you're $2,000 out of pocket for taking the job. The same package grossed up covers the move with $1,000 to spare. One question, $3,000 swing.
Negotiating the package
In rough order of value: gross-up (worth ~30% of the package), layoff carve-out in the clawback (our clawback calculator shows the exposure), the number itself (quote your itemized costs — concrete asks win), and 60 days of temporary housing if the market is tight. Then fold the result into the full offer comparison — and check what the new city does to the salary with the commute math included.
Frequently asked questions
Is relocation money taxable?
Yes — since 2018, employer moving money is taxable wages, whether it's a lump sum or the company paying movers directly. A '$10,000 relocation package' is really ~$6,500–7,500 after withholding UNLESS the employer 'grosses it up' (pays extra to cover the taxes). Whether your package is grossed up is the single most valuable question to ask.
What does a typical move actually cost?
Rough 2026 ranges: a DIY truck move runs $1,500–4,000 cross-country; full-service movers for a household run $5,000–12,000+; add temporary housing ($2,000–5,000/month), a house-hunting trip, lease-break fees, and vehicle shipping ($1,000–2,000 each) as they apply. The calculator itemizes so nothing surprises you in month two.
Lump sum or company-managed move — which should I take?
Lump sum pays you cash and lets you keep what you save with a cheap move — but you eat overruns and the tax bite. Company-managed (they book and pay movers directly) removes the risk and hassle but pays you nothing for frugality. Frugal movers with small households usually net more from the lump sum; families with full houses usually do better managed.
Do I have to pay back relocation money if I quit?
Usually yes inside 12–24 months — relocation clawbacks are standard and work like sign-on bonus clawbacks (our clawback calculator does that math). Read whether yours prorates or is all-or-nothing, and whether layoffs are excluded — being let go AND owing back the move is the clause to negotiate away.