Employee Relocation Guide
Corporate mobility cost differs sharply between lump-sum and managed programs, and between renters and homeowners.
Relocation policy benchmarks
- Lump-sum average: $14,608.
- Managed — renter: $21,792.
- Managed — homeowner: $63,685.
- Home-sale assistance / closing costs: about $32,400 for the median U.S. home (scales with home price).
- Tax gross-up: 40–50% (employer-paid tax offset on taxable benefits).
Choosing a policy
Lump-sum shifts risk to the employee and is cheaper to administer; managed programs improve candidate acceptance and experience but cost more. Homeowners are far more expensive than renters once home-sale assistance is included — model both with the calculator.
Tax context (2025)
Suspended for most taxpayers 2018-2025 under TCJA (IRC §217). The One Big Beautiful Bill Act (OBBBA, signed July 4, 2025) made that suspension PERMANENT for tax years beginning after Dec 31, 2025 (IRC §217(k)) — there is NO restored deduction for civilian employees. Employer reimbursement exclusion (IRC §132(f)) is also permanently repealed (OBBBA §70113), so employer-paid moves are taxable wages. Exceptions: active-duty military and (newly added) Intelligence Community personnel. Not tax advice.
Ordinary and necessary business moving/relocation costs (office moves, employee relocation as a business expense, rigging) are generally deductible as business expenses. Relocation benefits provided to employees are taxable wages to them but deductible to the employer as compensation. Not tax advice.
Under the One Big Beautiful Bill Act (signed July 4, 2025), employer-paid moving reimbursements are taxable wages to the employee and the civilian moving deduction remains suspended. Budget gross-up accordingly and consult a tax professional.
whrg.com, www.crowell.com, www.kpmg.com, www.calt.iastate.edu, www.congress.gov, www.irs.gov, finance.yahoo.com, jilaniplace.com, www.vectorinstallations.com, www.vectorinstallations.com, ocnjdaily.com, agmoving.com, lincolnmoving.com, www.dir.ca.gov, sam.gov, www.fmcsa.dot.gov, www.bls.gov, www.worldwideerc.org, www.atlasvanlines.com, www.cbre.com, www.irs.gov. Figures are model benchmarks, not quotes. ReloFig never sells your information.