Quick answer
In a relocation package, ask for the full cost of a professional move including packing, travel to the new city, temporary housing, a house-hunting trip, and help with lease or home sale costs. Ask how it is paid, whether it is taxed, and what you owe back if you leave early.
In this guide
- What is a relocation package?
- Types of relocation packages and how they pay
- What to ask for in a relocation package
- How to find out what your job relocation will cost
- How to negotiate a relocation package
- Taxes, repayment clauses, and other fine print
- What if the employer offers no relocation assistance?
- Frequently asked questions
What is a relocation package?
A relocation package is the set of benefits an employer offers to help a new hire or a transferring employee move for work. Some companies have a formal policy with fixed tiers by job level. Others decide case by case. Many smaller employers have no policy at all, which often means the terms are open to discussion.
Relocation assistance is part of your compensation, the same as salary and vacation time. It is reasonable to ask about it before you accept, and it is a normal question when the job requires a move. The best time to raise it is after you have the offer and before you say yes.
Types of relocation packages and how they pay
How the money reaches you matters as much as the amount. These are the common structures:
| Type | How it works | What to watch |
|---|---|---|
| Lump sum | The employer pays you one fixed amount and you arrange everything | Simple and flexible, but any cost above the amount is yours |
| Reimbursement | You pay for approved expenses and submit receipts | You front the money. Ask what is covered, the cap, and how quickly you are repaid |
| Direct bill | The employer pays the moving company and other vendors directly | Little out of pocket. Ask whether you may choose your own mover |
| Managed move | A relocation firm hired by the employer coordinates the whole move | Least work for you, with less say over vendors and dates |
A lump sum relocation offer is the one that most needs homework. Before you agree to a figure, find out what your move will actually cost.
What to ask for in a relocation package
Few packages include everything below. Use the list to decide what matters most for your household, then ask for those items by name.
- A full-service household move. Loading, transport, unloading, and valuation coverage for your belongings
- Packing and unpacking. A large time saver when you are also wrapping up one job and starting another
- Travel to the new city. Mileage or airfare, hotels, and meals for you and your family on the way
- Vehicle shipping if the distance is long or you have more cars than drivers
- A house-hunting trip before the move, with travel and lodging paid
- Temporary housing while you look for a permanent place or wait for a closing
- Storage if your new home is not ready when the truck arrives
- Lease break or home sale help. Penalties for ending a lease early, or assistance with closing costs and agent fees
- Spouse or partner job search support
- A tax gross-up, meaning extra pay to offset any taxes owed on the benefits
- Extra time. A later start date or paid days off for the move itself
Need a real number for your negotiation? Get a free, flat-rate long-distance moving quote you can take to your new employer.
How to find out what your job relocation will cost
You cannot judge an offer without knowing your own numbers. Before you negotiate, build a simple budget for the job relocation:
- Get a written moving quote. Long-distance moves are priced on distance, the size of your inventory, and added services such as packing. Allpoints provides free, no-obligation, flat-rate quotes for long-distance moving, so you have a firm figure to bring to the conversation
- Price the travel. Fuel or flights, hotels, and meals for everyone in the household
- Estimate housing overlap. Weeks of temporary housing, a double rent or mortgage payment, deposits, and utility setup fees
- Add the one-time costs. A new driver's license and vehicle registration, and whatever the new home needs on day one
Our moving checklist helps you catch the costs people forget. If the employer's number comes in below your total, you now have specifics to point to.
How to negotiate a relocation package
You do not need to be a hard bargainer to negotiate a relocation package. You need to be specific.
- Ask what the standard policy is first. You may find it already covers more than you planned to request
- Lead with your actual costs. "My moving quote is this amount and I will need about a month of temporary housing" is easier to approve than "can you do better"
- Prioritize. Pick the two or three items that would cost you the most and focus there
- Offer trade-offs. If the budget is fixed, ask about a later start date, a signing bonus, or direct payment of the mover in place of reimbursement
- Stay flexible on dates. Moving outside the summer peak and away from the end of the month can lower the cost for whoever is paying
- Get every term in writing in the offer letter or a separate relocation agreement
Taxes, repayment clauses, and other fine print
Three details change what a package is really worth.
Taxes. Relocation benefits can count as taxable income, and the rules depend on the type of expense and on current tax law. Ask the employer how the benefits will be reported and whether a gross-up is included. Then confirm what it means for you with a CPA or tax professional before you rely on a number.
Repayment. Many relocation agreements require you to pay back some or all of the benefits if you leave the company within a set period. Read how long that period runs, whether the amount shrinks over time, and what happens if you are laid off.
Deadlines and limits. Policies often set a window for using the benefits and for turning in receipts, and may limit which vendors you can use. Keep every receipt, and ask before you book anything that might not qualify.
What if the employer offers no relocation assistance?
Ask anyway, once and politely. If the answer is still no, you have other levers: a signing bonus, a higher starting salary, a later start date so you can move without rushing, or a few paid days off for the move.
You can also bring the cost down yourself. Declutter before you get a quote, since a smaller shipment costs less to move. Pack some of your own boxes and leave the fragile rooms to the crew. Book early. We recommend 3 to 4 weeks of notice for a long-distance move, and more in summer.
When you are ready for a real number, request a free quote. If you are weighing how to get yourself there, see our guide on whether to drive or fly to your new home.
Key takeaways
- Relocation assistance is part of your compensation and is fair to ask about before you accept
- Know whether the offer is a lump sum, reimbursement, direct bill, or managed move
- Get a written moving quote first so you can negotiate with real costs
- Ask about taxes and a gross-up, and confirm the details with a CPA
- Read the repayment clause and get every term in writing
