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Moving Is Expensive: Do Not Let It Eat Your First Paycheck
Cross-country moves average $4,000 for a small apartment. Local moves can still run $1,000–$2,000. If you accept a job in a new city without relocation assistance, you are effectively taking a pay cut in your first year. Many employers expect to cover moving costs for roles they are actively recruiting for. The key is asking—and knowing what to ask for.
Relocation packages are most common for salaried roles, but some hourly and contract positions also offer them, especially for hard-to-fill roles or when you are relocating from another region. It never hurts to ask during the offer stage.
Tax Warning
Relocation benefits are taxable income (per TCJA 2017). A $5,000 lump sum might only put $3,500 in your pocket after taxes. Ask if the company offers a "gross-up" to cover the tax bill so you receive the full amount.
Types of Relocation Packages
Employers structure relocation assistance in different ways. Each has pros and cons. Understand your options before negotiating.
| Type | How It Works | Pros & Cons |
|---|---|---|
| Lump Sum | One-time payment (e.g., $5,000) | Flexible; use as needed. Taxable. |
| Reimbursement | Submit receipts; company pays you back | Safe; you need cash upfront. |
| Direct Bill | Company pays movers directly | Easiest for you; less flexibility. |
| Gross-Up | Company adds extra to cover taxes | You receive full amount; ask for it. |
Lump Sum
Best for flexibility. Use for movers, travel, or temporary housing. Remember taxes.
Reimbursement
Submit receipts. You need cash upfront. Good if you have savings.
Direct Bill
Company pays movers. Easiest option. Less control over vendors.
How to Ask for Relocation Assistance
Bring it up after you receive the offer, before you accept. Say: "I am excited about this role. Relocating will involve significant moving costs. Is there a relocation package or assistance available?" If they say no, you can counter: "Would you consider a one-time lump sum of $X to help offset moving expenses?" Base your number on real quotes from movers and travel.
Add 30% to cover taxes. If you need $4,000 net, ask for ~$5,200 so after taxes you have enough.
Know Your Monthly Income After the Move
Convert your new hourly or salaried offer to monthly pay.
Calculate My SalaryFrequently Asked Questions
Less common than for salaried roles, but some employers offer them for hard-to-fill positions. Always ask.
The company adds extra money so that after taxes you receive the full relocation amount. E.g., they pay $6,500 so you net $5,000.
Some companies require repayment if you leave within 1–2 years. Read the offer letter and ask before accepting.
Yes. Ask during the offer stage. "I would need to relocate for this role. Is there any assistance available?"
Consider asking for a higher salary or signing bonus to offset moving costs. Or factor moving into your decision to accept.
Conclusion
Relocation packages can save you thousands when moving for a job. Ask for lump sum, reimbursement, or direct bill—and request a gross-up to avoid tax surprises. Use our Hourly-to-Monthly Calculator to understand your new income and plan your move budget.