Tier 1 — Executive / Senior Leader
C-level, SVP, VP. Typically homeowner with family.
CapRelo (Jan 2026) cites $55K-$90K+ for executive homeowners; moveBuddha 2026 extends to $150K+ for executive/C-suite. Upper bound reflects international + GBO.
1.What this tier typically includes
- Full-service household goods move (up to 18,000 lbs)
- Guaranteed buyout (GBO) or BVO home-sale program
- Home purchase assistance + closing-cost coverage
- Temporary housing 60-90 days
- Multiple home-finding trips for employee + spouse
- Spouse / partner career assistance
- School search / private school placement
- Pet relocation
- Tax gross-up on all taxable components
- Miscellaneous allowance ($5K-$10K)
- Loss-on-sale protection
2.Gross-up math at this tier
OBBBA-permanent tax treatment means every taxable component requires gross-up at the 29.65% combined federal rate (plus state). For a tier 1 — executive / senior leader at the midpoint of the cost band:
| Item | Amount |
|---|---|
| Net benefit to employee (midpoint) | $72,183 |
| Gross-up multiplier | ×1.42x |
| Total cost to employer | $102,500 |
| Tax gross-up portion | $30,317 |
3.How this tier shifted post-2017
Before TCJA 2017, qualified moving expenses (household goods + first-trip travel) were excludable from employee income under IRC §132(g). Companies paid the relocation, employees didn't see it on their W-2, no gross-up was needed. TCJA suspended that for 2018-2025; OBBBA (signed July 2025) made the suspension PERMANENT. As of 2026, every relocation benefit at every tier requires gross-up.
Practical impact at this tier: employer cost is now ~42% higher than the pre-2017 economics for the same benefit delivery. Many companies have shifted toward lump-sum + core/flex structures to give employees more choice over which components they actually need.
4.When to use this tier
Reserved for executive relocations where the strategic value to the company materially exceeds the package cost. Guaranteed buyout protection and loss-on-sale features are the differentiators vs Tier 2.
Source: https://www.caprelo.com/insights-resources/program-administration/how-much-is-the-average-relocation-package-what-is-included/ · Verified 2026-06-03 · industry reported
Other tiers
Tier 2 — Mid-Senior Management · Tier 3 — Mid-Level Professional / Engineering · Tier 4 — Entry-Level / New Grad / Intern