Tier 2 — Mid-Senior Management
Director / senior manager, typically homeowner.
WHR Global 2025 benchmark: average domestic homeowner relocation $63,685 — sits inside this tier band.
1.What this tier typically includes
- Full-service household goods move
- BVO home-sale program (not GBO)
- Home purchase closing-cost reimbursement
- Temporary housing 30-60 days
- 1-2 home-finding trips
- Spouse career assistance (capped)
- Pet relocation (capped)
- Tax gross-up on most components
- Miscellaneous allowance ($3K-$5K)
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 2 — mid-senior management at the midpoint of the cost band:
| Item | Amount |
|---|---|
| Net benefit to employee (midpoint) | $38,732 |
| Gross-up multiplier | ×1.42x |
| Total cost to employer | $55,000 |
| Tax gross-up portion | $16,268 |
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
Mid-senior management and director-level moves. The BVO (Buyer Value Option) home-sale structure saves the company ~$15K per move vs direct reimbursement + gross-up — the cost benefit makes Tier 2 packages economically attractive at this band.
Source: https://whrg.com/blog/how-much-is-the-average-u-s-domestic-relocation-package/ · Verified 2026-06-03 · industry reported
Other tiers
Tier 1 — Executive / Senior Leader · Tier 3 — Mid-Level Professional / Engineering · Tier 4 — Entry-Level / New Grad / Intern