Tier 3 — Mid-Level Professional / Engineering
Individual contributor / mid-career. Mix of homeowner and renter.
Tightest convergence across CapRelo, ARC, moveBuddha, WHR — $15K-$35K is the consensus mid-level band.
1.What this tier typically includes
- Managed household goods move
- Temporary housing 30 days
- 1 home-finding trip
- Limited closing-cost reimbursement
- Capped lump-sum component ($10K-$25K)
- Limited or no spouse assistance
- Partial gross-up
- Miscellaneous allowance ($2K)
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 3 — mid-level professional / engineering at the midpoint of the cost band:
| Item | Amount |
|---|---|
| Net benefit to employee (midpoint) | $17,606 |
| Gross-up multiplier | ×1.42x |
| Total cost to employer | $25,000 |
| Tax gross-up portion | $7,394 |
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-career professional relocations. Tightest cohort agreement in the dataset ($15K-$35K band). Lump-sum core + capped components is the modern structural choice.
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 1 — Executive / Senior Leader · Tier 2 — Mid-Senior Management · Tier 4 — Entry-Level / New Grad / Intern