The short answer: when a job requires you to move, negotiate two things separately: a salary that fits the cost of living in the new location, and a relocation package that covers the one-time costs of moving. Research the new city’s costs (housing, taxes, transport, childcare), get the offer in writing, then ask about relocation support specifically: moving costs, temporary housing, travel, and help with visas or schooling if you’re moving abroad. In the U.S., most relocation payments count as taxable income, so ask whether the employer will “gross up” them to cover the tax.
When to raise relocation and salary
- Early, briefly: if you’d need to move, say so in the first conversation so there are no surprises.
- In detail, after the offer: negotiate the numbers once they want you. See salary expectations for earlier-stage questions.
- In writing: make sure the final package is in your offer letter or a relocation agreement.
Compare the real cost of living
A higher salary may not go further in an expensive city. Compare:
- Housing (rent or mortgage, deposits).
- Income and local taxes, and social contributions abroad.
- Transport, childcare and schooling, healthcare.
- Everyday costs such as groceries and utilities.
Use the difference to justify your salary request: “To keep the same standard of living, I’d need about X.”
What a relocation package can include
| Item | Examples |
|---|---|
| Moving costs | Packing and shipping household goods, car shipping |
| Travel | Flights or mileage for you and your family; a house-hunting trip |
| Temporary housing | Furnished accommodation for 30 to 90 days |
| Home sale or lease | Help with selling costs or breaking a lease |
| Lump sum | A fixed amount to spend as you choose |
| Immigration support | Visa and work permit fees, legal help (for moves abroad) |
| Family support | Spouse job search help, school search, language classes |
| Tax help | Tax advice or gross-up of taxable relocation payments |
Packages vary widely: some companies offer a fixed lump sum, others pay costs directly or reimburse receipts.
Taxes on relocation payments (U.S.)
Under current IRS rules, moving expense deductions and the exclusion of employer moving reimbursements from income apply only to members of the Armed Forces on active duty moving under military orders and, from 2026, certain intelligence community employees. For most other employees, relocation payments are treated as taxable income. That’s why a “gross-up” (extra pay to cover the tax on the relocation payment) is worth asking about. Rules differ in other countries, so check locally.
Questions to ask about a relocation package
- “Is relocation support offered as a lump sum, direct payment or reimbursement?”
- “What’s included: moving, travel, temporary housing, a house-hunting trip?”
- “Is the relocation payment grossed up for tax?”
- “Is there a repayment clause if I leave within a certain period, and how is it prorated?”
- “Who handles the visa process, and who pays for it?” (for international moves)
- “When does the support need to be used by?”
Scripts
Asking for relocation support:
“I’m excited about the offer. Since the role requires me to relocate from [city], could you tell me what relocation support is available? My estimate for moving costs and a month of temporary housing is about [amount].”
Negotiating salary for a higher cost of living:
“Based on my research, housing and taxes in [new city] are about [X%] higher than where I live now. To make the move work, I’d be looking for a base salary of [amount]. Is there flexibility there?”
If they can’t move on salary:
“I understand the salary band is fixed. Could we look at a larger relocation allowance, a signing bonus or a salary review after six months instead?”
See our salary negotiation guide for more.
Repayment clauses
Many relocation agreements require you to repay some or all of the support if you leave within a set period, often a year or two. Ask for repayment to be prorated (reduced month by month) and for exceptions if you’re laid off.
International moves: extra considerations
- Contract and currency: which country’s law governs the contract, and which currency you’re paid in.
- Taxes and social security: you may become tax resident in the new country; ask about tax advice and treaties.
- Healthcare and pensions: what coverage you’ll have and what happens to your pension at home.
- Visas: who sponsors and pays, and the timeline. See work visa interview red flags and how to prepare.
- Family: spouse work rights, schooling and language support.
Related guides: asking for more time to consider an offer, equity and RSU basics and working remotely from another country.
Frequently asked questions
How do I negotiate salary when relocating?
What should a relocation package include?
Is relocation assistance taxable in the U.S.?
What questions should I ask about a relocation package?
What is a relocation repayment clause?
Sources
- Internal Revenue Service, Topic no. 455, Moving expenses for members of the Armed Forces and the Intelligence Community. Read on 2 October 2026.
