For first-time movers and experienced movers alike, basic moving costs are stressful enough when you’re just moving across town, never mind when you’re moving out of state.
But when you’re talking about long-distance moves, the hidden moving costs add up quickly.
According to the American Moving & Storage Association, the average cost of moving to another state is about $2,000 more than the cost of moving to a location within your state. And that’s not to mention the added stress of moving to a new place. The last thing you need is to bump into unexpected costs when you get there.
Sure, professional movers may hit you with extra charges to cover fuel costs. You may need extra packing supplies to keep fragile items safe for longer drives and to foot the bill for deep cleaning the entire house before you move out.
But in addition to these standard moving costs, there are unplanned expenses you may not have planned for… until now.
This helpful guide reveals 6 hidden costs of moving to another state. We’ll help you prepare for these unexpected moving costs. Then, we’ll take a look at how SpareFoot can help you lower the hidden costs of moving out of state.
1. State Income Taxes, Sales Taxes, Real Estate Taxes, and Personal Property Taxes
If you currently live in one of the seven states that don’t have individual income taxes, or one of the two without earned income tax, and are moving to a state with income taxes, then you may be in for a shock next April when you do your taxes.
Depending on what state you’re moving to, you could face an additional 3-13 percent in state taxes!
And it’s not just income tax that’s affected by jumping state lines either. The percentage of sales taxes you pay in your current location could be much different than the sales taxes you’ll pay per dollar after moving out of state.
Real estate taxes and personal property taxes also change from state to state.
While some of us are peripherally aware that personal property taxes and real estate taxes fluctuate from state to state, it remains one of the most common hidden costs of moving to another state that people forget to consider.
2. Updating your Driver’s License and Vehicle Registration
When you change your state of residence, you’ll need to get a new driver’s license and vehicle registration. While you’re at it, you may as well update your voter registration.
And don’t get it twisted, even if you just updated your auto registration in your old state, your new state government expects you to register your vehicle with them if you plan to drive it on their road systems.
In addition to updating your vehicle registration, driver’s license, and voter registration, some states may require you to pay an annual auto tax. While some states do not have this extra road or auto tax, others may charge by the weight or age of the vehicle.
Depending on where you’re moving, you may need to pay hundreds of dollars in taxes on your vehicle. Don’t let this new tax bill surprise you. One of the first things on your change of address checklist should be to contact the Department of Motor Vehicles and the County Tax Office in your new town and find out ahead of time to budget properly.
And regardless of whether or not your new place of residence plans on weighing your vehicle and slapping you with a new tax payment, updating your auto registration and state ID/driver’s license isn’t an option. It’s a legal requirement, making it a hidden cost of moving out of state for many of us.
3. Utility Cancellation Fees, Security Deposits, and Connection/Installation Fees
When you move across town or even to another part of your state, you may be able to keep the same utility providers and simply transfer your service to a new address.
But not every electrical and cable company. Trash pick up, water, and gas are typically run either by the city or outsourced to small local companies.
Another hidden cost of moving to another state is the additional charges you’ll have to pay to the utility companies–both new and old.
Your current service providers will hit you with unexpected charges in the form of service cancellation fees. Meanwhile, the new companies will charge surprise expenses like security deposits, enrollment fees, and connection fees.
You may also face fees for canceling memberships or terminating contracts with entities such as your gym and internet, cable, and satellite providers. Most of these fees and penalties won’t break the bank, but the unexpected expenses can be an inconvenient addition to the stress of moving.
Be sure to leave some room in your budget for all the hidden costs of transferring your utilities and service providers.
4. Hiring Full-Service Movers For Long-Distance Moves
Moving all of your household belongings to a new state on your own may not be as fun of a DIY moving adventure as moving to a new home across town.
For instance, you can’t make multiple trips back and forth with your truck rental. Nor can you make mini runs in your personal vehicle after work everyday.
No, for an out-of-state move, hiring experienced movers may actually save you some money, and will definitely save you some time. Hiring a moving company to perform a full-service move means they handle packing the truck and driving it from one doorstep to the other.
Meanwhile, you either road trip in your personal vehicle at your leisure or have them trailer your car and fly across the country.
That said, moving companies may charge by a number of factors, including fuel charges, the amount of space your items take up, the total weight of your items, and the distance they’ll need to travel.
And don’t forget, hiring full-service movers means buying a plane ticket or paying fuel costs, changing your fluids, and putting wear and tear on your personal vehicle and tires.
5. Additional Insurance For Moving/ Updating Auto Insurance Coverage
If you do decide to hire movers, one of the hidden costs of moving to another state that they don’t always include in their initial quote is the additional cost to insure your items during long-distance transport.
And even if you’re packing up a moving truck rental and making the drive yourself, you’re already paying by the mile. And your renters or homeowners’ insurance doesn’t always cover your belongings while they’re in the back of the truck.
Once you get to your new destination, you’ll have to update your auto insurance company with your new address. And guess what—your automobile insurance rates are based on the likelihood of an accident in the area you drive most frequently.
That means if accidents happen more frequently at your new place, your auto insurance rates may go up, making car insurance one more hidden cost of moving to another state to keep on your radar.
Bonus Tip: Watch out for Fuel Charges and the Cost of Transporting Vehicles
If you have more vehicles than licensed adults to drive them, then you’ll likely need to pay to have your vehicle(s) transported to your new town. But before you start shopping around for the lowest price, remember that you get what you pay for.
For instance, covered transport can be much more expensive than uncovered transport, but covered transport makes your vehicle much less vulnerable to weather, road hazards and theft.
If the condition of your vehicle is important to its value, such as with classic cars and high-value sports cars, then you should seriously consider covered transport.
Be sure to ask your car insurance provider if your policy protects your vehicle during transport. If it doesn’t, the transport company may charge you an insurance upcharge–yet another unexpected moving cost to consider.
And even then, not all transport companies offer insurance. When you speak to transport companies, ask if they offer coverage, and make sure it’s sufficient for the value of your vehicle.
Finally, not all transport companies calculate fuel costs the same way. Some of them factor fuel into the total price, while others surprise you with additional fuel charges after a certain number of miles.
The high cost of moving vehicles long distances is a hidden cost of moving out of state that too many people forget to consider… until they get the bill.
How SpareFoot Can Help Lower the Hidden Costs of Moving to Another State
Many of the hidden costs of moving out of state come from moving vehicle transport, hiring movers, or renting a truck and driving yourself. The truck and/or moving companies use a combination of per-day and per-mile fees to calculate the final cost, meaning that once you get to your new home, you’ll want to unload your stuff and return any and all rentals asap.
That’s where SpareFoot comes into play! We can help you find a storage unit by your new home that offers your first month of storage for FREE. And even if it takes longer than a month to get situated in the new pad, you can often rent a storage unit for a whole month for the same amount of money a truck rental costs for a single day!
One of the most efficient ways of lowering the hidden costs of moving to another state is to get a storage unit next to your current address so that you can pack and prepare before the big day. You can then use our search tool to find a second unit across the country just by entering the zip code of your new home.
Whether you need one storage unit or two, our SpareFoot storage search tool makes finding ideal facilities for self-storage as easy as entering your zip code, filtering the options, and scrolling the results until you find exactly what you need.
Unexpected moving costs add up quick, so it’s important to get it all right the first time by staying organized, packing beforehand, and storing your belongings in a safe space during downtime.
Frequently asked questions
How much money should you save before moving to another state?
For out-of-state moves, you should save between $2,000 and $7,000 for DIY moves or $4,200 and $12,000 for full-service movers. We suggest budgeting additional funds for unexpected moving expenses like utility deposits, registration fees, state taxes, and insurance changes.
What is the most cost-effective way to move to another state?
The most cost-effective way to move interstate is renting a moving truck and driving yourself with friends or family to help load and unload. Declutter before moving, seek discounts (AAA, military, student), move midweek during the off-season (October-April), and pack efficiently to save space.
What is the average cost to relocate to another state?
The average cost to relocate interstate is $2,000-$7,000 for DIY moves and $4,200-$12,000 for full-service movers. According to the American Moving & Storage Association, moving to another state costs approximately $2,000 more than moving within your current state.
What is the most expensive part of moving?
The most expensive parts of moving are professional moving services, especially for full-service movers, which include packing, loading, driving, unloading, and unpacking. If you move yourself, the rental truck and transportation costs like fuel and vehicle maintenance are major expenses. Long-distance moves and international moves also tend to cost.
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