Laura answers a question about tips for moving out of state for a new job and offers a checklist.
Laura answers a question about tips for moving out of state for a new job and offers a checklist.
Transcript: https://money-girl.simplecast.com/episodes/whats-a-checklist-for-moving-out-of-state/transcript
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Welcome back to Finance Friday, another special edition of Money Girl, where I answer your burning money questions! Today’s question comes from Rachel, who says,
“I’m leaving a large corporation to relocate for a two-year job with a small nonprofit in a different state. I’ll be renting a furnished house in my new city. However, I still own the home that I previously lived in and am renting it out.
I have informed my current homeowners insurance company that I’m now a landlord. I plan to purchase a renter's insurance policy and update my auto insurance policy when I arrive at my new address.
Here are my questions:
I’m so grateful to have learned from your podcast about pertinent things as well as for future situations that I didn’t anticipate.”
Thanks for your kind words and great questions, Rachel! I’ve relocated out of state for work multiple times, so I can give you a good checklist to follow. This podcast will help you decide if relocating for a job is a good move and know how to prepare so the transition goes as smoothly as possible.
Welcome back to episode 947 of Money Girl–I appreciate you downloading the show! I'm Laura Adams, an award-winning author, on-camera spokesperson, female money speaker, and founder of The Money Stack, a Substack newsletter.
You can learn more, ask questions, and sign up for the Money Stack at LauraDAdams.com. Newsletter subscribers automatically receive my Money Success Toolkit with the exact templates I use to manage money.
Your financial checklist for moving out of state
While taking on a new job is incredibly exciting, moving is one of the most stressful life events because there are numerous tasks to plan and complete. Going out of state adds even more things you must do by certain deadlines. Use this checklist for a successful move that I hope will be less stressful.
1. Understand the cost of living in a new place.
When considering a move to a new state, I recommend taking the time to get to know your potential new city. At the very least, spend a whole day exploring the area you might want to live. Ensure you feel comfortable there and understand how you or your movers will access it, especially if you move into a challenging place, like I did on the twenty-first floor in a busy downtown city.
Use an app like Zillow to research the values of homes or the cost of renting a suitable place in various communities you're interested in. Remember that the rent you see probably doesn’t include many fees you may have to pay, like parking in a garage, leasing appliances, or having a pet. Work with a local real estate agent who handles rentals to find out what’s on the market and tour a few places, if possible.
Note if an area is walkable, has public transportation, access to shopping, a sufficient number of restaurants you want, or routinely experiences bumper-to-bumper traffic on nearby roads and highways.
You might be surprised by how different the culture, recreation, and cost of living will be compared to your current home. So, don’t take a job without doing some homework and seeing exactly where you’d be living.
When I relocated from Florida to the California Bay Area, I knew that buying a similar home would cost four or five times more than I paid for mine. Renting in California would give me a much better value, especially since I didn’t know how long I’d live there.
While California salaries and wages, especially in Silicon Valley, are high, in many cases, they’re not commensurate with the area’s housing costs. Additionally, California has one of the highest state income tax rates, and food prices are notoriously expensive. Avocados were one of the few things in California I ever felt were a bargain compared to Florida!
Suppose you earn $80,000 a year in Florida and get an offer to do the same job in California for $140,000. While that might sound appealing, what if the extra $60,000 a year wouldn’t cover your higher California housing, food, and taxes?
In other words, be sure that a relocation won’t be a net drain on your lifestyle. I knew people who moved to California after getting what seemed like a high offer from a startup, only to end up practically living in their car or having to share a tiny apartment with multiple people because they didn’t know how expensive housing was before accepting the job.
In some cases, having less disposable income might be worth it for a job that’s a massive stepping stone in your career. But if being financially worse off is something you don’t anticipate, it could be incredibly disappointing.
RELATED: How to hire the best real estate agent
2. Estimate your moving expenses.
Relocating out of state comes with many expenses. The largest may be hiring a moving company to pack your belongings, transport them, and unpack your boxes. Even if you do all the boxing and unboxing, a long-distance mover charges by weight, which can range from $0.50 to $1.00 per pound. Plus, there are extra fees for insurance, labor, fuel, and any last-minute packing required.
Shop the cost of a potential move with several moving companies to understand their services and fees. Be sure they specialize in the type of move you’ll need, such as a cross-country move over several days, moving into a high-rise building downtown, or handling delicate items like a piano, expensive artwork, or collectibles.
If you won’t drive your vehicle(s) to a new location, the cost to ship a car could range from $0.50 to $2.00 per mile, depending on the total distance, vehicle type, and method of transportation, such as having an open or enclosed trailer. Search online to ensure that any moving or transportation company you hire has good reviews.
Rachel asked if any of her relocation expenses or mileage driving to her new home would be tax-deductible. Unreimbursed moving expenses for a job used to be tax-deductible before the Tax Cuts and Jobs Act (TCJA) of 2017. However, that law suspended the deduction for most taxpayers through 2025.
As of July 4, 2025, the One Big Beautiful Bill (OBBB) permanently eliminates the tax deduction for moving expenses, with an exception that previously existed for the military and intelligence community.
Moving for a job, even to a different state, means you can’t deduct the cost of transporting your belongings or traveling to your new home on your federal tax return, unless you have military or government orders requiring you to move. The IRS allows a mileage rate of $0.21 for moving; however, that rate only applies to exempted individuals.
But tax rules vary by state, so Rachel should check the state she’s leaving and moving to for any potential state-level moving deductions or consult a tax professional for guidance. It’s always wise to keep detailed records of all moving-related costs in case you can use them to your advantage.
I recommend negotiating with an employer to cover the costs of a move, whether it’s the actual expenses or a predetermined flat rate, when you accept an out of state job. Since the TCJA, these expenses are generally considered taxable income to an employee, so remember that you’ll net less after taxes and consider increasing the gross amount to account for the portion you must pay to the federal and any state governments.
LISTEN ALSO: What is the One Big Beautiful Bill (OBBB) Tax Overhaul?
3. Pare down your belongings.
Since moving more things costs more, it’s the perfect time to pare down your possessions, especially the heavy ones you can live without. There’s no need to pay to transport sporting goods, furniture, and artwork that won’t fit into your new space or match your new decor.
While boxing up your belongings is a lot of work, it forces you only to keep what you genuinely need. Additionally, the cost of packing supplies, such as boxes, tape, markers, bubble wrap, and packing paper, can quickly add up. Consider acquiring used boxes that are still in good condition from a local mover who needs to dispose of them.
The more work, packing, and unpacking you do for a move, the less you’ll have to pay someone else. However, movers typically won’t insure boxes that they don’t pack, because they don’t know whether you did a good or bad job.
My experience is that good movers are worth paying for because they know how to safely transport your belongings and navigate complex situations, such as staircases, doorways, elevators, and any other scenario you can imagine. They can make potentially stressful situations during a long-distance move much easier to manage.
4. Discuss your insurance.
Moving to a new state will affect most of your insurance policies. Plus, if you have renters or homeowners insurance covering your belongings, only a portion of it applies when they’re in transit or off-premises. The insurance for your possessions could be as little as 10% or 20% of your coverage amount, which is likely insufficient.
Movers must provide you with a limited amount of coverage, typically based on weight, and usually offer additional coverage for a fee. Carefully consider the amount of off-premises coverage you already have and whether you want to supplement it.
If you have valuable items, consider buying actual replacement value insurance. It costs more, but the policy repairs or replaces items based on their agreed-upon value, which you must declare to the mover when you purchase coverage.
Rachel mentioned that she’s already informed her insurance company that she’ll have a tenant in her home. That’s essential because they may not honor a claim if you don’t switch to a landlord policy, which assumes more risk. If your insurer is licensed in your new state, they can assign you a new agent to update your policy or sell you a new one in your new location. However, you may want to shop and compare quotes for your new place with different carriers.
Property risks can be very different in your new location, so ask what coverage may be needed. For instance, I bought earthquake coverage in California. You could need insurance for hurricanes, wildfires, windstorms, or a separate flood policy, based on where you’ll be living.
Your auto insurance rates are based on your location, so you'll need to update your policy. Again, if your insurer is licensed to operate in your new state, they can update your policy. If not, you’ll need to shop around for a new carrier and compare quotes. Your auto insurance must be updated before you can register your vehicle in a new state, so make that one of your first tasks as you settle in.
If you don’t get health insurance through an employer, moving to a new state is considered a "qualifying life event." That allows you a special enrollment period to sign up for a new health insurance plan outside of the regular open enrollment period. You’ll need to enroll in a new plan in your new state, through the state or federal marketplace, or a private broker.
If you have a national health plan through a large employer, your coverage may transfer; however, you'll need to confirm it. To avoid a lapse in coverage, coordinate the end date of your old plan with the start date of your new plan.
Additionally, inform your doctors and dentists that you’re moving and will have professionals request your medical records once you establish them in your new community.
RELATED: Do I need a personal articles policy (PAP) insurance?
5. Start a list of address changes needed.
If most of your mail comes to your email address instead of a physical address, it makes address changes much easier when you move. When you know your new address and moving date, inform the U.S. Postal Service when to begin forwarding your mail.
Start of list of accounts and companies where you’ll need to change your address, including:
6. Set up your new residency.
Once you've settled into your new home, establish your legal residency by updating your driver's license, vehicle registration, and voter registration. Most states require you to obtain a new driver's license within a specific timeframe, typically 30 to 60 days after relocating there.
You’ll need to visit your new state's Department of Motor Vehicles (DMV) or equivalent agency in person. You may be able to make an appointment online to minimize the wait time. Find out what documents you need to take to verify your identity and new address.
Some states require you to take a written driving test, and in some cases, a road test; however, it’s often waived if you already have a valid out-of-state license. When I moved to California, I had to take a written rules of the road test, which included several laws that were different than Florida, so I had to do some studying.
You’ll need to transfer your vehicle's title and registration and pay fees for a new tag. That requires your out-of-state vehicle title, which must be coordinated with your lender if you have an auto loan.
To register your vehicle, you’ll need proof of auto insurance that meets the new state's minimum coverage requirements. The DMV will ask for your vehicle identification number (VIN) or request that you bring your vehicle in for inspection. You can often register to vote when you apply for your new driver's license or register your vehicle. So, be mindful of voter registration deadlines in your new state, especially if an election is approaching.
Rachel asked about her vehicle tag, and you generally must register your car in a new state after moving there permanently–even if you’re not sure for how long. It’s typically required within 10 to 30 days of establishing residency.
LISTEN ALSO: What are the different types of financial advisors?
7. Consider state taxes and laws.
Rachel also asked about whether you need more than one tax professional when you have income in multiple states. A good CPA should be able to prepare your tax return and provide guidance, regardless of where you have income and expenses.
However, if your new state’s taxes are more complex than the old one, such as having a state income tax or having more regulations for companies if you have business income, it may make sense to hire a tax professional in your new state.
For the year you move, you will likely be considered a "part-year resident" of both your old and new states. The rules for determining residency vary by state but are often based on the "183-day rule," or where you spend more than half the year and where you have a permanent home.
You will need to file part-year state income tax returns for both states, allocating your income to the period you resided in each. Tax software can typically guide you through this process, but I recommend using a tax pro.
Your new employer should ask you to submit a Form W-4 to ensure the correct federal and any state and local taxes are withheld from your paycheck.
Your emergency documents, such as a will, power of attorney, and healthcare directives, should be reviewed by an attorney in your new state to ensure they are valid and will be executed as you intend. If you don’t have these essential documents, put them on your list to do after getting settled in your new home.
Yes, there’s a lot to do before, during, and after an out-of-state move–but they don’t all have to be done at once. Create a list of short, medium, and long-term tasks, and focus on those that are most relevant so you don’t get overwhelmed. Let me know if I missed any tasks and the success of your long-distance move!
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That's all for now. I'll talk to you soon. Until then, here's to living a richer life!
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