Moving to a new state can be exciting and a little scary, but it can also cost more than you expect. When you’re packing up to move, a lot of expenses are a given — packing materials, a moving van, and rent or mortgage payments — but there are some costs that might take you by surprise.
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Understanding and preparing for these costs ahead of time can help your move go smoother and ensure you’re not rushing to come up with cash in the midst of unpacking and organizing. Here are four hidden costs to be aware of so you can be ready for your big move.
Cost of Living
Cost of living varies from state to state and even city to city. According to SelfStorage.com, checking out a cost-of-living calculator can help you see how far your salary will go in a new state. Before you settle on your new town, check out how much it will cost to cover basic expenses like housing, utilities and groceries.
As an example, if your salary is $65,000 in Minneapolis, Minnesota, and you’re moving to Portland, Oregon, you would need to make $81,459 to maintain your same standard of living, based on Payscale’s cost-of-living calculator.
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State and Local Taxes
In the excitement of moving to a new state, it can be easy to forget things like changes in state and local taxes. Types of taxes and tax rates can vary widely between states.
For instance, Oregon doesn’t have sales tax at all, and Minnesota doesn’t charge sales tax on clothes. Seattle, Washington, on the other hand has a combined state and local sales tax rate of 10.35%. Keeping these things in mind will help prepare you for these hidden costs.
Vehicle Registration and Driver’s License
When you pack up and move to a new state, don’t forget that your vehicle is moving too. It may sound silly to say, but it’s important to remember because you’ll need to update your vehicle’s registration and get a new driver’s license.
Check the state’s requirements, so you know how much time you have to tackle these tasks. Some states have a grace period between the time you move and when you need to have these updated, but you should make sure you’re prepared for the costs that come with them.
Local Activities
SelfStorage.com pointed out that one of the hidden costs of moving to a new state is the cost for local activities that help to get you acquainted and involved in your new neighborhood. Whether it’s going out to a local restaurant or participating in a local festival, these costs can add up, especially when you’re excited to do and see all that the area has to offer.
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This article originally appeared on GOBankingRates.com: Moving to a New State May Cost More Than You Think — Here Are 4 Hidden Costs
