As one door closes, another opens.
This saying couldn’t be more true when it comes to moving to a new state.
Every move you make comes with a bit of adrenalin and an insurmountable to-do list, even when it involves living in some place new — but there are a set of legal things to do when moving to a new state that must be thought about.
Did you know that, according to the U.S. Census Bureau, more than 7.4 million Americans moved to a different state in the last two years?
That number surged as remote work options gave people the freedom to choose locations based on lifestyle rather than office proximity.
However, as exciting as the idea of starting over can be, the legal side of moving is a complex process that’s easy to overlook.
Missing a step or delaying could mean fines, loss of benefits, or tax complications down the line.
This blog will provide everything you need to legally establish yourself in a new state and make the most of your fresh start.
Change of Address
First things first, you will need to handle the change of address requirements.
It may sound like a basic task, but it affects multiple agencies and services, like the post office, the DMV, and your financial institutions.
Here’s where to start:
USPS: Update your address with the U.S. Postal Service.
This can be done online and typically costs about $1.10 for identity verification.
Once this is set, USPS will forward your mail for 12 months (for most mail types).
Banks and Credit Cards: Inform your banks and credit card providers to avoid missing any critical statements.
Insurance Providers: Home, auto, health, and life insurance companies need your updated address to keep your policies active.
According to the U.S. Census Bureau, 27 million Americans moved and forgot to update their address.
Establish Residency in a New State
Becoming a legal resident isn’t as simple as moving your belongings.
Every state has its own rules for establishing residency in a new state.
It often includes meeting a minimum stay requirement of 183 days (six months) in most states.
Here are the basics:
Physical Presence: You generally need to spend the majority of the year in your new state.
Intent to Reside: Opening a bank account, registering to vote, and transferring your driver’s license are strong indicators of your intent to reside.
Residential Proofs: Have proof of residence, such as utility bills or a rental lease.
This process is especially important for tax purposes, as it determines your eligibility for state benefits and requirements.
The State Tax Implications of Moving
Taxes are a significant consideration when relocating.
The state tax implications of moving can affect your income tax, property tax, and even sales tax rates.
Income Tax: If your new state has no income tax (like Florida or Texas), you might save significantly.
However, you will need to officially cut ties with your former state to avoid dual taxation.
Property Tax: Property taxes can vary across states.
If you have purchased a home, research your state’s property tax rate, as some (like New Jersey) have notably high rates.
Sales Tax: Sales tax is also state-specific.
Moving to a state with a lower rate could save you on daily purchases.
According to a Tax Foundation study, California has one of the highest state income tax rates at 13.3%, while states like Florida and Texas have no state income tax at all.
Transfer Your Driver’s License to New State
One of the key legal steps when relocating interstate is updating your driver’s license.
Most states require you to transfer your license within 30-60 days of moving.
This might feel like a minor task, but it’s essential for proving residency and avoiding fines.
Here’s how you can do that:
Gather Necessary Documents: You will need proof of your Social Security number, proof of residency (like a utility bill), and your current license.
Visit the DMV: You must appear in person at a DMV in your new state. Some states may require a written test or eye exam, so check the DMV requirements online first.
Fees: Pay a fee that varies by state; it ranges from $10 to $50.
Register Your Car in Another State
If you own a car, registering your car in another state is mandatory.
Like the driver’s license, there’s usually a deadline for this, often around 30 days after residency.
Here’s the process:
Proof of Residency: Have documents proving you are now a resident, such as a rental agreement or utility bill.
Insurance Requirements: Some states have specific auto insurance minimums, so check if your current policy meets those. You might need to get a new policy if it doesn’t.
Fees and Inspections: Be ready to pay registration fees, which can vary from state to state.
Update Voter Registration After Moving
Updating voter registration after moving is important to exercise your right to vote in local and national elections.
Each state has its own rules, but generally, you’ll need to re-register:
Online or in-person: Many states allow online voter registration. Alternatively, you can register in person at your local DMV.
Deadlines: Be mindful of registration deadlines, especially if there’s an upcoming election.
Absentee Voting: If you are moving close to election time, request an absentee ballot from your former state to avoid missing out.
Notify the IRS of the Address Change
Don’t forget to notify the IRS of the address change so that all tax documents that reach you can be checked.
Here’s how to do it:
Form 8822: Submit IRS Form 8822 to officially update your address with the IRS.
Online Updates: Although the IRS doesn’t have a direct online address update option, you can update your address when you file your taxes electronically.
Important Documents to Update When Moving
Your address needs to be updated on several key documents to maintain legal and financial stability.
Documents to update when moving include:
Social Security Card: While your Social Security number doesn't change, it is essential to update your address if you receive SSA benefits.
Passports: Though it’s not legally required, it’s helpful to keep your passport address current for identification purposes.
Health Insurance and Medical Records: Transfer your medical records and update your health insurance to avoid gaps in coverage.
Additional Legal Steps When Relocating Interstate
Beyond the basics, there are a few more legal steps when relocating interstate that often get overlooked:
Firearm Registration: If you own firearms, be sure to understand your new state’s laws, as some states have stricter registration requirements than others.
Pet Registration: Some states or cities require pet licenses, and you might need to provide proof of vaccinations.
Professional Licensing: If you are a licensed professional (like a teacher, nurse, or attorney), check if your new state has reciprocity agreements.
