The Tax Brief real effective rates for 111+ countries β€” bi-weekly, free.
HEAD-TO-HEAD TAX COMPARISON Β· 2026

COUNTRY A Minnesota VS COUNTRY B Oregon

Side-by-side analysis of income tax, effective rates, and take-home pay for Minnesota and Oregon in 2026.

OVERVIEW
Both Minnesota and Oregon are known for high income tax rates, but Minnesota comes out cheaper at every income level tested β€” $2,899/year less at $100,000, growing to $5,407/year at $500,000. The difference comes down to bracket thresholds: Oregon's near-top 8.75% rate starts at just $11,400, while Minnesota's equivalent bracket doesn't apply until much higher income. Oregon's compensation is no sales tax at all and a lower property tax (0.81% vs Minnesota's 1.00%).
Section 01

The Big Picture

Top-line rates and effective take-home for a typical earner β€” including income tax, social contributions, and applicable surcharges.

🌊
COUNTRY A
Minnesota
TAX RATE
5.35-9.85%
Progressive, 4 Brackets

9.85% top rate β€” third-highest nationally, applying above $203,150

🌲
COUNTRY B
Oregon
TAX RATE
4.75-9.9%
Progressive, No Sales Tax

9.9% top rate kicks in above $125,000 β€” one of the highest effective burdens in the US

TYPICAL ANNUAL DIFFERENCE
Moving from Oregon β†’ Minnesota at $100,000
$2,899

That's $242/month back in your pocket

Section 02

Tax Savings by Income Level

Net take-home after all income tax, social contributions, and surcharges β€” for a single employee with no dependents.

GROSS INCOME
🌊 MN TAX
🌲 OR TAX
SAVINGS
10-YEAR
$50,000
$1,877
$3,801
$1,924
$19,240
$100,000
$5,277
$8,176
$2,899
$28,990
$200,000
$12,867
$17,755
$4,888
$48,880
$500,000
$42,048
$47,455
$5,407
$54,070
πŸ’‘

CountryTaxCalc.com is reader-supported. When you use our partner links, we may earn a commission at no cost to you. This helps us provide free tax calculators and comparison tools. Learn more about our affiliate partnerships

Talk to a Real CPA

Taxhub

β˜… 4.8 verified reviews  Β·  3,758 reviews

Moving between states means a complex multi-state tax return. Taxhub matches you with a real CPA via video call β€” average cost $325. Rated 4.8β˜… by 3,700+ clients.

⚠ Not for simple single-state returns. Free filing is fine for straightforward W-2 situations.

Get Matched With a CPA β†’
🌊

Minnesota Pros & Cons

+ PROS
  • Lower income tax than Oregon at every income level tested, from $50,000 to $500,000
  • Strong corporate HQ cluster (Target, Best Buy, 3M, UnitedHealth) and Mayo Clinic healthcare access
  • 9.85% top rate doesn't apply until $203,150 β€” much higher than Oregon's $125,000 threshold for its top rate
βˆ’ CONS
  • Property tax slightly higher than Oregon's: 1.00% vs 0.81%
  • 6.875% state sales tax plus local additions, versus zero in Oregon
  • 9.85% top rate is the third-highest in the nation
  • Partially taxes Social Security above $75,000 AGI (single) / $100,000 (MFJ)
🌲

Oregon Pros & Cons

+ PROS
  • No sales tax at all β€” a real advantage for households with high taxable spending
  • Lower property tax than Minnesota: 0.81% vs 1.00%
  • Unique federal tax subtraction: deduct up to $7,050 (single) of federal taxes paid from Oregon taxable income
βˆ’ CONS
  • Income tax is $2,899/year higher than Minnesota at $100,000, growing to $5,407/year at $500,000
  • 8.75% bracket starts at just $11,400 of taxable income β€” bites much earlier than Minnesota's comparable bracket
  • 9.9% top rate is marginally the higher of the two, and applies starting at a much lower income ($125,000 vs Minnesota's $203,150)
FAQ

Frequently Asked Questions

Is Minnesota or Oregon better for taxes?

Minnesota has the lower income tax bill at every level checked, despite both states being known for high income taxes β€” $2,899/year less at $100,000, growing to $5,407/year at $500,000. Oregon's real advantages are no sales tax and a lower property tax (0.81% vs Minnesota's 1.00%), but these don't close the income tax gap for most households.

Both Minnesota and Oregon are known as high-tax states β€” which one actually costs more?

Oregon costs more at every income level, because its bracket structure front-loads a near-top rate: the 8.75% bracket starts at just $11,400 of taxable income. Minnesota's top 9.85% rate is technically higher than Oregon's marginal rates below $125,000, but it doesn't apply until $203,150 of income, so most Minnesota taxpayers pay a lower effective rate than their Oregon counterparts.

How do Minnesota and Oregon property taxes compare?

Minnesota's average effective property tax rate is approximately 1.00%, slightly above Oregon's 0.81%. On a $400,000 home, that's about $760/year more in Minnesota β€” a modest offset to Minnesota's larger income tax savings.

Does Oregon's lack of sales tax make up for its higher income tax versus Minnesota?

Not fully. A household spending $30,000/year on taxable goods saves roughly $2,060 in Minnesota sales tax (6.875% plus local additions) by living in Oregon. That's meaningful but still short of the $2,899/year income tax gap at $100,000 income.