Washington has 0% state income tax while Oregon reaches 9% at $100,000 income—but the comparison is more complex than headlines suggest. A $100,000 earner pays $8,440 Oregon income tax vs $0 in Washington. However, Washington has 6.5% sales tax (up to 10.4% with local taxes) while Oregon has 0% sales tax. Property taxes are nearly identical (0.90% OR vs 0.94% WA). The Portland-Vancouver border creates unique shopping dynamics—many Vancouver, WA residents cross to Oregon for big purchases to avoid sales tax. Washington also has a 7% capital gains tax on gains over $262,000 (2026). For high earners ($150K+), Washington wins decisively. For modest earners who spend most income on taxable goods, the sales tax partially offsets income tax savings.

By CountryTaxCalc Research Team

Last Updated: March 2026

The Big Picture

🌲 Oregon

9.9%

Top Rate

4 brackets from 4.75% to 9.9%

🏔️ Washington

0%

No Income Tax

No income tax (7% capital gains tax on high earners)

Typical Annual Savings

At $100,000 income:

$5,247

That is $437/month back in your pocket!

Tax Savings by Income Level

IncomeOR TaxWA TaxSavings10-Year
$50,000 $2,838$0$2,838$28,380
$75,000 $4,543$0$4,543$45,430
$100,000 $5,247$0$5,247$52,470
$150,000 $10,197$0$10,197$101,970
$250,000 $20,097$0$20,097$200,970
$500,000 $44,847$0$44,847$448,470

Oregon Pros and Cons

✅ Pros

  • No sales tax (saves on purchases)
  • Lower housing costs than Seattle
  • Strong environmental protections
  • No tax on Social Security

❌ Cons

  • High income tax (up to 9.9%)
  • Portland Metro transit tax adds 0.88%
  • Multnomah County adds more local taxes
  • One of highest state income taxes

Washington Pros and Cons

✅ Pros

  • 0% state income tax
  • Strong job market (Amazon, Microsoft)
  • No tax on retirement income
  • Higher average wages than OR

❌ Cons

  • High sales tax (6.5% + local = ~10%)
  • 7% capital gains tax over $270K
  • Very high housing costs (Seattle)
  • Proposed millionaire's tax (2028)
💡

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Frequently Asked Questions

Q: How much will I save moving from Oregon to Washington?

At $100,000 income, you save $5,247 per year in state income tax. However, Washington has sales tax (~10% combined) while Oregon has 0%. If you spend $50,000/year on taxable goods, you'd pay ~$5,000 in WA sales tax. High earners save more; modest earners may break even.

Q: Can I live in Washington and work in Oregon?

Yes, but Oregon will tax your Oregon-sourced income. Washington residents working in Oregon pay Oregon income tax on those wages. However, you'd avoid Oregon tax on investment income, retirement income, and any remote work done from Washington. Living in Vancouver, WA and working in Portland is common but you still pay OR income tax on wages.

Q: What is Washington's capital gains tax?

Washington levies a 7% tax on long-term capital gains exceeding $270,000 annually (9.9% over $1M starting 2025). It exempts real estate, retirement accounts, and certain small business sales. Oregon has no special capital gains rate—gains are taxed as regular income up to 9.9%.

Q: What about the proposed Washington income tax?

In March 2026, Washington passed SB 6346 creating a 9.9% tax on income over $1 million, effective 2028. It faces legal challenges since prior court rulings found income taxes unconstitutional. For now, most residents still pay 0% income tax.

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