Compare taxes and see how much you save moving from Washington to Oregon
Washington has 0% state income tax while Oregon reaches 9.9% at the top bracket—saving a $100,000 earner $5,247 per year. However, the comparison is more nuanced than it appears. Washington levies 6.5% sales tax (up to 10.4% with local taxes) while Oregon has 0% sales tax. Property taxes are nearly identical (0.94% WA vs 0.90% OR). The Portland-Vancouver border creates unique tax arbitrage opportunities—many Vancouver, WA residents shop in Oregon for big purchases to avoid sales tax while maintaining their WA residency to avoid income tax. Washington also has a 7% capital gains tax on gains over $262,000 (2026). For high earners ($150K+), Washington is the clear winner. For modest earners who spend most income on taxable goods, the sales tax can partially offset income tax savings.
No Income Tax
No income tax (7% capital gains tax on high earners)
Top Rate
4 brackets from 4.75% to 9.9%
At $100,000 income:
That is $437/month back in your pocket!
| Income | WA Tax | OR Tax | Savings | 10-Year |
|---|---|---|---|---|
| $50,000 | $0 | $2,838 | $2,838 | $28,380 |
| $75,000 | $0 | $4,543 | $4,543 | $45,430 |
| $100,000 | $0 | $5,247 | $5,247 | $52,470 |
| $150,000 | $0 | $10,197 | $10,197 | $101,970 |
| $250,000 | $0 | $20,097 | $20,097 | $200,970 |
| $500,000 | $0 | $44,847 | $44,847 | $448,470 |
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Moving from Washington to Oregon? Multi-state returns are tricky—partial-year residency, different deadlines, avoiding double taxation. Get matched with a CPA who specializes in state moves. Virtual meetings, fixed pricing.
Get Matched With a CPA →At $100,000 income, you save $5,247 per year in state income tax by living in Washington. However, Washington has ~10% combined sales tax while Oregon has 0%. If you spend $50,000/year on taxable goods, you'd pay ~$5,000 in WA sales tax, nearly offsetting the income tax savings. High earners ($150K+) save significantly more; modest earners may see smaller net savings after accounting for sales tax.
Yes, but Oregon will tax your Oregon-sourced income. Washington residents working in Oregon must pay Oregon income tax on those wages under the convenience of the employer rule. However, you'd avoid Oregon tax on investment income, retirement income, and any remote work performed from Washington. Living in Vancouver, WA and commuting to Portland is a popular strategy, though you still pay OR income tax on wages earned in Oregon.
This is legal and common along the Portland-Vancouver border. Vancouver, WA residents can live in a 0% income tax state while making major purchases in Oregon to avoid sales tax. Many furniture stores, car dealerships, and electronics retailers on the Oregon side of the border cater to this strategy. You'll still pay OR income tax if you work in Oregon, but you can optimize spending by shopping tax-free across the river.
Washington levies a 7% tax on long-term capital gains exceeding $262,000 annually (2026 threshold). 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%. For high capital gains, Washington's 7% flat rate beats Oregon's 9.9% top rate.
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 under WA state law. For now, most residents still pay 0% income tax, but high earners should monitor this legislation.
Washington is generally better for retirees with significant retirement income since it has 0% income tax on Social Security, pensions, and IRA distributions. Oregon taxes all retirement income up to 9.9%. However, Oregon has no sales tax, which benefits retirees who spend heavily. For retirees with over $75K annual income, Washington typically wins.
Property taxes are nearly identical: Washington averages 0.94% while Oregon averages 0.90%. However, home values in the Seattle metro area are significantly higher than Portland, meaning you may pay more absolute dollars in WA property tax despite the similar rate. Rural areas in both states have comparable property tax burdens.
Generally no, if you're performing the work physically in Washington. Oregon cannot tax income for work performed outside Oregon's borders. However, if you occasionally travel to Oregon for work, that portion is taxable in Oregon. Keep good records of where you work each day if this applies to you.
Washington is typically better for small business owners due to 0% income tax on business profits. Oregon taxes business income up to 9.9%. However, Washington has a Business & Occupation (B&O) tax on gross receipts (rates vary by industry, typically 0.15-1.5%), which can hurt low-margin businesses. Oregon has no B&O tax but does have income tax on profits.
For a $100K earner paying $5,247 OR income tax, you'd need to spend about $52,000 on taxable goods in Washington (at 10% combined rate) to pay equivalent sales tax. Most people spend 40-60% of income on taxable goods, so high earners ($150K+) almost always save in WA, while earners under $60K may see smaller savings or break even.