Oregon vs Washington: Which State Keeps More Money in Your Pocket?
VSDetailed comparison of tax rates, cost of living, and quality of life
📌 At the $85,000 level, Oregon's 9.90% versus Washington's no income tax produces approximately $8,415 variance yearly. Washington draws residents through no income tax. lifestyle seekers populations cluster in Washington for tax reasons; outdoor lovers concentrate in Oregon for no income tax.
Between Oregon's 9.90% and Washington's no income tax, the tax differential hits around $8,415 yearly at $85,000. That's real money in anyone's book, even if the decision ultimately comes down to more than just tax policy.
🔑 Key Differences
- **State income tax**: Oregon at 9.90% vs Washington at no income tax
- **Annual savings** (on $85,000): Washington saves you ~$8,415
- **Tax system**: Both use progressive brackets
- **Deductions**: Standard federal deductions apply, state variations exist
- **Local taxes**: Check your specific county/city as rates vary within states
Tax Comparison
| Tax Type | Oregon | Washington |
|---|---|---|
| State Income Tax | 4.75% - 9.9% | No Income Tax Winner |
| 💰 On $40,000 Salary |
State Tax: $2,930
Take Home: $37,070
|
State Tax: $0
Take Home: $40,000
+$2,930
|
| 💰 On $60,000 Salary |
State Tax: $4,395
Take Home: $55,605
|
State Tax: $0
Take Home: $60,000
+$4,395
|
| 💰 On $100,000 Salary |
State Tax: $7,325
Take Home: $92,675
|
State Tax: $0
Take Home: $100,000
+$7,325
|
| Cost of Living | Oregon costs vary significantly by region. Portland housing has appreciated substantially - median prices often exceed $500,000 in desirable areas. Eugene offers better value. Bend commands premium pricing given outdoor recreation appeal. Rural Oregon provides genuine affordability. Property taxes stay moderate. No sales tax delivers meaningful savings - no tax on groceries, clothing, electronics, or any retail purchases. Healthcare costs run high. Overall, Portland requires substantial income for comfortable living while smaller cities remain more accessible. | Washington costs split dramatically. Seattle metro ranks among America's most expensive - median home prices often exceed $700,000-800,000 in desirable areas. Monthly rent for decent apartments runs $2,000-3,000. Sales tax reaches 10% in Seattle. Spokane and Eastern Washington offer substantially better value. Property taxes significant. The no-income-tax advantage creates benefit, though Seattle housing costs require six-figure incomes for comfortable family living. |
Pros & Cons
Oregon
✓ Advantages
- No sales tax saves money on purchases
- Beautiful natural scenery and outdoor recreation
- Strong technology and manufacturing sectors
- Portland offers urban culture and amenities
- Good quality of life
⚠ Considerations
- High state income tax (up to 9.9%)
- High cost of living especially in Portland
- Rainy weather much of the year
- Property taxes substantial
- Housing costs risen significantly
Washington
✓ Advantages
- No state income tax provides major advantage
- Strong technology and aerospace sectors
- Beautiful natural scenery and outdoor recreation
- No state estate or inheritance tax
- High minimum wage in many cities
⚠ Considerations
- Very high cost of living in Seattle area
- High sales tax (often 10%+ in Seattle)
- Rainy weather for much of the year
- Traffic congestion severe in metro areas
- Property taxes offset lack of income tax
Bottom Line
Bottom line: Washington saves you about $8,415 annually at $85,000 on taxes alone. Oregon maintains appeal through no income tax, attracting people willing to pay more for what it offers. The choice often comes down to {factor} versus direct financial savings.📢 Share This Comparison
Help others make informed decisions about their paycheck