Oregon vs Washington taxes

Where the difference comes from

Almost all of it is Oregon’s income tax. Oregon’s rates start at 4.75% and reach 8.75% at a modest income, and it has no sales tax to lean on instead. On $75,000 a single filer pays $5,055 in Oregon income tax, after the standard deduction, the subtraction for federal tax Oregon allows, and its personal exemption credit.

Payroll deductions run the other way. Washington takes more from payroll than Oregon does: paid family and medical leave plus the WA Cares long-term care premium, which is 0.58% of every dollar with no cap. They total $1,040 on $75,000. Oregon’s two payroll lines, Paid Leave Oregon and the 0.1% statewide transit tax, come to $525.

Net of both, a single filer keeps $4,539 more a year in Washington on $75,000. The effective rate on the whole salary, federal taxes included, is 25.3% in Oregon and 19.3% in Washington.

The gap at higher salaries

The gap widens with income: $2,861 on $50,000, $11,775 on $150,000 and $21,123 on $250,000. Two things drive it. Oregon’s top rate of 9.9% applies from $125,000 of taxable income, and the subtraction for federal tax, worth up to $8,750, shrinks step by step between $125,000 and $145,000 of income for a single filer and is gone above that.

In Washington, WA Cares is uncapped and keeps growing with the salary. Paid family leave stops at the Social Security wage cap. Neither comes close to Oregon’s income tax at any salary.

Living on one side and working on the other

Portland and Vancouver sit across one river, and plenty of people live in one state and work in the other. Oregon’s income tax follows the work, not the home. The Oregon Department of Revenue puts it plainly: if you do not live in Oregon, you pay tax on the wages from your job for the work you do inside Oregon. A Vancouver resident commuting to a Portland office pays Oregon income tax on those wages.

The saving from living in Washington therefore comes mainly from working there, or from working from home there. Days worked from a home office in Washington are not Oregon wages.

The reverse commute is simpler. An Oregon resident working in Washington owes Oregon income tax on all of their income as a resident, and Washington has no income tax to credit against it.

What the take-home figure does not count

Oregon has no general sales tax, and Washington relies on one. That is why the Portland-Vancouver border works the way it does: people live and shop where it suits them. This comparison covers what is taken from wages only, not what you pay when you spend them. Portland-area residents may also owe the two local income taxes described on the Oregon calculator page, which are not included here.

Questions people ask

Do you take home more in Oregon or Washington on $75,000?

Washington, by $4,539 a year, or $378 a month, for a single filer in 2026. That counts federal tax, Social Security, Medicare, state income tax and every state payroll deduction.

Is the difference the same at every salary?

No, but the same side stays ahead. The gap is $1,458 a year at $30,000 and $21,123 at $250,000, for a single filer.

I live in Vancouver, Washington, and work in Portland. Do I pay Oregon income tax?

Yes, on the wages for work you do in Oregon. The Oregon Department of Revenue says a nonresident pays tax on the wages from their job for work done inside Oregon, and files Form OR-40-N. Days you work from home in Washington are not Oregon wages. Living in Washington does not by itself take a Portland salary out of Oregon's income tax.

Does Washington really have no income tax?

Washington levies no tax on wages. It does tax large capital gains, which does not touch a salary. Employees still pay two state premiums through payroll, paid family and medical leave and WA Cares, the long-term care program.

What are the Portland-area taxes?

Two local income taxes apply on top of Oregon's in parts of the Portland area: the Metro Supportive Housing Services tax and Multnomah County's Preschool for All tax. Both start only at higher incomes, and neither is included in this comparison. The Oregon calculator page explains both.

What this comparison covers

Income tax and payroll deductions on wages: federal income tax, Social Security, Medicare, state income tax, every state payroll deduction. It does not compare sales tax, property tax, housing or the cost of living, which can outweigh the difference in take-home pay. Figures assume the standard deduction, no dependents and no pre-tax retirement contributions. See how we calculate.