Texas Taxin'

Tax Burden by State

WA state is rated as having a higher tax burden than OR. That’s probably true for the average person but, as the saying goes, “It all depends.”

Here in OR, the tax rate is 9% of taxable income starting above the very low joint income of $17,800. And the max income tax rate of 9.9% kicks in at $250,000 for a couple. There is no sales tax.

Just across the river in WA, there is a high sales tax of between 7% and 10.5%, depending on where you live. But there is no income tax. Property taxes are pretty close.

So a frugal professional couple will have a much higher tax burden in OR. If we hadn’t had to be in OR for the wife’s work when we chose to move to the PNW, Vancouver across the river from Portland would have been the no-brainer choice.

–fleg

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