Is it cheaper to live in Oregon or Washington?

[Question]

I'm interested in the difference in the cost of living between Oregon and Washington.

Washington has no state income taxes and Oregon has no sales tax. I think the price of gas is a little cheaper in Washington because in Oregon they don't allow self-service pumps and the extra cost is passed along - but I could be wrong there. I don't know what the property tax differences might be in each state.

Just curious to know if it would be cheaper to live in Vancouver, WA and do my shopping in Oregon, or just live in Oregon and not sweat it.

Anyone with some ruminations they want to share?

[PacificNW]

I think Oregon property taxes are higher. I say if you are going to shop in Oregon, the majority of the time, you probably should stay in Oregon. I know there are people out there trying to change the tax structure in Oregon (and Washington). Many want a small sales tax if it means that the property tax will be lowered.. Most Oregonians hate the thought of a sales tax but times are changing. Plus, the commute from Washington to Oregon to shop will raise your overall transit costs.

I am one of those narrow minded types who believe if you are employed in Oregon you should live in Oregon and become part of the solution...not one of those types who live in Clark county and work in Oregon to escape the higher costs of living in Oregon...

[MarkDaMan]

If you work in Oregon and live in Washington, you still have to pay Oregon income tax.

The gas is actually cheaper in Portland than Vancouver most of the time. Washington has higher gas taxes so the pump gas yourself thing doesn't actually give you a price break.

Housing in Vancouver is similiar to outer suburbs in Portland...overall it is pretty much a wash.

[Drew-Ski]

Here are the facts according to Census Bureau.


Oregon Ranks 41st in Taxes per Capita

Oregon ranked near the bottom of the pack in the amount of per-capita taxes its residents paid last year, according to a study by the U.S. Census Bureau.

Oregonians paid $1,791.45 per person in state taxes last year, placing the state at No. 41 among the 50 states.

Oregon ranked No. 40 in 2004, with per capita taxes of $1,699.55 paid by residents.
The biggest tax bite on state residents in 2005 was the individual income tax, at $1,290.58 per capita. Property taxes were $6.71 per capita. In fact, more was spent on hunting and fishing licenses, with $11.21 per capita. Property taxes collected totaled about $24 million and hunting and fishing licenses brought in about $41 million.

Oregon government collected $6.5 billion in state taxes in 2005, ranking Oregon No. 30 among the 50 states in terms of total tax revenue, according to the Census Bureau.

Washington ranked No. 17 in taxes per capita, with residents paying $2,359.99 per person in taxes. Total state tax per capita was highest in Vermont, with residents paying $3,600.16. It was lowest in South Dakota, where residents paid state taxes of $1,430.46.

[PacificNW]

Thanks, Drew....but I think people in Washington have a lower property tax burden than Oregonians. Any actual info out there? I will google..

[PacificNW]

I was wrong....hehe!

[SpongeG]

I always wondered this too

thx for asking

[Question]

From that chart it looks as if California has lower property taxes than Oregon and Washington. How can that be? The title property tax "collections" is possibly misleading. I don't think the chart settles the question. What is the property tax rate in each state and how is it calculated?

From the responses it really does appear to be a wash.

[rsbear]

I own a condo in So Cal valued at $650,000 and my property taxes are $7,700 per year. There's no way that number for California is correct. And I'm not bragging here - my place may sound expensive but its nothing considering 1,100 square foot craftsman bungalows on the Westside go for well over $1,000,000 and horrible, aweful, ugly 1950's 1,200 square-foot ranch-style houses in bad neighborhoods (so bad there is no comprable neighborhood in Portland to compare) go for at least $500,000.

[Question]

OREGON
Sales Taxes
State Sales Tax: None
Gasoline Tax: * 24.9 cents/gallon
Diesel Fuel Tax: * 24.3 cents/gallon
(Local fuel taxes may add 1 to 3 cents)
Cigarette Tax: $1.18/pack of 20

Personal Income Taxes
Tax Rate Range: Low - 5%; High - 9%
Income Brackets: ** Lowest - $2,750; Highest - $6,851
Number of Brackets: 3
Personal Tax Credits: Single - $154; Married - $308; Dependents - $154
Additional Credits: Credit equal to 40% of federal credit
Standard Deduction: Single - $1,840; Married filing jointly - $3,685; Deduction greater if age 65 or older.
Additional Deduction: Single over 65 - $1,200; Married over 65 filing jointly $2,000
Medical/Dental Deduction: Full only for age 59 or older, if itemized.
Federal Income Tax Deduction: $5,000 ($2,500 if married filing separately)
Retirement Income Taxes: Federal income tax rules generally determine the amount of your pension that is taxed by Oregon. However, you may subract some pensions on your Oregon return that were taxed on your federal return. Pensions not taxed are Social Security benefits, Veterans Administration benefits and Railroad Board benefits. Oregon allows a subtraction for part or all of the payments you receive from the federal pension system. Generally, retirement income is subject to Oregon tax. A tax credit of up to 9% of taxable pension income is available to recipients of pension income, including most private pension income, whose household income was less than $22,5000 (single) and $45,000 (joint), and who received less than $7,500/$15,000 in Social Security or Railroad Retirement benefits. The credit is the lesser of tax liability or 9% of taxable pension income. For more information on the Oregon retirement income credit, click here.

Retired Military Pay: Federal retirees, including military personnel, may be able to subtract some or all of their federal pension income. This includes benefits paid to the retiree or to the surviving spouse. The subtraction amount is based on the number of months of federal service before and after October 1, 1991. Retirees can subtract their entire federal pension if all the months of federal service occurred before October 1, 1991. If there are no months of service before October 1, 1991, retirees cannot subtract any federal pension. If service included months before and after October 1, 1991, retirees can subtract a percentage of their pension income.
Military Disability Retired Pay: Disability Portion - Length of Service Pay; Member on September 24, 1975 - No tax; Not Member on September 24, 1975 - Taxed, unless combat incurred. Retired Pay - Based solely on disability: Member on September 24, 1975 - No tax; Not Member on September 24, 1975 - Taxed, unless all pay based on disability and disability resulted from armed conflict, extra-hazardous service, simulated war, or an instrumentality of war.
VA Disability Dependency and Indemnity Compensation: Not subject to federal or state taxes
Military SBP/SSBP/RCSBP/RSFPP: Generally subject to state taxes for those states with income tax. Check with state department of revenue office.

Property Taxes
Oregon does not grant homeowners a homestead exemption. Tax rates are set by the counties and any special considerations are levied by county officials. Homeowners 62 or older may delay paying property taxes based on certain income criteria. The state offers a Disabled Citizen Property Tax Deferral Program and a Senior Citizen Property Tax Deferral Program. Both deferral programs allow qualified taxpayers to defer payment of their property taxes on their homes. The state pays the taxes to the county, maintains the account, and charges 6% simple interest, which also is deferred. Taxes are owed when the taxpayer receiving the deferral dies, sells the property, ceases to live permanently on the property, or the property changes ownership.

To qualify for either program, the taxpayer must live on the property and have a total household income of less than $36,500 for the year before application. Participants may remain on either program as long as their federal adjusted gross income does not exceed that amount. If a participant's income exceeds the $36,500 limit, part of the taxes still may be deferred. Participants can come in and out of the programs if their income changes. In addition to meeting the income limitation and property ownership requirement, disabled persons must be receiving or be eligible to receive federal Social Security Disability benefits to qualify. Residents must be 62 years old or older to qualify for the Senior Citizen Property Tax Deferral Program. Call 800-356-4222 or 503-376-4988 for details or click here.

Inheritance and Estate Taxes
An Oregon inheritance tax return is required to be filed whenever a federal estate tax return (Form 706) is required to be filed. For a resident decedent, Oregon taxes real property and tangible personal property located in Oregon and intangible personal property wherever it is located. For a nonresident decedent, Oregon taxes real property, tangible personal property, and intangible personal property located in Oregon. An exemption is allowed for intangible personal property located in Oregon if a like exemption is allowed by the state of residence.

For further information, visit the Oregon Department of Revenue site or call 503-378-4988.

* Tax rates to do not include local option taxes of 1 to 2 cents.
** For joint returns, the taxes are twice the tax imposed on half the income.
Note: Oregon has a statutory provision for automatic adjustment of tax brackets, personal exemption or standard deductions to the rate of inflation.

[Question]

WASHINGTON
Sales Taxes
State Sales Tax: 6.5% (food and prescription drugs exempt) Local taxes may increase total tax to 8.9%. Tax is 6.8% on sales and leases of motor vehicles.
Gasoline Tax: 34 cents/gallon
Diesel Fuel Tax: 34 cents/gallon
Cigarette Tax: $2.03/pack of 20

Personal Income Taxes
No state personal income tax
Retirement Income: Not taxed.

Property Taxes
Property taxes account for about 30% of Washington's total state and local taxes. Properties are appraised at 100% of fair market value. A property tax exemption program is available for persons age 61 or older, or persons unable to work due to a physical disability. The property, which can include up to an acre of land, must be owner/buyer occupied. The state offers a property tax exemption program for those whose household income does not exceed $35,000. If your income is between $35,000 and $40,000, you may qualify for the tax deferral program. If your annual income for the application year does not exceed $35,000 your home will be exempt from all excess and special levies approved by voters. If your household income is between $25,001 and $30,000, you are exempt from regular levies on $50,000 or 35% of the assessed value, whichever is greater (but not more than 70,000 of the assessed value.

The state's tax deferral program works in conjunction with the exemption program. A senior citizen or disabled person may defer property taxes or special assessments on their residence if they meet certain age, disability, ownership, occupancy and income requirements. The state pays the taxes on behalf of the claimant and files a lien on the property to indicate the state has an interest in the property. The deferred taxes must be repaid to the state plus 5% interest when the owner dies, sells or moves from the home, or doesn't have sufficient equity in the property. Qualified people may participate in both or one of these programs.

For more details on property taxes, click here or call 800-647-7706.

Inheritance and Estate Taxes
Washington replaced the inheritance tax in 1982 with an estate tax. A new Washington estate tax took effect May 17, 2005. Estates of decedents who die on or after May 17th are subject to the estate tax. This is a stand-alone tax that incorporates some provisions of the Internal Revenue Code as of January 1, 2005. However, the Washington estate tax is not affected by the termination of the federal estate tax in 2010. The new law allows an exemption of $1.5 million for decedents dying in 2005 and $2 million for decedents dying on or after January 1, 2006. These exemptions match the estate tax exemptions under the federal estate tax law for 2005, 2006, 2007 and 2008. The exemption increases to $3.5 million in 2009. The estate tax rates start at 10% on values in excess of $1.5 million and increase gradually to 19% on amounts in excess of $9 million.

For further information, visit the Washington Department of Revenue site or call 800-647-7706.

[Dr Nevergold]

I get the idea that regardless of the marginal differences in taxation that Washington is a bit more expensive because Seattle is a far higher priced city than Portland on the whole. Whether that remains the same is to be seen.

[arbeiter]

Originally Posted by heckles

I get the idea that regardless of the marginal differences in taxation that Washington is a bit more expensive because Seattle is a far higher priced city than Portland on the whole. Whether that remains the same is to be seen.

But within Seattle, there is a lot of wiggle room - it's a lot easier to find a cheap place in Portland downtown, near downtown, or wherever you want - but you can also find very cheap places in Seattle (just harder to find them right near the CBD). Also, wages do tend to be higher - I know you think it only applies to people who work at microsoft, but my coworker who transferred here from portland got a pay differential and it was significant.

[urbanlife]

Originally Posted by arbeiter

But within Seattle, there is a lot of wiggle room - it's a lot easier to find a cheap place in Portland downtown, near downtown, or wherever you want - but you can also find very cheap places in Seattle (just harder to find them right near the CBD). Also, wages do tend to be higher - I know you think it only applies to people who work at microsoft, but my coworker who transferred here from portland got a pay differential and it was significant.

It is the reason why I love the Northwest, I can live in Seattle or Portland and not have it be much of a difference after you figure out pay and cost of living. At least when talking about the kind of work I do and will be doing.