TAXES in Washington vs Oregon 2026

About this video

• Video Title: TAXES in Washington vs Oregon 2026
• Channel: Living in Vancouver & Camas Washington
• Speakers: Hannah Dubine
• Duration: 00:15:56

Overview

This video provides a comprehensive comparison of taxes in Washington state and Oregon, focusing on the differences relevant to residents of Clark County, Washington, and the Portland metro area. The presenter, Hannah Dubine, details various taxes including state income tax, sales tax, property tax, excise tax, gas tax, estate tax, capital gains tax, B&O tax, and arts/daycare tax, highlighting key distinctions and providing examples to help viewers make informed decisions about where to live.

Key takeaways

• No State Income Tax in Washington: Washington state does not have a state income tax, while Oregon has a progressive income tax system with rates ranging from 4.75% to 9.9%.
• Sales Tax Disparity: Washington has a sales tax that varies by location (currently 7.8% to 8.8% in Clark County), while Oregon has no sales tax.
• Property Tax Differences: Property taxes in Washington's Clark County are based on assessed value, typically around 1% annually, with less regional variation. Oregon property taxes can have wider swings depending on the specific area within the Portland metro.
• Excise Tax on Property Sales in Washington: Washington imposes an excise tax on property sales, which can be substantial (e.g., over $13,000 on an $800,000 sale), whereas Oregon generally does not have a state-level excise tax for home sales.
• Estate Tax Variations: Washington has a higher estate tax exemption ($3 million) but much steeper rates (10-35%) compared to Oregon's lower exemption ($1 million) and rates (10-16%).
• Capital Gains Tax: Washington has a state-level capital gains tax on long-term gains (excluding real estate for now), while Oregon taxes capital gains as ordinary income.
• B&O Tax in Washington: Washington has a Business and Occupation (B&O) tax on gross receipts, affecting businesses and 1099 contractors, with tiered rates. Oregon does not have a B&O tax but has a net profit tax for C-corps.
• Arts & Daycare Tax in Oregon: Oregon has a specific progressive income tax (Measure 26-214) for arts and daycare services, which is a significant factor for some residents considering moving to Washington.