If you live and work in Washington, you pay sales tax, but not state income tax. If you live in Washington and work in Oregon, you must file a non-resident Oregon tax return and Oregon taxes a portion of your income. People who live and work in Washington don't pay income taxes. But what about everyone who lives in Washington and now works from home for an Oregon company? According to tax experts, they could get a big increase in their tax refund.
A very large percentage of the people on the Washington side work in Oregon. They Pay Both Oregon Income Tax AND Sales Tax Most Washington State residents don't know how much sales tax they will need to pay for goods and certain services purchased and purchased without paying them. Which means that if you lived and paid taxes in Washington State, but did all your shopping in Oregon, you could save yourself a huge tax break by simply traveling between the two states. Of course, if you LIVE in Washington, you must file a form with the Washington State Department of Revenue detailing your purchases in Oregon and paying the required sales tax.
However, if you live or work in Washington and owe federal income tax returns due to Oregon State income taxes, your Oregon State income tax will be deductible. Employees in Washington don't pay income tax on their earnings, and people in Oregon don't pay income taxes on their income while they're employed there. Not surprisingly to anyone who drives the two bridges across the Columbia River during rush hour, four out of five of these non-resident workers come from southwest Washington. Therefore, anyone living in Washington can work from their job in Oregon while earning income taxes from their state.
The relevant travel topic for potential Washingtonians who would work in Portland are the interstate bridges that cross the river between Portland and Vancouver. All interest, rent, dividend, capital gains, or other income derived from business in Washington is exempt from these taxes. If you live or work in Oregon or Washington, you won't get any tax benefits because you're charged the same federal income tax. I lived in two of the highest-taxed states in the country so I could cover people who don't work for a living.
Anyway, by the time the tax money goes to Washington and returns to the local community, it's probably 10 cents on the dollar, so it's also very inefficient. I have worked in Washington for 10 years and moved back and forth between Oregon and Washington several times (usually for 2 years each) and both have great advantages and disadvantages. The difference in home price in the states of Oregon and Washington allows taxes to be reduced when moving within both states. Perhaps high income tax, high property taxes, or regulations are making producers prefer to do business in Washington, resulting in a higher equilibrium price in Portland.
Of course, Washington was even part of the former Oregon territory, so these two states are really very close brothers.