Washington has high state sales taxes, but no income taxes. It's a Pacific Northwest tax experiment, and one with a clear revenue winner. But the biggest winner is Idaho, the only state in the Pacific Northwest with income taxes and sales taxes. Washington residents, on the other hand, while they pay sales taxes, they don't pay income taxes and house prices are much lower than their Oregon neighbors.
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. Income taxes are another consideration when deciding whether to buy a home in Washington or Oregon. And there is a clear difference here. Washington is one of the seven states in the country that do not charge income taxes.
Oregon, on the other hand, does collect income tax from its residents. However, Oregon does not charge a sales tax on purchased goods, while Washington has a sales tax of up to 10%. According to this chart, median income New Hampshire taxpayers pay 14.1% of their income in state and local taxes. Massachusetts taxpayers with the same median income pay less than 11.8%.
Taxes are likely to occupy more than the median income of a household in New Hampshire because it does not have a state income tax on graduated salaries by income. Instead, it depends more on property taxes, which are not based on taxpayer income. 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. So, if you're a middle-income person, you'll pay a smaller portion of your income in state and local taxes in Massachusetts than in New Hampshire.
As for unemployment insurance, you pay and pay the system through a tax deduction and if you lose your job, sue through no fault of your own, you will receive cents on the dollar compared to what you invest. 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. I'm not sure that the lack of sales tax is actually resulting in lower costs for consumers, unfortunately. You're supposed to file the use tax on your tax return every year for Amazon purchases and other online purchases, but no one ever does, let alone the fact that most people don't do their own taxes due to how complicated it is to complete them, so I highly doubt that this is a factor to consider.
Although Oregon has one of the highest income tax rates in the country, the state currently does not have sales taxes. Those looking to buy a new home have many amazing places to choose from in the region, including Washington and Oregon. With a maximum rate of 9.9 percent, Oregon's personal income tax is one of the highest in the nation and a frequent source of frustration for people who live on the north side of the Columbia River but work in the south. A simple way to classify state tax burdens is by the percentage of all state residents' total income that goes to state and local taxes.
If buying a home in Washington State or Oregon is on your agenda this year, you'll need a mortgage to finance this big purchase, and Sammamish Mortgage can help. Meanwhile, Washington residents get some benefits from those taxes on paved streets, police and fire protection, the criminal justice system if they spend a lot of time in Oregon. Such is the case of a recent Colombian report on Washington residents who are employees of Oregon companies but who have been working remotely during the pandemic. People love sales taxes and income taxes, and there's no denying that Portland, Oregon and Seattle, Washington have beautiful views.
Washington residents working in Oregon must pay Oregon state income taxes filed with Form OR-40-N, the Oregon Non-Resident Tax Form.