Key Takeaways
- Oregon's top income tax rate is 9.9%—among the highest in the US
- Oregon uses a 200-day rule, not 183 days like most states
- No sales tax in Oregon, but high income tax makes Florida attractive
- Portland has an additional local tax for high earners
Overview: Oregon Tax Burden
Oregon has one of the highest state income tax rates at 9.9%. While Oregon has no sales tax, the income tax burden is substantial for earners.
$5,000 - $30,000+
Annual savings depending on income level
Oregon Tax Rates
| Taxable Income | Tax Rate |
|---|---|
| $0 - $4,050 | 4.75% |
| $4,051 - $10,200 | 6.75% |
| $10,201 - $125,000 | 8.75% |
| Over $125,000 | 9.9% |
Portland Metro Area
Portland area residents may owe additional taxes:
- Multnomah County Preschool for All: 1.5-3% on high earners
- Metro Supportive Housing: 1% on income over $125,000
Oregon's 200-Day Rule
Unlike most states that use 183 days, Oregon has a 200-day statutory residency threshold:
- Spending 200+ days in Oregon makes you a statutory resident
- This is more favorable than the 183-day rule in other states
- Still need to establish domicile elsewhere to benefit
Advantage: Oregon's 200-day rule gives you more flexibility than California's 9-month rule or New York's 183-day rule. You have an extra ~17 days of margin.
Properly Exiting Oregon
- Establish Florida domicile (address, Declaration, DL, voter registration)
- Sell or rent Oregon property
- Update all accounts to Florida address
- File OR part-year return (Form 40P) for move year
- Keep day count under 200 in Oregon