Thinking about moving across the river or changing jobs in the Portland–Vancouver area? This quick guide compares Washington vs Oregon taxes with up-to-date info for 2025 and what to expect in 2026. This is for commuters, homeowners, sellers, high earners, 1099s, and small business owners.

What we’ll cover: income tax, sales tax, property tax, real estate excise tax, gas tax, estate tax, capital gains, Washington B&O, Portland arts and preschool tax. Remember to always consult a CPA; we are not tax professionals.

WA vs OR Taxes in 2026 and Where Savings Are

• W-2 high earners often pay less overall in Washington, no state income tax on wages.

• Big shoppers often like Oregon, no sales tax on in-store purchases.

• Homeowners see steadier property taxes in Washington, Oregon vary more by area and district.

• Sellers pay real estate excise tax in Washington; Oregon has no state REET.

• Cross-border workers owe Oregon income tax on Oregon wages, even if they live in Washington.

Examples:

• Paycheck math: A single W-2 earner at $200,000

  • Washington: zero state income tax on wages.

  • Oregon: the top portion is taxed at 8.75% and 9.9% brackets

• Big purchase: a $1,000 TV

  • Vancouver’s sales tax rate is about 8.8%, which will make the total TV price approximately $1,088.

  • Portland has no sales tax, so the total would be $1,000 flat, but use tax may apply if you live in WA.

• Property tax on an $800,000 home

  • Vancouver area: often $6,800 to $7,500 per year.

  • Portland metro: often $7,000 to $9,000, some areas $10,000 to $12,000.

• Gas taxes and commuting

  • The Washington gas tax is about 55.4 cents per gallon mid 2025.

• The Oregon gas tax is about 40 cents per gallon.

The Bottom Line:

• Living and working in Washington, wages stretch farther, but shopping costs more.

• Living in Oregon and buying big items, purchases cost less, but paychecks shrink with state income tax implications.

• If you own a high-value estate, take all taxes into consideration; it could be a more complicated number to figure out.

Income tax vs Sales tax: Tradeoffs you feel in every paycheck and purchase

• Washington: no state income tax on wages or salaries.

• Oregon: progressive income tax, most filers pay marginal rates near 8.75% to 9.9% on the top slice of income.

• Washington sales tax: The state base is 6.5%, then you add that to the local rate to get the total sales tax. Clark County’s current sales tax is 7.8% to 8.8% depending on the city of the purchase. Vancouver’s current sales tax rate is 8.8%.

• Oregon sales tax: none for most retail purchases.

• Cross-border shopping: Use tax rules say Washington residents should report major tax-free Oregon purchases; however, most people do not

Property Tax: What a typical $800,000 home pays in each state

• Washington, Clark County: property tax is paid on assessed value, not the home sales price. Assessed value often trails market value by 10% to 20%.

• Most property taxes in Clark County are near 1% of the assessed value per year in many neighborhoods.

• Example: $800,000 home often pays about $6,800 to $7,500 per year.

• Oregon, Portland metro: bigger swings by area and district. $800,000 homes often $7,000 to $9,000, with some areas hitting $10,000 to $12,000.

• Why it varies: millage rates, school bonds, urban renewal, and special levy districts.

• How to check: Clark County GIS or assessor tools, Oregon county assessor pages.

• Exemptions: low-income senior exemptions in WA can reduce taxes; timber designations for acreage have special rules and exceptions as well

Gas taxes and everyday commuting

• Washington gas tax: about 55.4 cents per gallon in mid-2025, among the highest in the U.S.

• Oregon gas tax: about 40 cents per gallon.

• Impact: long highway commutes and larger vehicles feel the gap. Pump prices also vary by city and station.

Capital gains and Estate tax

• Washington capital gains: applies to long-term capital gains above roughly $270,000 per filer, indexed annually. Most real estate is currently excluded.

• Oregon capital gains: taxed as ordinary income. Oregon follows federal home sale exclusion rules.

• Federal home sale exclusion: up to $250,000 gain single, $500,000 married filing jointly, on a primary home if you meet the tests.

• Estate tax thresholds:

  • Washington exempts the first $3 million and rates about 10% to 35% above that.

  • Oregon exempts the first $1 million and rates about 10% to 16% above that.

• Planning note: estates from $3 million to $10 million should model both states with a CPA.

Buying, owning, and selling a home: taxes to plan for in Vancouver, WA vs Portland, OR

How property taxes are set and how to estimate yours

• Washington: assessed value times combined millage for your school, fire, sewer, and special levies.

• Oregon: similar, but rates can vary more by neighborhood and district.

• Quick estimate: in Clark County, use your assessed value, multiply by about 1% for an approximate tax amount

• Appeals: if the assessed value looks high, check appeal windows, sales comps, and evidence rules.

• Exemptions: low-income senior programs in WA are person-based; they do not transfer with the property. Timber status has its own rules and deadlines.

Real estate excise tax when you sell

• Washington REET: a tiered tax on the sale price, not your profit. The range in Clark County is 1.6% to 3.5%, based on price tier.

• Escrow withholds this at closing; you do not cut the check yourself.

• $800,000 sale example in WA: excise tax will be $13,295.

• Oregon: no state real estate excise tax. Washington County charges about $1 per $1,000 of price, often split 50-50 by buyer and seller.

• Tip: add REET to your net sheet early if you plan to list in WA.

Capital gains on home sales and what is actually taxed

• Washington: the state capital gains tax does not currently apply to most real estate. You still follow federal capital gains rules.

• Oregon follows federal rules. Any taxable gain above the federal exclusion is taxed as ordinary income by the state.

• Qualifying for the federal exclusion: meet ownership and use tests, confirm it was your primary home, and check timing rules.

• Tip: track capital improvements with receipts, raise your basis, and reduce taxable gain.

Annual homeowner budget

• Washington side, Vancouver, and Camas

  • Property tax is often near 1% of the assessed value.

  • Sales tax on furniture, appliances, and materials.

  • Higher gas tax for commuters.

  • No state income tax on wages.

• Oregon side, Portland metro

  • Property tax swings by district and neighborhood.

  • No sales tax on most home goods.

  • Lower gas tax than WA.

  • State income tax on wages may be the largest line item.

• Pro move: build a 12 month cost worksheet before you pick a side of the river.

Business owners and high earners

Where you live, where you work, and how your revenue is taxed can move real dollars. Model multiple setups before you sign a lease or take a job.

WA B&O tax on gross receipts vs Oregon corporate taxes

• Washington B&O: a tax on gross receipts, not profit. Applies to many businesses and 1099 contractors.

• Effective rates that many small firms pay:

  • About 1.5% under $1 million in revenue.

  • About 1.75% from $1 million to about $5 million.

  • About 2.1% above that.

• Impact: thin margin businesses feel B&O more because expenses are not deducted first.

• Oregon: no broad B&O or gross receipts tax for most individuals. Certain C corporations pay state tax on net income.

• Takeaway: if you are 1099 with low margins, compare the expected WA B&O cost with your Oregon filing options before choosing a base.

Portland arts and preschool tax: who pays and how much in 2026

• Measure 26-214 applies to higher earners in the Portland metro.

• Rate: 1.5% on income over $125,000 single or $200,000 joint. An additional 1.5% on income over $250,000 single or $400,000 joint.

• The ordinance allows rate adjustments to fully fund the program.

• Scheduled change: an 8% increase to the tax is set for January 1, 2026.

• Example, single earner with $300,000 in metro Portland

  • 1.5% on $125,000 equals $1,875.

  • 3% on $50,000 equals $1,500.

  • Total equals $3,375 for the year, before any 2026 rate adjustment.

Live in Washington, work in Oregon: cross-border paycheck rules

• Oregon taxes income earned in Oregon, even if you live in Washington.

• Washington has no state income tax on wages.

• If you work in the Portland metro, check if the arts and preschool tax applies to you.

• Make sure your Oregon employer sets the right withholdings and local forms.

• Keep records for the Washington use tax if you buy big-ticket items in Oregon.

Conclusion

• W-2 high earners usually pay less overall in Washington due to no state income tax.

• Big shoppers like Oregon for no sales tax, but remember that Washington uses tax rules.

• Homeowners: Washington is often steadier on property taxes, and Oregon can swing by area and district.

• Sellers: Washington has a real estate excise tax; Oregon does not at the state level.

• Business owners with thin margins should model Washington B&O on revenue vs Oregon corporate rules.

• Large estates: Washington’s top estate tax rate can be higher than Oregon’s; plan early and model both.