Work in Washington, Live in Oregon: Tax Guide

Oregon taxes its residents on worldwide income. Where you earn the money is irrelevant — if you are an Oregon resident, Oregon taxes it. Washington's lack of income tax means Washington does not take a cut, but that does not reduce what you owe Oregon. You get no credit because there is no second state's tax to credit against.

What about Portland's local taxes — Metro SHS and Multnomah PFA?

Portland-area Oregon residents face additional local income taxes that apply based on residence, not workplace:

• Metro Supportive Housing Services (SHS) tax: Imposed on residents of the Portland Metro district on income above a threshold. Applies to all income regardless of where earned.
• Multnomah County Preschool For All (PFA) tax: Imposed on Multnomah County residents on income above a threshold. Also applies to all income regardless of source.

These are separate filings from your Oregon state return. They apply even if you work in Washington. Check the Portland Revenue Division for current thresholds and rates.

How does this compare to the reverse — WA residents working in OR?

The reverse direction is actually the more interesting scenario: Washington residents working in Oregon owe Oregon nonresident tax on their OR-source wages, with no home-state offset. See our dedicated guide for that crossing.

Would moving to Washington save me money?

If you moved your residence from Oregon to Washington, you would no longer owe Oregon income tax on non-OR income. However, if you continued working in Oregon, those wages would still be OR-source income taxable by Oregon as a nonresident. The savings come only from income not sourced to Oregon. Compare using the OR salary calculator and WA salary calculator.

What if I moved between OR and WA mid-year?

File Oregon Form 40P (part-year resident). Oregon taxes all income during your OR residency plus OR-source income during your WA residency. Washington has no return. Keep your exact move date documented.

How do Oregon's Metro and Multnomah taxes interact with WA work?

The Portland Metro Supportive Housing Services (SHS) tax and Multnomah County Preschool For All (PFA) tax are based on where you live, not where you work. If you live in the Portland Metro district or Multnomah County, these taxes apply to your income even if every dollar is earned in Washington. Working in a no-tax state provides zero relief from these local obligations.

These taxes have income thresholds — they apply only above a certain income level. Check the Portland Revenue Division for current thresholds and rates, as they were recently enacted and may be adjusted.

What if I work remotely from Oregon for a Washington employer?

Your Oregon tax obligation is the same whether you commute to WA or work remotely from OR. Oregon taxes residents on all income regardless of source. Remote work from Oregon for a WA employer means your wages are earned in Oregon (from Oregon's perspective, as a resident you owe tax on all income). There is no tax advantage to remote work in this direction — unlike the reverse crossing, where WA residents can reduce their OR tax by working fewer days in Oregon.

What if I moved from Oregon to Washington mid-year?

File Oregon Form 40P as a part-year resident. Oregon taxes all income during your OR residency period. After moving to WA, Oregon taxes only OR-source income as a nonresident. If you continue working in Oregon after moving to WA, those wages remain OR-source. Washington has no return to file. The key benefit of the move is that non-OR income (investments, savings, side income from WA work) drops off Oregon's radar after your move date.

For take-home comparisons, see the Oregon salary calculator and Washington salary calculator. For remote work across multiple states, see the remote work guide.

Does Washington have any state-level tax on income?

Washington has no traditional state income tax on wages. However, Washington does impose a Capital Gains Tax on certain long-term capital gains above a threshold. This tax applies to Washington residents on gains from the sale of stocks, bonds and other capital assets — but it does not apply to wages or salary. For the purpose of cross-border commuting, Washington's lack of wage income tax means your only state tax obligation is to Oregon.

Washington also has relatively high sales and property taxes compared to Oregon, which has no sales tax. The tax picture is broader than just income tax when comparing cost of living between the two states.