Oregon has the costliest state and local income taxes in the nation. Portland homeowners earning $150,000 carry a tax burden that does not exist in seven destination states. Here is the full financial picture, including what your equity buys you when you get there.

By Bridgetown Home Buyers | Portland, Oregon | April 2026 | Part 5 of the Keep It Weird Series

The previous four articles in this series have built a documented case for why Portland’s housing market is under structural pressure. Portland cannot build enough housing. A 50-year-old land use law constrains supply at the source. People are leaving for nine specific destination cities. The economy shed 8,800 jobs in 2025 while the rest of the country expanded.

This article does something different. It runs the numbers.

Because ultimately the decision to sell a Portland home and move is not just a philosophical one about urban trajectories. It is a financial one. And the financial picture, when you lay it out completely, is more compelling than most Portland homeowners realize, not just because of what you are leaving behind but because of what your equity actually buys you somewhere else.

This is the article that answers the question every reader of this series eventually asks: what does the math actually look like? If you are already past the math and want to know what your home is worth today, Bridgetown Home Buyers will give you a no-obligation cash offer within 24 hours.

Oregon has the costliest state and local income taxes in the nation at 4.8% of residents’ income. The average Oregonian paid $3,123 in state income taxes in 2023, the highest per-person state income tax burden in the country. That is before Portland’s additional local taxes.

Table of Contents hide

1 Oregon’s Tax Burden: The Number Nobody Talks About

2 What the Tax Difference Actually Costs You Annually

3 The Full Tax Picture: Portland vs. Your 9 Destination Cities

4 What Your Portland Home Equity Actually Buys

5 The Cost of Waiting in PDX

6 A Note on What This Analysis Does Not Cover

7 Ready to Run Your Own Numbers?

8 Read the Full Keep It Weird Series

9 Sources & Data

9.1 Related posts:

Oregon’s Tax Burden: The Number Nobody Talks About

Most conversations about Oregon taxes focus on the 9.9% top marginal rate. That is the headline number and it is real. But it is not the complete picture for Portland homeowners specifically, because Portland layers additional local taxes on top of Oregon’s state rate in a way that no other major Pacific Northwest city does.

Layer 1: Oregon State Income Tax

Oregon’s graduated state income tax runs from 4.75% to 9.9%. According to USAFacts, Oregon collected the highest average state income tax per person in the entire country in 2023 at $3,123 per resident, ahead of Massachusetts, New York, Connecticut, and every other state. WalletHub confirms Oregon has the costliest state and local income taxes in the nation at 4.8% of residents’ income.

Layer 2: Metro Supportive Housing Services Tax

In 2020, Metro voters approved a 1% personal income tax on earnings above $125,000 for single filers and $200,000 for joint filers. This tax applies to anyone who lives, works, or earns income within the Metro boundary, which covers Multnomah, Washington, and Clackamas counties. This is not a Portland-only tax. It applies to Beaverton, Hillsboro, Lake Oswego, and Gresham residents too.

Layer 3: Multnomah County Preschool for All Tax

Multnomah County voters separately approved a 1.5% income tax on earnings above $125,000 for single filers and $200,000 for joint filers. The rate increases to 3% on income above $250,000 for single filers and $400,000 for joint filers. This rate is scheduled to increase by an additional 0.8% in 2027. This tax is specific to Multnomah County residents and those who earn income there.

Layer 4: Portland Arts Tax

Every Portland resident age 18 and older who earns more than $1,000 annually owes a flat $35 Arts Tax. This is the smallest of the four layers but it signals the culture of layered local taxation that distinguishes Portland from every other Oregon city.

A Portland homeowner in Multnomah County earning $175,000 as a single filer pays Oregon state income tax, Metro SHS tax on income above $125,000, Multnomah County PFA tax on income above $125,000, and the Arts Tax. The combined marginal rate on income between $125,000 and $250,000 reaches approximately 12.4% for a single filer. That rate does not exist in Texas, Washington, Nevada, Tennessee, or Florida.

What the Tax Difference Actually Costs You Annually

Abstract percentages are hard to feel. Real dollar amounts are not. Here is what the Oregon and Portland tax structure costs a homeowner at three income levels compared to moving to a zero-income-tax state like Texas, Washington, or Nevada.

For a single Multnomah County filer earning $100,000:

Oregon state income tax: approximately $7,500
Metro SHS: $0 (below threshold)
Multnomah County PFA: $0 (below threshold)
Total Oregon and local income tax: approximately $7,500
Same earner in Texas, Washington, or Nevada: $0 state income tax
Annual savings by moving: approximately $7,500

For a single Multnomah County filer earning $150,000:

Oregon state income tax: approximately $12,600
Metro SHS tax: 1% on $25,000 above threshold = $250
Multnomah County PFA: 1.5% on $25,000 above threshold = $375
Total Oregon and local income tax: approximately $13,225
Same earner in Texas, Washington, or Nevada: $0 state income tax
Annual savings by moving: approximately $13,225

For a joint Multnomah County filing household earning $250,000:

Oregon state income tax: approximately $21,800
Metro SHS tax: 1% on $50,000 above threshold = $500
Multnomah County PFA: 1.5% on $50,000 above threshold = $750
Total Oregon and local income tax: approximately $23,050
Same household in Texas, Washington, or Nevada: $0 state income tax
Annual savings by moving: approximately $23,050

Over five years at the $150,000 income level, the cumulative tax savings from moving to a zero-income-tax state approaches $66,000. That is not nothing. That is a significant down payment in most of the nine destination cities identified in Article 3 of this series.

~$13,225 annual tax savings moving from Portland to Texas at $150,000 income (single filer estimate, Oregon state plus local taxes)

~$66,000 five-year cumulative tax savings at $150,000 income (before accounting for rate increases in 2027)

0.8% additional PFA tax rate increase coming in 2027 (already legislated, Multnomah County)

The Full Tax Picture: Portland vs. Your 9 Destination Cities

Income tax is only one part of the total tax burden comparison. Here is the complete side-by-side picture across state income tax, property tax rate, and sales tax for Portland and the nine destination cities from Article 3.

Destination	State Inc. Tax	Property Tax Rate	Sales Tax	Median Home Price
Portland, OR	4.75-9.9% + local taxes	~1.08% (Multnomah)	None	$529,000
Vancouver, WA	None	~0.9%	6.5%+ local	$460,000
Boise, ID	5.8% flat	~0.7%	6%	$450,000
Bend, OR	4.75-9.9%	~0.78%	None	$600,000+
Salem, OR	4.75-9.9%	~0.78%	None	$390,000
Spokane, WA	None	~1.0%	8.9%+ local	$330,000
Austin, TX	None	~1.8%	8.25%	$525,000
Raleigh, NC	4.5% flat	~0.8%	7.25%	$415,000
Nashville, TN	None on wages	~0.7%	9.75%	$430,000
Phoenix, AZ	2.5% flat	~0.6%	8.6%	$420,000

A few important notes on this table. Oregon has no sales tax, which is a genuine financial benefit that partially offsets the income tax burden, particularly for high spenders. Texas has higher property tax rates than Oregon, which means Austin homeowners pay more in annual property taxes on a similarly-valued home. The net financial advantage of moving depends heavily on your income level, spending habits, and how long you plan to stay.

But the pattern is clear. At income levels above $125,000, Oregon’s combined state and local income tax burden exceeds what homeowners pay in most of the nine destination cities by a meaningful margin, and that gap widens every year as Oregon’s local tax rates trend upward while destination states like North Carolina and Arizona trend downward.

What Your Portland Home Equity Actually Buys

The tax savings argument is compelling on its own. Combined with the equity deployment calculation it becomes genuinely powerful.

A Portland homeowner who bought five years ago at the 2021 market median of approximately $430,000 and is selling today at approximately $529,000 has captured roughly $99,000 in appreciation, not accounting for mortgage paydown. That is the equity in play. Here is what it buys in each destination market.

Selling at $529,000 in Portland and buying in destination markets:

Vancouver, WA at $460,000: $69,000 equity surplus after purchase, plus no state income tax going forward
Boise, ID at $450,000: $79,000 equity surplus after purchase, lower income tax rate
Salem, OR at $390,000: $139,000 equity surplus after purchase, same tax structure
Spokane, WA at $330,000: $199,000 equity surplus after purchase, no state income tax
Raleigh, NC at $415,000: $114,000 equity surplus after purchase, 4.5% flat income tax
Nashville, TN at $430,000: $99,000 equity surplus after purchase, no state income tax on wages
Phoenix, AZ at $420,000: $109,000 equity surplus after purchase, 2.5% flat income tax
Austin, TX at $525,000: roughly even on purchase price, no state income tax going forward

The equity surplus figures above assume a cash purchase for illustration purposes. In practice, a Portland homeowner moving to Spokane with $199,000 in equity surplus could put 40% down on a $330,000 home, dramatically reducing their mortgage payment compared to their Portland mortgage, while simultaneously eliminating their Oregon state income tax obligation and reducing their overall cost of living by 12% to 19%.

The math compounds. Lower purchase price plus lower mortgage plus lower income tax plus lower cost of living creates a financial position after the move that can look dramatically different from the one left behind. This is the calculation that the Portland homeowners in Article 3 of this series are running. It is not impulsive. It is arithmetic.

A Portland homeowner selling at $529,000 and buying in Spokane at $330,000 walks away with a $199,000 equity surplus, a lower mortgage, no state income tax, and a cost of living that runs roughly 15% below Portland. That is not a lateral move. That is a structural financial upgrade.

The Cost of Waiting in PDX

The financial case for moving out of is not just about what you gain in the destination. It is also about what you lose by staying in Portland while the underlying conditions continue to deteriorate.

Portland’s multifamily housing pipeline is at its lowest level since 2011. The economy shed 8,800 jobs in 2025. High-earning residents are leaving and being replaced by lower-income arrivals. The income gap between those leaving and those arriving in Multnomah County is $33,175 per year. These conditions do not reverse quickly. They compound.

Every year a Portland homeowner waits, three things happen simultaneously. Oregon’s local tax burden increases, with the Preschool for All rate rising by 0.8% in 2027 already scheduled. The economic conditions that support Portland’s current home prices continue weakening. And the equity window, which is still meaningfully open today at a $529,000 median, narrows as fewer high-earning buyers compete for available homes.

The former PDX homeowners who will look back at this period clearly are not the ones who moved in panic. They are the ones who recognized that waiting for conditions to visibly deteriorate before acting means waiting until the equity they are trying to protect has already started declining. By that point the window has not closed but the transaction has become more difficult, the buyer pool smaller, and the urgency less optional.

A Note on What This Analysis Does Not Cover

This article presents the financial case. It does not present the full picture of what a move involves, because the financial case is only one dimension of a decision that is also personal, professional, and logistical.

Oregon’s lack of sales tax is a genuine benefit that saves consistent spenders thousands of dollars annually and partially offsets the income tax burden. Portland’s property tax rate, while higher than Oregon’s state average at 1.08%, is not extreme by national standards. Austin, for example, has a property tax rate around 1.8%, which on a $525,000 home means roughly $9,450 per year in property taxes compared to approximately $5,700 on a Portland home of similar value. The income tax savings in Austin may be partially offset by higher property taxes depending on your home value.

Individual circumstances vary substantially. A homeowner with significant retirement income, mortgage deductions, specific Oregon tax credits, or a job that requires Portland presence may find the calculation looks different than the scenarios modeled here. This article is a starting framework, not a personal tax plan.

What it is meant to do is give Portland homeowners the factual foundation to have an informed conversation about the full financial picture, with their accountant, with their financial advisor, and with Bridgetown Home Buyers when they are ready to understand what their home is worth today.

This is not a decision that benefits from waiting for perfect information. The equity is real today. The tax burden is real today. The economic trajectory is documented and directional. The financial case for acting exists right now, and it gets harder to make with every year Oregon’s local tax rates increase and Portland’s economic foundation continues eroding.

Ready to Run Your Own Numbers?

The first step in any financial analysis is knowing what your home is actually worth today, not what Zillow estimates, not what your neighbor sold for two years ago, but what a direct cash buyer would pay you in the current market. Bridgetown Home Buyers will give you a no-obligation cash offer within 24 hours, with no listing, no showings, no repairs required, and no agent commissions. That number is the anchor for every financial calculation in this article.

For inherited properties, estate situations, or properties that need significant work before qualifying for traditional financing, Bridgetown’s property buyout program handles the complexity, so you do not have to. No cleanup, no repairs, no waiting.

Read the Full Keep It Weird Series

This is Part 5 of the Keep It Weird series. Part 1: Portland vs Austin housing production. Part 2: Oregon’s Urban Growth Boundary. Part 3: The 9 cities Portland residents are moving to. Part 4: Portland’s job crisis and home values. The full series is at the Oregon Housing Market hub.

Sources & Data

All data is drawn from publicly available sources. Click each to verify.

We buy houses for cash in PDX Oregon – directly, no agents, no fees, no waiting. If you are ready to explore your options, we are ready to talk.