Retiring near Portland? (live in, bus, transit)

[ccjarider]

Originally Posted by Nell Plotts

People whine about our taxes as we have a progressive State income tax. For a given level of services local government must pick the pockets of their residents through taxes and fees. I have lived in WA, let me assure you that living there is not cheaper.

Property taxes, generally, are lower outside of the City of Portland in large part because we have an aging and therefore failing sewer and water infrastructure. The streets get more wear and are in need of repair. All of that costs money. Outside of Portland the school buildings, water and sewer pipes are newer and streets not subject to so much traffic.

I agree that "King City" may be what you are looking for if you want a suburban lifestyle, a higher end option would be at Charbonneau further south off I-5. Those are the only 55+ development that I can think of that isn't associated with a continuing care facility. There are a couple apartment buildings, condos, even a housing co-op, in the core area that has an older clientele. If you want to explore those let me know.

The idea that OR incomes tax is "progressive" is silly - if not downright propaganda. Vast majority of people pay 9-9.9%. .


For single taxpayers and married couples filing separate returns:

5% on the first $3,350 of taxable income.
7% on taxable income between $3,351 and $8,400.
9% on taxable income between $8,401 and $125,000
9.9% on taxable income of $125,001 and above.

For married couples filing jointly, qualifying widows or widowers, and heads of household, the rates remain the same, but the tax brackets are doubled.

[Nell Plotts]

So move and work in WA if you think they offer you a better deal. Or you could move to Idaho or Wyoming. Wyoming has a resource extraction tax, that works well so long as coal and oil extraction is profitable.

[oregon911]

Check out Columbia County (Scappoose, St. Helens and Columbia City) all have the small town feel but close enough to Portland if you feel like visiting once in a while.

[tmittelstaedt]

You have enough money to get a nice home in the Ladd's Addition area in SE which will put you both close in - walking distance to downtown in fact - yet you will be in a secluded community. I would strongly recommend looking there. Most suburbs surrounding Portland were built before mixed use became in vogue so they are very much a car culture there is none of this walking to places nonsense. Traffic on I-5 does stink during rush hour but you are also correct - while Portlanders love to whine about traffic, they don't know what real traffic congestion is - which is silly seeing as how we live so close to Seattle.


WA has a lot of proponents but the I-5 and I-205 bridges are horrendous bottlenecks. WA has a significant sales tax and no income tax so what is the point of living in an income tax free haven when you are retired and have no income to tax? Oregon has no sales tax and your total tax bill on retirement money will be much lower because you won't be nickled and dimed every time you turn around and buy anything.

[ccjarider]

Originally Posted by tmittelstaedt

You have enough money to get a nice home in the Ladd's Addition area in SE which will put you both close in - walking distance to downtown in fact - yet you will be in a secluded community. I would strongly recommend looking there. Most suburbs surrounding Portland were built before mixed use became in vogue so they are very much a car culture there is none of this walking to places nonsense. Traffic on I-5 does stink during rush hour but you are also correct - while Portlanders love to whine about traffic, they don't know what real traffic congestion is - which is silly seeing as how we live so close to Seattle.


WA has a lot of proponents but the I-5 and I-205 bridges are horrendous bottlenecks. WA has a significant sales tax and no income tax so what is the point of living in an income tax free haven when you are retired and have no income to tax? Oregon has no sales tax and your total tax bill on retirement money will be much lower because you won't be nickled and dimed every time you turn around and buy anything.

Actually people have significant assets that are taxed as income in retirement. Income comes from many sources, not just a job. For example pensions, IRA and 401k distributions are income.

Further Oregon is one of the few states with an estate tax.

Look if one wants to live in Oregon in retirement, that's fine - but please go into these decisions with eyes open - that all I am saying. I would think this is a type of information people come to CD data for.

[StealthRabbit]

Originally Posted by tmittelstaedt

....

WA has a lot of proponents but the I-5 and I-205 bridges are horrendous bottlenecks. WA has a significant sales tax and no income tax so what is the point of living in an income tax free haven when you are retired and have no income to tax? Oregon has no sales tax and your total tax bill on retirement money will be much lower because you won't be nickled and dimed every time you turn around and buy anything.

1) I-5 and I-205 bridges are only a bottleneck is you MUST commute to Portland, Retirees can go 'off shift' (If they have to go at all...)
2) As mentioned... retirees have many sources of income (ALL which is taxed as a resident of Oregon, thus ALL my income properties are in No Income Tax states (I don't like paperwork / filing, even MORE than paying taxes!)
3) Retirees are DONE accumulating 'stuff' (not big BUYERS)

SO... ANY state is an option (I am NOT a proponent of OR or WA), Open your eyes, run the numbers.

Many retirees use SD (one night per lifetime for an income tax free domicile)
They have MT LLC's (no sales tax) to buy and own their expensive assets (Motorhomes, boats, cars, airplanes...)

[NW4me]

Originally Posted by ccjarider

The idea that OR incomes tax is "progressive" is silly - if not downright propaganda. Vast majority of people pay 9-9.9%. .


For single taxpayers and married couples filing separate returns:

5% on the first $3,350 of taxable income.
7% on taxable income between $3,351 and $8,400.
9% on taxable income between $8,401 and $125,000
9.9% on taxable income of $125,001 and above.

For married couples filing jointly, qualifying widows or widowers, and heads of household, the rates remain the same, but the tax brackets are doubled.

Originally Posted by ccjarider

Actually people have significant assets that are taxed as income in retirement. Income comes from many sources, not just a job. For example pensions, IRA and 401k distributions are income.

Further Oregon is one of the few states with an estate tax.

Look if one wants to live in Oregon in retirement, that's fine - but please go into these decisions with eyes open - that all I am saying. I would think this is a type of information people come to CD data for.

It is quite remarkable how early that 9% tax rate clicks in!

And here's a useful resource to estimate what your taxes would be in another state:

smartasset.com/retirement/retirement-taxes

To be more precise you could go to your prospective state's web site, download a tax form and do the math.

In my case, I'm retired and collecting a pension and social security. My 2017 CA state income tax was $560. If I'd lived in OR, it would have been about $1760, even though Oregon doesn't tax social security. It's true that OR has no sales tax, but even in states that do have one, food is exempted (at least, that's so in CA & WA). So for me the complete absence of a sales tax won't counterbalance the much higher state income tax.

I plan to move to Oregon anyway, but I'm going there informed.

[Nell Plotts]

A high net worth couple can avoid estate tax with good estate planning. Keep in mind that we are not a community property state.

[Frihed89]

Originally Posted by Khuselid

This may be true, however we want to be in Oregon. It can’t be anymore tax hell than California! We want to be close to our kids.

You could live in Vancouver, WA. It's just across the Columbia River from Portland.

[Frihed89]

Originally Posted by Harpaint

Portland traffic is bad at commuter times, but in no way does it compare to LA. People use the Metro buses, and street cars daily with no problems. The MAX trains have had some problems but they are certainly not routine occurancers. We prefer Oregon to Washington, but that is a personal preference issue only and based mainly on the fact that are kids are in the PDX area.

Take Sandy instead.