State tax question (Seattle, Vancouver, Camas: transplants, sales, real estate)

[outdoor girl]

My husband will be putting in for a transfer for Portland soon. He works for a Hugh freight company (not Brown.) Anyway, we like the houses in Vancouver, Camas and Washougal and was wondering if he worked in Oregon, and we live in Washington, do they still withhold state tax from his Payroll? Is there anyone else that can shed some light? Maybe you are in the same situation. Thanks....

[compltlyme]

No they don't with hold state taxes from your paycheck in WA State. But since his paycheck will be coming from Oregon they may. I am not sure of Oregon State Taxes.

[RodFarlee]

Originally Posted by outdoor girl

...if he worked in Oregon, and we live in Washington, do they still withhold state tax from his Payroll?

Yes, income earned in OR is taxed by OR.
However, any other income (interest, dividends, capital gains) wouldn't be taxed by OR, and isn't taxable in WA.
See https://secure.dor.state.or.us/piti/index.cfm (broken link)

[timetogo]

Hi,


I looked at Oregon to move but the state tax make is a place not to live.


Oregon's tax is 9% over $5,000.00 of income. A horrible tax rate applied to income earners of all income levels. Oregon has higher real estate taxes but has no Sales Tax. Washington has a high sales tax and no income tax. Buy everything in Oregon but you must buy your car in washington and pay a very high tax. Get a big pay raise to work in Oregon.

My data is two years old so maybe there has been a change, but I doubt it.

[outdoor girl]

Thanks for all the info. All is appreciated...

[Leslie Austin Johnson]

I live in Vancouver and work in Gresham, east of Portland. Yes, they withhold Oregon tax from my check at the rate of about 9.5%. However, there is no sales tax in Oregon so if you are a shopper, that's the advantage. Also, I purchased a hybrid car in Oregon and was required to register and pay sales tax in Washington but was NOT allowed to receive a hybrid certificate and rebate from the State of Oregon, even though I pay full income tax to Oregon. Not a good deal. Property tax rates are lower in Washington --- another advantage --- but property costs are catching up with Portland. To make the system work well you need to live and work in Washington.

Good luck!

[oldcee]

Yes, income earned in Oregon is subject to Oregon income tax no matter where you live. And no, if living in Washington, you will have no say as to how that money is spent. However, I have lived this situation for a long time and find it quite acceptable. Housing is cheaper and property taxes are not as high on the Washington side of the Columbia and most major purchases can be made in Oregon if one chooses to get around the sales tax issue although the State of Washington and Clark County bussiness owners don't appreciate that. Cars are an exception as no matter where you buy them you must pay a tax to register them in Washington. To me, the atmosphere is totally different and better north of the river.
You didn't mention children. If schools are a factor and you do your research, I think you will find that the systems in the Vancouver, Camas and Washougal will be hard to beat, although I give the edge to Vancouver.

[nouveautes]

Lots of people are moving from Oregon to WA. Makes sense from a tax standpoint, but the commute is sometimes bad. If your husband works on the east side of PDX he can take the 205, which is an ez commute. I5 is
different. Taxes must be paid on income earned in Oregon. End of story.
Advantages are great. Property taxes are less, schools are significantly superior, More rural/urban than Oregon, Lots of Calif transplants, etc
MOD CUT

[KidBlue]

I'm jealous reading about your taxes. I live in NoCA and we get to pay income tax of about 9.9%, property tax, and sales tax of about 7.75%. Our real estate tax is lower than OR or WA but the property values in most places are so inflated, you pay more anyway.

But, I actually wrote because in CA you pay sales taxes on automobiles based on your residence. It used to be based on where you purchased the vehicle, but there was a lawsuit because, of course, people would go to the cheapest county (in CA like WA the taxes are different for various counties) to buy a car. This was hurting dealers that were in high tax counties, so the tax was changed to be assessed on the county of residence. This may be the same for WA.

Hope you are cooler up there, it's 110 here right now (Sacramento) and was 84 when I got up at 5:30 am .

[RodFarlee]

Originally Posted by KidBlue

But, I actually wrote because in CA you pay sales taxes on automobiles based on your residence... This may be the same for WA.

Yes, vehicle use (sales) tax does vary across the state, and is paid based on the owner's address, not on the point of sale. Rates range from 7.5% (in a few rural eastern counties) to 8.9% (Seattle).
For a table, see the state revenue web site:
http://dor.wa.gov/content/forms/forms_sale.aspx