how can I owe more Oregon income tax than federal?

[MtnSurfer]

Originally Posted by leastprime

Oregon has essentially a flat income tax that begins at a very low income level and no sales tax.
Washington has no income tax but taxes spending.
Which is better? Depends.

Exactly, I think during your highest earning years, WA will come out significantly ahead. That is, if you don't have some crazy kind of high valued properties. But assuming similar modest home types, WA's overall tax burden should be lower.

Once retired, it may be more of a toss up. Retirees are still taxed on their retirement income. So, depending on that annual amount, low/no income states may still be the better option. Spending habits also factor in if buying lots of big ticket toys - boats, jetskis, RVs, motorcycles, trucks, etc... Sales tax can really add up. Otherwise, for normal everyday stuff, its not that big of a savings in the overall scheme of things. We don't buy enough big ticket items for it to really matter.

Derek

[StealthRabbit]

For FT retirees who are mobile...
SD domicile (no income tax)
MT LLC to own expensive vehicles / planes / boats (no sales tax, no inspections, no emssion tests / requirements, and lifetime plates for RV's and vehicles over 11 yrs old) ~$75 / yr for LLC fees (Everything can be done online)

As a retiree, an Oregon domicile would be fine if you are OK with paying income tax with a very low threshold.

WA was good during earning years (High wages and no income tax). It lost it's luster when the income stopped... (17 yrs ogo for me). Most my vehicles are 'collector', so $42 for lifetime plates. Sales tax is not so rough to digest for $35 cars. I will change to SD domicile as soon as they offer an Enhanced CDL license and access to my Port and Sentry clearances I get with border state WA. But I will likey be living overseas for a more affordable, healthy, and secure quality of retired / aging life.

[Deserterer]

Originally Posted by StealthRabbit

Consider other options than wage income for earnings in the future.

I'd love to but It takes money to make money. I do have 1099 income that Oregon can't touch, thankfully, in part because I had a loss last year and in part because it wasn't earned in OR.

[mlhm5]

Oregon state taxes are more than CA state taxes and if you do not pay any federal taxes you will not be paying any CA taxes. Oregon car insurance is much higher than CA. In CA this year I paid $1063 for two cars with top coverage, the exact same policy with the same company for OR is $1670. Electricity rates are far cheaper in OR as well as natural gas. OR does not have any state sales tax so they have to get revenue from somewhere and that is state income taxes, IMO.

[Deserterer]

Well it was awful nice of them to send me $150 more refund than I had calculated...no explanation yet though...