Does Portland 'Cost of Living' account for Income Tax? (Hillsboro: sales, how much)

[rhizohm]

Hello everyone!

Thanks for taking a moment to read this post. I am wondering if anyone knows whether the cost of living calculations that are presented on City Data factor in the state income tax into that equation. My partner and I are thinking of moving from Seattle to Portland, so I am trying to figure out how this impacts the actual, "net" cost of living.

Point in case: cost of living in Seattle vs. Portland. According to City Data, Portland's cost of living hovers right around the national average, at 103 (100 being average), while Seattle's cost of living is 117. Since Portland is near the 100 average point, we can say that Seattle is roughly 14% more expensive than Portland. But here's my question: does this account for Oregon's nearly 10% income tax?

Now of course Washington has that big 10% sales tax, but I'm not the kind of person who buys a lot of taxable things. Mostly I pay rent, buy groceries, and have my own hobbies which don't happen to involve purchase a lot of 'stuff'. So this is quite nice for me in Washington since I don't pay much in the way of state taxes. In Oregon, they just take almost 10% out of your income right away, so the situation would be quite different. If cost of living doesn't account for that income tax difference, for someone like me it would largely negate the 14% difference in cost of living!

Does anyone know about this?

Thanks,

Rhizohm

[Nell Plotts]

I have no idea what data points were included in any particular cost of living calculation but let me assure you that Seattle is more expensive than Portland, period. I've lived there.

You could live in Bremerton for less than Portland, Poulsbo would be about the same, UNLESS you commuted to Seattle. In that case you are ...

[Leisesturm]

I'm not sure what the o.p.'s question is. No, that's incorrect. Should that be the question though, that's what I wonder. She has made peace with Washington's sales tax. Isn't the issue moot then? Sorry, but IMO the issue should be: do I like Seattle for its intrinsics? Sales tax is not an intrinsic. Neither is income tax. The answer is likely no, by the way. Portland's income tax is not likely to be taken into account when calculating its COL. I don't see how that helps but... there you are. I came to Portland for its intrinsics. My lifestyle is about as non-material as it gets. I could make peace with Washington's sales tax also. I lived in NYC from birth till 4 years ago and NYC has both a 10% sales tax and a 10% income tax! That's not why I left. You don't make life changing decisions like where you are going to live over a couple of thousand dollars in taxes. Portland is where I wanted to come and if its COL was 216 like NYC's I would have come anyway because COL does not in anyway affect anything. I live exactly the same in COL 104 Portland as I did in COL 216 NYC. Well... not exactly the same... I have much more 'space' in West Hillsboro, as an avid cyclist I love the bikecentric lifestyle of many Portlanders, I am on board with the green ethic. Seattle has a lot of Portland's intrinsics along with hills, steep ones... a less developed light rail system, less suburbia and more urban downtown... someone else may prefer this. I'm talking about me. The o.p. has to weigh IMO the intrinsics of a move because the numbers quickly become irrelevant if you are saving money but just don't like the place.

H

[Steve Pickering]

There are some that live in Washington to save property tax, but they work in Oregon and pay the higher wage tax based on Oregon's lack of a sales tax.

[cocaseco]

Originally Posted by Leisesturm

You don't make life changing decisions like where you are going to live over a couple of thousand dollars in taxes.

Your response made my head hurt

But seriously, I have relocated over a couple thousand dollars. Where you live, especially when younger is hardly life changing. Its a bed and a place to eat while you do xxx. I'm in the 99% and a couple thousand dollars in taxes is super important to me, and the OP.

[Leisesturm]

Originally Posted by cocaseco

. I'm in the 99% and a couple thousand dollars in taxes is super important to me, and the OP.

It shouldn't be. That's my point. I won't get personal but lets say for arguments sake, that generally, the average American wastes that much money every year on a variety of things. Classic penny-wise, pound foolish. It would likely cost the o.p. the better part of 2K just to get moved to Portland. She would then take a pay cut, unless independently employed or wealthy. I stand by my opinion. If its just a matter of taxes Delaware would be clogged.

H

[EnricoV]

Measuring taxes from place to place is pretty futile. One thing I know, they will get out of you what they think they need ... Whatever hidden tax that it comes from.

[AndyAMG]

Two words if you are worried about taxes. Clackamas County... or... God forbid Clark County, WA. This question gets asked a lot. I have 3 pairs of friends that have moved from Seattle to Portland and purchased homes. That speaks for itself. They are happy here, I guess "Seattle just got too Seattley" for them. Their words not mine. They concede that Seattle has more to do and more natural beauty but Portland feels more "enjoyable" overall. I make a more than a liveable wage and I pay 6-7% income tax and will get quite a bit of it back. You don't pay 10% unless your wages exceed something like 250k for the household or 125k individually. If you make that much kudos to you. If you don't then your taxes will be around 6-7%. Couple that with no sales tax (you'll be surprised how much you are paying in sales tax) and low rent, Portland is STILL cheaper overall.

[FSF]

Originally Posted by AndyAMG

Two words if you are worried about taxes. Clackamas County... or... God forbid Clark County, WA. This question gets asked a lot. I have 3 pairs of friends that have moved from Seattle to Portland and purchased homes. That speaks for itself. They are happy here, I guess "Seattle just got too Seattley" for them. Their words not mine. They concede that Seattle has more to do and more natural beauty but Portland feels more "enjoyable" overall. I make a more than a liveable wage and I pay 6-7% income tax and will get quite a bit of it back. You don't pay 10% unless your wages exceed something like 250k for the household or 125k individually. If you make that much kudos to you. If you don't then your taxes will be around 6-7%. Couple that with no sales tax (you'll be surprised how much you are paying in sales tax) and low rent, Portland is STILL cheaper overall.

I would certainly imagine that Portland is cheaper overall. But it's usually relative. There are a lot more jobs, and higher paying ones, in Seattle.

[Larry Caldwell]

Oregon's income tax offers all the deductions that federal income tax offers, so your first $10,000 of earnings is tax free, and then the brackets step up, so you only pay the maximum 9% on the top end of your income. The average effective income tax rate is about 6%, though if you earn over $125,000 a year ($250,000 for a married couple), the tax rate can go even higher than 9%.