Taxes
Vancouver, WA for Tax Purposes
For decades people have moved to Vancouver to avoid the burden of income taxes in Oregon and California. Today, many Vancouver residents with Oregon employers opt for remote work—and minimize days at their Oregon offices—with taxes in mind. There is nuance, which we'll get to below, but first we'll have a peek at the 1933 Supreme Court decision and the tax landscape in Portland.
In 1933, Washington passed an income tax, and the Washington Supreme Court heard a case on whether it was constitutional. The story is that Justice Oscar Holcomb leaned toward upholding the tax but then got his tax form in the mail and switched his vote to "No." The court voted 5-4 against the tax, holding that the state constitution forbids a graduated income tax.
History
Oscar Holcomb, the WA Supreme Court justice who didn't want to pay income tax (as the story goes).
Taxes in Portland, Oregon
As of early 2026, Oregon imposes one of the highest state income taxes in the country, and municipalities in Portland impose their own income taxes. The combined state and local income-tax burden can exceed 13% for high earners. Let's have a look. Keep in mind that taxes can change abruptly and that you should consult with your tax attorney or accountant.
State income tax
As of early 2026, the state code specifies a tax rate of 8.75% on income over $5,000 and 9.9% on income over $125,000. Check for updates here (ORS 316.037): https://www.oregonlegislature.gov/bills_laws/ors/ors316.html
County income tax
As of early 2026, the Multnomah County code specifies a county income tax rate of 1% on income over $125,000 and 3% on income over $250,000. See Chapter 11.500:
https://multco.us/file/chapter_11:_revenue_and_taxation/download
Regional income tax
The Portland area has a regional government called Metro. As of early 2026, the Metro code specifies an income tax rate of 1% on income over $125,000 (Metro Code 7.06): https://www.oregonmetro.gov/sites/default/files/2026-03/metro-code-complete-effective-20260318.pdf
Estate tax
As of early 2026, the Oregon State Code specifies an estate tax rate of 10% on value over $1 million and 16% on value over $10 million (ORS 118.010):
https://www.oregonlegislature.gov/bills_laws/ors/ors118.html
Siver lining—sales tax
As of early 2026, Oregon imposes no general, statewide tax on retail sales. This is an advantage over Washington, although Vancouver residents often avoid sales tax by driving across the river for purchases.
Sales tax
Washington does have a sales tax. Because so many Vancouver residents would rather not pay it, a large shopping complex has been built out on each of the interstate freeways just across the river. As of early 2026, each complex has a Best Buy, a Target, clothing and shoe stores, and more, as well as a Home Depot either on site or nearby. One of the complexes also has an Ikea.
Estate tax
Washington does have an estate tax. As of early 2026, the state code indicates that the first three million dollars of an estate's value are excluded from tax (RCW 83.100.020):
https://app.leg.wa.gov/rcw/default.aspx?cite=83.100.020
The most recently published schedule in the state code shows rates from 16% (on amounts between $3 million and $4 million) up to 35% on amounts over $9 million (RCW 83.100.040):
https://app.leg.wa.gov/rcw/default.aspx?cite=83.100.040
If you have a large estate and are considering a move to Washington or Oregon, I suggest consulting with a top trust attorney and estate planner. One of the most respected in SW Washington is my friend Bob Kabacy. (See below.)
"Millionaire's tax"
Early in 2026, Washington passed a tax on income over $1 million. We'll have to see if the Washington Supreme Court allows it to stand. Check for updates here and on my YouTube channel, where I'll conduct periodic interviews with tax attorneys and accountants.
Taxes in Vancouver, Washington
You may see Washington on lists of states with no income tax, and Washington offers many people dramatic tax advantages over Oregon or California, but we do have taxes here. Again, tax matters are complex and can change abruptly. Be sure to consult with your tax attorney or accountant.
Tax on large non-exempt capital gains
As of early 2026, the state code specifies a tax of 7% on capital gains in excess of $250,000, with exemptions for real estate and tax-sheltered retirement accounts. See the full details in the state code (RCW 82.87.040—50):
https://app.leg.wa.gov/RCW/default.aspx?cite=82.87.040
Business & occupations tax
The business and occupations tax applies to gross business revenue. As of early 2026, the state code shows a tax rate of 0.471 percent for retailers (RCW 82.04.250) and 0.484 percent for wholesaling of digital products and services (RCW 82.04.257). Updates:
https://app.leg.wa.gov/rcw/default.aspx?cite=82.04.220
Top Local Tax Experts
Greear Kramer Monaghan
CPAs with strong multi-state tax planning, geared toward high-net-worth clients and complex circumstances.
https://www.gkm.cpa/
Landerholm, P.S.
Attorneys expert in tax strategy and in relocation for high-net-worth clients:
https://www.landerholm.com/
Conover Tax & Accounting
Accountants with a strength in multi-state situations and planning:
https://www.conovertax.com/