Plus sales tax on vehicles. However, if you compare $200k in taxable in income in Oregon vs Washington you are paying $18k in state income taxes if single, or $16,900 if married in state taxes, more if you live in Portland and pay local taxes. You’d have to drink a lot of hard liquor to make up that difference. Seattle sales tax is 10.3%, you’d have to spend $165k to spend the same in sales as income tax and groceries aren’t taxed.I've been McLovin' it since I moved here!The great thing is you live in a no income tax state. For someone with a high income who wants to save money that’s a huge benefit.
Although we make up for it in other ways. The vice tax on hard liquor is super high.
WA state would much rather you drink wine and beer.
Having been a w2 employee in Oregon from 29-47 (and still earning most of my income in Oregon now at age 48 despite being a Washington resident, looking to shift more work to Washington) I estimate I paid $400-$500k in state income taxes over the past two decades. Particularly when I was single and with low spending it was a big mistake to not prioritize tax savings in choice of state. With the market returns of that time period it was easily a 1 million dollar mistake.
To the OP, you can start a 529 (I did in Oregon before kids) but not as favorable with no income tax. I’d suggest not bothering and doing taxable investing instead once you have maxed the back door Roth and mega back door Roth (if available at your company, back door Roth unrelated to your job).
Statistics: Posted by er999 — Sat Apr 27, 2024 8:30 am — Replies 12 — Views 1271