Washington state (not DC) - Taxes? Cost of living?

[fanaudical]

Let's try to keep this out of PARF, please.

I've watched the taxes and cost of living continue to escalate here in Oregon and am considering moving north (and not anywhere near the Seattle area). Until recently, my projections were that living and working in Washington would save me considerable money in tax burden per year. However, recent changes in Washington have me doubting that.

Washingtonians - What's going on with state taxes? Not counting sales taxes, roughly what tax rates are you paying for property tax and other taxes?

[LWJ]

If you work in Oregon and live in Washington, I have always heard this is the worst way to go.

Housing is generally less than Portland (except for Seattle Metro).

Sales tax is a mess compared to Oregon (which is why Portland has a disproportionate number of furniture stores - Washington buyers.

I know many people who made their money in Oregon and then move to Washington (Or Arizona or Nevada) when they sell to ditch the taxes. Which, in my mind, is a really crappy thing to do.

Other than above, I don't have opinions on Washington as it pertains to taxes. I will say, their schools seem better funded than Oregon. That has to come from somewhere.

[jhynesrockmtn]

There will always be pushes to implement an income tax in WA, but hopefully it won't succeed, or only succeed for billionaires. I don't see how the housing cost is going to be much different, unless you are willing to move to a more rural/small town location. Spokane (where I live) is much cheaper than Seattle, but has escalated greatly in the last several years. My property taxes will be $5,639 in 2025 on a value of $569,000 if that helps. My tax assessed value when I bought the place in 2013 was well under $200k. Would you really save that much and is it worth moving for?

[Tishabet]

Glimpse into my taxes (I'm in King County just outside the Seattle city limits):

• Last year I paid 1.05% property tax, .85% is to the county. state average is .88%
• For my boat I pay yearly excise tax of 0.5% of the assessed market value
• My sales tax is 10.4% (6.5% State, 3.9% Local). State average is 9.429%
• I pay $.53/gallon in gasoline tax

Handy sources for you:
https://taxfoundation.org/data/all/state/sales-tax-rates/
https://taxfoundation.org/data/all/state/property-taxes-by-state-county/

[jyl]

If you are self-employed, WA has a gross receipts tax calculated on your gross revenue that can be significant. I've looked into moving from OR to WA and concluded that this tax, plus other things, largely eliminates the financial/tax reason to make the move. I'd be financially/taxwise better off moving out of Multnomah County OR but staying in OR. But financials/taxes aren't everything so I stay.

If I were retired, or a W2 employee, the move to WA would make more financial/tax sense.

Do note WA now has a capital gains tax, though I'm unclear on its status or details.

[fanaudical]

Thanks for the info, everybody. I will look at those links. A couple of data points from my view:

I don't buy much; I can deal with a sales tax.

My property tax is ~1.98% of assessed value.

Oregon is taxing my capital gains at the same rate as my earned income. My Oregon income tax rate for this past year was ~9%.

Taxes are my #1 expense - and are now almost 2/3 of my yearly expenditures. And I see Oregon just trying to grab more and more...

[jhynesrockmtn]

Originally Posted by fanaudical

Thanks for the info, everybody. I will look at those links. A couple of data points from my view:

I don't buy much; I can deal with a sales tax.

My property tax is ~1.98% of assessed value.

Oregon is taxing my capital gains at the same rate as my earned income. My Oregon income tax rate for this past year was ~9%.

Taxes are my #1 expense - and are now almost 2/3 of my yearly expenditures. And I see Oregon just trying to grab more and more...

This is the capital gains tax in WA

The capital gains tax in Washington state is a 7% tax on profits from the sale of long-term assets (owned for over a year before selling them) over $270k for the 2024 tax year. For 2023, this number was $262,000.

[Cajundaddy]

The tax burden matters but is only one part of the puzzle. WA and OR seem fairly comparable depending on whether you are in a high income or high property value situation. A far lower state tax burden can be found to the east in UT, ID, or WY. Factor in quality of life, quality of education, cost of energy, weather, crime rate, quality of infrastructure (roads, dams, bridges, water, electrical grid), favorable business environment, etc. Weigh all of the relevant factors and see if something stands out to you.

We moved from one of the highest cost of living and tax burden states(CA) to one of the lower (ID) a few years ago and the overall mix has been better than expected. Find your bliss.

https://wallethub.com/edu/states-with-highest-lowest-tax-burden/20494

[afterburn 549]

I left there 16 years ago as it was less than friendly to my business.
Let's call it hostile with their state tax SOP.
I was audited twice in less than 5 years, and both times they ended up paying me.

[afterburn 549]

spamer ????

[jyl]

Originally Posted by afterburn 549

I left there 16 years ago as it was less than friendly to my business.
Let's call it hostile with their state tax SOP.
I was audited twice in less than 5 years, and both times they ended up paying me.

That’s another reason I won’t move my office from OR to WA. WA regulator is famously a PITA, my lawyer says, OR regulator is reasonable, my lawyer says. I got inspected by OR then six months later by WA. I actually found both examiners pretty okay, but the WA guy dinged me for some ticky tack stuff. Like every logo, document, email, etc I produce has to include “LLC” after my business name, it’s considered deceptive to omit that. But he was nice enough to say I could use up my non-compliant business cards rather than throwing them out.

[afterburn 549]

It is unfortunate.
Most people in government have never had to work, or had a real job, much less own their
own business!
They think tax money happens out of thin air and charge more.

[fanaudical]

Originally Posted by afterburn 549

I left there 16 years ago as it was less than friendly to my business.
Let's call it hostile with their state tax SOP.
I was audited twice in less than 5 years, and both times they ended up paying me.

Afterburn - Was this your experience in Oregon or Washington?

[afterburn 549]

Washington.

[fanaudical]

Good to know - thank you.