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So oregon has no sales tax and washington state has no income tax...perfect place: a border town of the two?
you are extremely close to portland and the oregon, a state that does not have a sales tax...as a result, you purchase your automobile, televisions, and other such things in oregon
at the same time, you live in washington state which does not have an income tax...so you file your taxes in washington state and get the benefit of living in washington without feeling its high sales tax
that would be about thirty minutes to an hour to portland and about the same to seattle...
@duke casey: if you live in a place like california or new york, you already pay both taxes on top of the sales and income tax...coming from such places you actually save money
18 Answers
- E. F. HuttonLv 71 decade agoFavorite Answer
It's not such a bad idea if you're tying to avoid paying taxes.
One trouble is a sales tax is a dramatically more effective and practical method of taxation than income taxes. Always try to live where you can avoid income taxes. www.fairtax.org
States often have use taxes, where you are supposed to make up the difference in sales taxes not paid. You have to check with the tax laws there and look at things like property and vehicle taxes and how they're collected. States often have laws and agreements with neighboring States regarding income taxes. Remember income taxes are withheld from pay and this is reported to the government. So it's important where you work, not only where you live.
- StephanieLv 45 years ago
Well, each state take their tax's in various ways, but you need to be sure if one state does not require you to file tax return or Sales Tax, still, that state will make their money from you in another way!!. For example, people who are self employee and work in Washington, in general, they pay Federal Tax plus self employment tax, But they do not file Individual tax return for Washington State. HOWEVER (Here is the catch), for individuals to practice business in Washington, they must apply for Business License where the Fee will be equal (not less than) the state tax return. Those states who claim they do not charge their residents with State tax, they do charge their residents with BIG business License fee. Some states do not charge Sales tax for groceries, others do. Oregon has one of the highest income tax rates in the nation for this reason, they do not charge Sales Tax. Washington have Sales Tax and Business License Fees more than other state as it does not require its residents to file income tax returns. A sales tax only taxes non-essential, non grocery items. Essential groceries and hygiene items could be considered exempt, and therefore, the people that can't afford a sales tax wouldn't be affected.
- 1 decade ago
This is exactly why a lot of people who work in Portland live in Vancouver. Although, like others have said, you'll still pay some sales & income taxes anyway if you work in Oregon. The best thing is probably to work in Washington and shop in Oregon.
Source(s): 10-year Oregon resident. - Anonymous1 decade ago
Actually when you purchase a vehicle in Oregon and are a WA resident you pay that sales tax. And for those WA residents working in OR you can rarely get that money back. Oregons taxation is stupid...they tax you BEFORE the FEDS take their cut....
Clark County in WA pays the second greatest amount of income taxes for the entire state of Oregon.
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- 7 years ago
not to change the subject, but debbiep says new hampshire has no sales or income tax yet their local government is capable of operating their states affairs successfully so why do the others find it necessary to tax their working citizens with income and sales taxes, i think our governments are way out of line with their authority to tax, which i'd like to add that most of that authority is self appointed and unconstitutional, proven by joe banister a former irs agent who has exposed all of this thats why he is EX irs agent
- Anonymous1 decade ago
That's why economy is so much better in both WA and OR, than in California, where they have 10% income tax and 10% sales tax.
- ?Lv 41 decade ago
Man that sounds good to me. Our tax is 6% income and 7% sales. Add that to Federal income and social security taxes as well as Obamacare costs and I don't have much left to play with.
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- davidmi711Lv 71 decade ago
When you register a vehicle in Washington that was not purchased in Washington you have to pay the sales tax on the vehicle.
- 1 decade ago
You will still need to pay "use tax" to the state of Washington.
Source(s): Government always finds a way to get "theirs"