Retire in Oregon: 2026 Tax & Cost of Living Guide
Lowest estate tax exemption ($1M) in the nation. No sales tax. High top income tax (9.9%). Best for retirees below the estate tax threshold who value no sales tax.
State income tax
Progressive — top rate 9.90%
Social Security
Not taxed
Estate tax
Yes
Property tax
0.93%
How Oregon Taxes Retirement Income
- Social Security
- Not taxed
- Public pensions (state/federal)
- Taxed
- Private pensions
- Taxed
- 401(k) / IRA withdrawals
- Taxed
Exemption / exclusion
Retirement income credit phased out above moderate income thresholds
What Would You Pay in State Income Tax?
Rough estimates at the top marginal rate (actual effective rate will be lower for most retirees due to brackets, exemptions, and standard deduction):
| Annual Retirement Income | Estimated State Tax | Effective Rate |
|---|---|---|
| $50,000 | $4,950 | 9.9% |
| $100,000 | $9,900 | 9.9% |
| $200,000 | $19,800 | 9.9% |
Estate & Inheritance Tax
State Estate Tax
Exemption: $1,000,000 · Top rate: 16%
Federal estate tax exemption is $13.61M (2024) — Oregon's lower threshold means more estates are subject to state tax than federal.
Top Cities for Retirees in Oregon
States With No Income Tax
Compare Against Other States
All 50 US States + DC
Ranked by tax-friendliness for retirees. Grouped by income-tax type.
Retirement Methodology Calculators
How much do the big names actually say you need? See each guru's assumed return and withdrawal rate, side by side with academic defaults.
FIRE Calculator
See how much you need to retire — in Oregon or anywhere else.
Safe Withdrawal Rate
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Tax rates and programs are subject to change. Data is current for 2024–2025. Always consult a qualified tax professional before making relocation decisions.