Live in Vancouver, Work in Portland: The Tax Rules

1Live in Washington, work in Oregon

• Oregon income tax on your Oregon wages, withheld by your employer. You file Form OR-40-N.
• Oregon transit tax: 0.1% of wages.
• Paid Leave Oregon: 0.6% of wages.
• Portland-area taxes if you work in Metro or Multnomah County and earn enough (below).
• Washington sales tax at home: 8.9% in Vancouver, 8.0% in unincorporated Clark County.

2Live in Oregon, work in Washington

• Oregon income tax on all your income. A Washington employer may not withhold it, so you may need estimated payments.
• Oregon transit tax: applies to residents wherever they work.
• Washington paid leave: about 0.81% of wages.
• WA Cares: 0.58% of wages, unless you get the exemption for people who live outside Washington.
• No sales tax on what you buy in Oregon.

3Portland-area income taxes

Only for higher incomes. Metro: 1% of taxable income over $128,000 single or $205,000 joint (2026). Multnomah County Preschool for All: 1.5% over $125,000 or $200,000, plus 1.5% more over $250,000 or $400,000.

Both apply if you live there or work there. Pay for work from a home office outside the area generally isn't covered.

4So which is cheaper?

Living and working in Washington usually wins: no income tax at all. Living in Vancouver while working in Portland saves little, since Oregon taxes those wages anyway, and adds sales tax. Housing, property tax and commute often matter more than any of this.