State Income Tax
: 5% to 9.9% State Sales Tax
: None Estate Tax/Inheritance Tax
First, the upside: There's no state sales tax in the Beaver State. But Oregon's top income tax rate of 9.9% is the second-highest in the nation -- between Hawaii's 11% rate and California's 9.3%. The majority of Oregonians pay a 9% rate on their taxable income, which kicks in at $7,950 for individuals and $15,900 for married couples. Although the Beaver State does not tax Social Security benefits, it does tax public and private pensions, IRAs, and 401(k) and other retirement plan distributions. Oregonians 62 and older with incomes of $22,500 or less ($45,000 or less for married couples) may qualify for a tax credit to reduce the amount of retirement income that is taxed. Oregon also jettisoned its inheritance tax, replacing it with an estate tax applied to assets in excess of $1 million.
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