“Hit the Road, Jack — And Don’t You Pay [Oregon] Tax No More?”
While Oregon residents are taxed at a 9% rate on their taxable income, including capital gain income, Washington imposes no personal income tax. Not surprisingly, Oregon residents who expect to recognize substantial income in the future often ask whether they can avoid Oregon tax on the income by moving to Washington before the income is recognized. This article discusses the impact of such a move on the Oregon income tax treatment of different types of income.
This article appeared in the Summer 2009 issue of the Oregon State Bar Taxation Section newsletter.