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Texas has no income tax; Oregon’s runs up to 9.9%. But Texas funds itself with some of the highest property taxes in the country, and Oregon’s are far lower. So this move isn’t simply “higher tax” — it’s a swap, and which way it nets depends on your income.
Texas levies no personal income tax, so your pension, 401(k), and Social Security are untaxed by the state. Move to Oregon and that ordinary retirement income becomes taxable at up to 9.9%. That’s the cost side. The benefit side is real, though: Texas property taxes average roughly 1.6–1.8% of value — among the nation’s highest — while Oregon’s run about 0.84–1.08% and are capped by Measure 50. On a similarly priced home, your Oregon property-tax bill can be roughly half of what you paid in Texas.
The net depends on income. A retiree with large taxable withdrawals will likely pay more overall in Oregon — the income tax outweighs the property-tax savings. A retiree living mostly on Social Security (exempt in Oregon) with a paid-off home may actually come out ahead, because they dodge most of the income tax while banking the lower property tax and no sales tax. Run your specific mix; this is the rare move where the answer genuinely swings both ways.
| Factor | Texas | Oregon |
|---|---|---|
| State income tax | None | 4.75%–9.9% |
| Social Security | Not taxed | Exempt |
| Pension / 401(k) | Not taxed | Fully taxable |
| Property tax (effective) | ~1.6–1.8% (very high) | ~0.84–1.08%, capped by Measure 50 |
| State sales tax | ~8.25% with local | None |
| Estate tax | None | $1M exemption |
Texas summers — months over 100° in much of the state — are exactly what many retirees move to leave. The Willamette Valley offers mild summers, real seasons, green surroundings, rivers, and a coast an hour from Salem. For comfort and an active outdoor life, it’s a complete change of climate.
Two of the costs that quietly grind on Texas homeowners — high property tax and ~8.25% sales tax — both ease in Oregon. Measure 50 also lets you inherit an older home’s compressed assessed value if you buy a resale; see the Measure 50 guide.
Favor communities outside the Portland local-tax zones (every community we cover except Summerplace qualifies), manage the timing of large withdrawals, and weigh an older resale for the property-tax advantage. The retirement tax guide lays it out, and if you might consider the Washington side of the metro, the Vancouver vs. Portland tax guide shows how to keep the no-income-tax advantage you have today.
Send us your income mix and spending — we’ll model the income-tax cost against the property-tax and sales-tax savings, honestly.
Get your move analysisEducational summary, not tax or financial advice. State tax rules differ by individual situation and change over time; consult a tax professional. Figures are illustrative.