move to vancouver to take advantage of no income tax? (Camas: insurance, appliances)

[TheOrca]

Washington has no income tax

[ocoilslick]

If you live in Washington state and pay no federal income tax, will they put you in jail in Washington? I don't see what the big deal about no state income tax is. Many states it is like 1 or 2% They just make up for it by charging you elsewhere, like sales tax, property tax, DMV fees and such. WA is expensive to live in, and some claim the people are weird. Do as you like.

[TheOrca]

Federal income tax is not state level

Sales tax models are more weighted on taxation of buying consumer products; often groceries and stuff are exempted.

It's a more sensible taxation system where you get taxed only on what you buy.

Why would you tax someone on creating productivity? Lots of people don't spend every penny they make so a sales tax makes sense in terms of taxing somebody proportional to what they consume.

I like Washington; the people are one of my favorite things

I think Washington is actually affordable rn, but will soon be very very unaffordable. The weather is only getting nicer

[notnamed]

Originally Posted by ocoilslick

If you live in Washington state and pay no federal income tax, will they put you in jail in Washington? I don't see what the big deal about no state income tax is. Many states it is like 1 or 2% They just make up for it by charging you elsewhere, like sales tax, property tax, DMV fees and such. WA is expensive to live in, and some claim the people are weird. Do as you like.

It's 9% state income tax right across the river...

I moved here from Ohio and the difference in taxes alone covered the other cost of living differences. Ohio had state AND city income taxes and property taxes 3x the rate here with a comparable sales tax(7.5%) too.

[silibran]

Originally Posted by gstead245

My company has couple of locations throughout the pnw. I was wondering if it would be a good idea to transfer my job to vancouver area and buy a house there. Advantages I am seeing if I live in vancouver there would be no income tax so I can retain more of my money and I can just drive down to portland which is close by for my groceries and such to take advantage of no sales tax. I currently live in Oregon which has high income tax.

I feel this is a lot better than my current living situation where I live in a small town that doesn't have a lot of options. I drive to portland whenever I want some fun. All I see are pros so far. Too good to be true?

There is no state income tax. We pay our share of Federal income tax.

Property taxes are high here, as is sales tax. You would need to research this thoroughly before making a move. You will be taxed in this state, but not on groceries. As a resident of WA you need to pay your share of sales tax, anyway. Many of us do buy retail in OR, because shopping is better there in general. But you are responsible for paying tax on large purchases made out of state.

If you work in OR, you will pay OR income tax even if you live in WA.

Housing is cheaper here than in PDX—there is that. But it might be more expensive than where you live.

You are responsible for doing due diligence. In our case, we moved from MO where we paid state income tax and county personal property tax. But our real property tax was low. We found our car insurance cheaper here, but our property taxes quite high. We had paid sales tax as well. We figured that in terms of costs that we broke even. Our fixed costs and taxes would have been higher if we had moved to PDX.

Commuting to Portland is a pain. But you like to drive off hours, right? It still can be a pain. But it might be worth it to you. But you will have to do the research to know for yourself.

[ocoilslick]

Originally Posted by notnamed

It's 9% state income tax right across the river...

I moved here from Ohio and the difference in taxes alone covered the other cost of living differences. Ohio had state AND city income taxes and property taxes 3x the rate here with a comparable sales tax(7.5%) too.

Never lived in Ohio. Can only speculate about taxes there. I do know parts of OH have some of the highest property taxes in the US that I have ever seen.

[MtnSurfer]

Originally Posted by ocoilslick

Never lived in Ohio. Can only speculate about taxes there. I do know parts of OH have some of the highest property taxes in the US that I have ever seen.

If you've ever lived on the west coast, WA is definitely a significant savings in terms of income tax. Since the west coast is where I want to live, I'm saving 9-10%.

Yes, of course there are federal taxes and other taxes. No one ever questioned that. But overall, it's a significant net savings. Now, you could live in TX, NV, SD or other areas with really low income tax. But that really has nothing to do with the original question. The OP is talking about the west coast and more specifically the PNW.

Derek

[StealthRabbit]

If lower taxes and west coast is the plan... head to AK (No income tax, No sales tax, No 'California fever' (manipulated electorate).

+/- (i.e. not a CHEAP place to live, but has it's advantages)

[diver110]

I am not a SALT specialist, but I have been told that .gGenerally, if you live in two states, the state where you spend the most time is where you will be deemed to reside and taxed, especially if you are there over 6 months. If you live in three states, none over 6 months, it is where you are "domiciled" that counts as your residence, i.e. where you pick to be your primary residence. If your employer is located exclusively in Portland, based on what I have been told, your income will be subject to OR taxes.

[StealthRabbit]

Depends where you physically perform your work.

But not always so simple...
I can live in WA, and work for a WA based employer (Each tax free), but if I physically perform work for that employer from Oregon..... I pay Oregon incone tax on the wages earned while on Oregon soil. I do this all the time when in truck driving role. If my WA employer is doing a contract job for City of Portland, I pay Oregon tax on my entire day's wages, tho I may be back and forth across the bridge 6x / day. If our contract is with the City of Vancouver I pay no Oregon income tax, even if driving to Oregon 6x / day for supplies.

If I live in WA and perform all my work from WA for my CA based employer, I pay no CA income tax. If I regularly fly to CA for a staff meeting, or for a few week's work in CA. I pay CA income tax for the time physically working from CA, for CA based employer. If only doing this occasionally ( not on a regular schedule), my CA based employer will likely not do CA reporting and withholding. CA has very strict reporting requirements, available on their DOR website. If you exceed X days working within CA, you may trigger their domicile requirement. Some states also take into consideration your property ownership, and % of spending done while in that state. I.e. tread lightly, keep it short, keep your DL and voter registration, and utility connection in domicile state.