A Guide to Relocating to Oregon: Oregon Tax Rates, Lifestyle Changes, and More

Are you a California resident considering moving to Oregon? We don’t blame you! With high taxes, expensive housing, and the cost of everyday living, more and more people are choosing to leave California. 

If you’re considering relocating to Oregon from California, here is everything you need to know. 

California vs. Oregon: Why You Should Make the Move to OR

While California and Oregon both offer stunning natural landscapes and vibrant communities, Oregon stands out as the more affordable and less congested option, providing a better overall quality of life. Let’s get into it.  

Fewer People

When compared to California, Oregon has far fewer full-time residents. With its high population, California has issues with overcrowding, long commute times, and urban sprawl. As of 2022: 

• California is home to 39.03 million residents
• Oregon is home to 4.24 million residents

Conversely, Oregon has a lower population density and provides a far more peaceful and relaxing environment. Yes, California has lots of natural beauty and outdoor recreation, but Oregon has all that, too, with less congestion and more opportunities to enjoy open spaces. 

Lower State Income Tax

Where you live affects your income tax rate, and your income tax rate can significantly impact your lifestyle. Across the country, California has one of the highest income tax rates. As of 2024: 

• California has nine state income tax rates, ranging from 1% to 12.3%. Your tax rate and bracket depend on your income and filing status.
• Oregon has a graduated state individual income tax, with Oregon state income tax rates ranging from 4.75 percent to 9.9 percent.

Oregon’s tax system is simpler than California’s and is typically more manageable for middle-income earners. But of course, everyone’s income tax situation will be different, so if you want to predict what you’ll be looking at if you move to Oregon, check out this calculator tool. You enter your current and future ZIP codes and compare the tax rates. 

No Statewide Sales Tax

Sales tax can have a major impact on how much you spend, especially on big-ticket purchases. As of  2024: 

• The California statewide tax rate is 7.25%.
• Oregon does not have a general state sales tax. That’s right – the sales tax is 0%!

The lack of sales tax in Oregon means you can save hundreds or even thousands of dollars on expensive items like cars, appliances, and electronics. This is especially important to consider if you’re purchasing a home in Oregon and need to buy new appliances or plan to invest in furnishings. 

More Affordable Gas Prices

Do you find yourself driving a lot? Whether commuting to work, taking road trips to visit friends and family, or some other occasion, the cost of gas can take a major toll on your budget. As of October 2024: 

• California’s average gas price was $4.676 per gallon.
• Oregon’s average gas price was $3.677 per gallon.

Gas prices in California are consistently among the highest in the nation due to various taxes and environmental regulations. With lower taxes and fewer regulatory surcharges, Oregon offers a budget-friendly option for keeping your transportation costs down.

Better Cost of Living

Oregon offers a clear advantage over California in terms of the overall affordability of living. As of 2023: 

• The average cost of living in California is $53,082 per year.
• The average cost of living in Oregon is $47,779 per year.

Yes, the cost of living in Oregon has continued to rise over the years, but it’s still a much more affordable state than California. Housing costs, utility bills, and everyday expenses like groceries and healthcare are generally lower in Oregon, allowing residents to stretch their income further. 

Here’s Where to Live When Relocating to Oregon

Oregon is a large state, so there are many areas to consider when relocating here. We might be biased because we live here, but the Rogue Valley is hands-down one of the most fantastic regions to live in. 

Here are just a few standout features of this picture-perfect area: 

• Stunning natural beauty
• Diverse outdoor recreational opportunities including hiking, fishing, and whitewater rafting
• Mild climate with four distinct seasons
• Easy access to nearby attractions and parks, such as Crater Lake National Park
• Views of Cascade and Siskiyou mountain ranges
• Robust wine scene
• Farm-to-table restaurants
• World-class festivals, theaters, and other entertainment venues

With this perfect balance of natural beauty and vibrant culture, the Rogue Valley in Oregon offers an exceptional lifestyle that’s hard to beat, making it the ideal place to call home.

Tour a Vineyard Home For Sale in the Rogue Valley

Ready for life’s next adventure? Your dream home is here and ready for you in the heart of the Rogue Valley’s majestic wine country. This custom-built rustic modern ranch home is move-in ready and offers breathtaking views of John’s Peak out front and your very own vineyard out back. Some of this property’s other features you’re bound to fall in love with include: 

• Gables, pitches, and vertical shiplap siding
• Light-filled open floor plan
• 3,833 square feet
• 4 bedrooms, 3.5 bathrooms
• Located in a master-planned gated community in Southern Oregon – The Vineyards at Stage Pass

Ready to tour this home? Contact our real estate agent, Kathy Tinsley, today. We’re here to help you explore your options and determine if moving from California to Oregon is the perfect fit for your lifestyle.