Oregon vs Arizona: Tax & Cost Comparison

2026

Side-by-side Oregon vs Arizona comparison: state income tax, sales tax, property tax, cost of living, and minimum wage for 2026. Pacific Northwest to Sun Belt — OR's progressive 4.75%-9.9% + no sales tax against AZ's 2.5% flat + 5.6% sales tax. Common Portland-Phoenix relocation.

Written and reviewed by Konstantin Iakovlev · Methodology · Updated

Disclaimer: This calculator is for informational purposes only and does not constitute tax, financial, or legal advice. Results are estimates based on the information you provide and current rates. Always consult a qualified tax professional or financial advisor for advice specific to your situation.

Tax / Cost Factor Oregon Arizona
State income tax (top rate) 9.90% (progressive) 2.50% (flat)
State sales tax 0.00% 5.60%
Avg. effective property tax 0.87% 0.54%
Minimum wage (2026) $15.05/hr $15.15/hr
State Disability Insurance (SDI) No No
Paid Family Leave Yes No
Median home price (Q4 2025) $510,000 $437,000
Foreclosure type mixed non-judicial
BEA Regional Price Parity (2024) 100.7 102.6
Median household income (2024) $76,630 $73,450
Median 2-bedroom rent (Q4 2025) $1,900/mo $1,690/mo

Worked example: $75,000 single filer, 2026

For a single filer earning $75,000 in 2026, the rough state-tax burden comparison:

  • Oregon: estimated state income tax ≈ $5,198, plus federal income tax (≈ $7,300 at 22% marginal), FICA $5,738, sales tax 0.00% on consumption.
  • Arizona: estimated state income tax ≈ $1,313, plus federal $7,300, FICA $5,738, sales tax 5.60% on consumption.

Property tax depends entirely on home value. On a $400,000 home: Oregon ≈ $$3,480/year; Arizona ≈ $$2,160/year.

Combined annual state burden (income + property on $400K + 6% of $50K consumption sales tax) — Oregon: ~$8,678; Arizona: ~$6,273.

Why this comparison? Pacific Northwest to Sun Belt — OR's progressive 4.75%-9.9% + no sales tax against AZ's 2.5% flat + 5.6% sales tax. Common Portland-Phoenix relocation.

Frequently asked questions

Which is cheaper to live in: Oregon or Arizona?

By BEA Regional Price Parity (2024), Oregon has a cost-of-living index of 100.7 and Arizona is 102.6 (US average = 100). Median household income: Oregon $76,630, Arizona $73,450. Median 2-bedroom rent: Oregon $1,900/mo, Arizona $1,690/mo. Oregon is the lower-cost state by this measure.

Does Oregon or Arizona have lower income tax in 2026?

Arizona has a top income-tax rate of 2.50%; Oregon has 9.90%. Arizona is lower at the top bracket.

What about property taxes in Oregon vs Arizona?

Oregon's average effective property tax rate is 0.87% (e.g., $3,480/year on a $400,000 home). Arizona's rate is 0.54% ($2,160/year on $400K). Arizona has the lower property tax burden.

Where is the minimum wage higher: Oregon or Arizona?

Oregon's 2026 minimum wage is $14.70/hour; Arizona's is $14.85/hour. Arizona is higher.