Oregon vs Arizona: Tax & Cost Comparison
2026Side-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.
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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.