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Of the retirement questions, where you retire is just as important as any. The financial and lifestyle implications of your retirement destination can have a huge impact on how your golden years play out.
With that in mind, I want to share a few considerations for anyone who is looking at retiring in my home state of Oregon. We have a lot to offer!
Still, the right decision for you depends on your situation, so here are a few factors to consider.
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Tax facts about Oregon
Oregon does not have a sales tax. The average person spends over $1,300 per year on sales tax, but not in Oregon. We are one of only five states with no sales tax.
Oregon does not tax Social Security. Oregon does not tax income from Social Security. Keep in mind, while Oregon will not tax your Social Security, your benefits may still be subject to federal income taxes.
There are several free online calculators you can use to help estimate your state tax liability, like this one from SmartAsset.
Oregon taxes pensions. Only 16 states do not tax pensions, and Oregon is not one of them.
Oregon taxes 401(k)s and IRAs. Oregon taxes withdrawals from 401(k)s, pensions and IRAs at the full state income tax rate. (Only 13 states do not tax retirement distributions.)
Oregon does not have an inheritance tax. There is no state inheritance tax in Oregon, which can help protect anything you leave to your loved ones or to charity.
Oregon has the lowest estate tax exemption in the country. While we do not have an inheritance or gift tax, one thing we do have is the lowest estate tax threshold of any state. That may sound like a good thing, but it’s not. It means that if your estate is worth more than $1 million, it will be subject to an estate tax of 10% to 16%.
But we’re working on this one. Legislation is in the works to raise the estate tax floor to $2.5 million.
For more information on estate planning in Oregon, you can read this guide from my firm.
Oregon does not have a gift tax. Any gifts you give while you are living will not incur a state-level gift tax. That being said, the annual federal gift tax ($19,000 per recipient in 2026) will apply. Individuals (not joint filers) must file IRS Form 709 if they exceed the annual exclusion per person.
Health facts about Oregon
Oregon has a higher-than-average life expectancy. Oregon has the 18th highest life expectancy in the nation at 77.4 years.
The cost of Medicare in Oregon is a mixed bag. A Medicare Advantage plan in Oregon costs $17.73 per month on average, putting it in the top 20 highest premiums for 2026.
On the other hand, Medicare Part D costs $39.45 per month, which is the lowest average premium in the country.
Health care in Oregon is highly rated. In a report that examined hospital quality, Medicare quality, nursing home quality and preventable hospital admissions, U.S. News & World Report ranked the quality of Oregon’s health care as the sixth best in the nation.
However, this can vary, depending on where you live in the state.
Lifestyle facts about Oregon
Oregon has unmatched natural beauty. OK, I may be a little biased here, but I’ve lived around the world, including South Africa and Australia, and few sights take my breath away like the view from the top of Cape Perpetua. Just stunning!
Plus, all 363 miles of our coastline are public and packed with great places for whale watching, hiking and exploring.
Oregon has a temperate climate. The high in summer rarely gets above the mid-80s, and the winter low rarely drops below 30 degrees. Not too hot, not too cold. It’s just right.
You might be thinking, “Doesn’t it rain a lot in Oregon?” We do have that reputation, but we’re actually No. 35 in terms of annual precipitation, according to World Population Review. Even Texas got more rain than we did last year.
Oregon has the 11th-highest population of people age 65-plus. When you combine the beauty and the climate and the tax-friendliness of Oregon, it’s easy to see why roughly 1 in 5 people in Oregon are age 65 or older.
Oregon is a great place to retire, but like anywhere, it requires careful financial planning. With a clear plan in place and the help of a trusted financial adviser, your dream to retire in Oregon can become a reality.
