Moving from Canada to Oregon: A High-Rate State With No Sales Tax and Two Portland Local Taxes

Oregon is the no-sales-tax state on the I-5 corridor, and Portland's tech, semiconductor, clean-energy, and outdoor-industry employers recruit Canadians from BC in particular. The tax picture is unusual: a graduated income tax topping out at 9.9%, two additional local income taxes in the Portland area that push the combined top rate near 51%, no sales tax anywhere in the state, moderate property tax, and an estate tax with a $1 million exemption, the lowest in the US.

Key takeaways

• Oregon's graduated income tax tops out at 9.9% above roughly $125,000 (single).
• Portland residents in Multnomah County pay the Preschool for All tax (1.5% to 3%) and the Metro Supportive Housing Services tax (1%) on income above $125,000 (single).
• No sales tax anywhere in Oregon.
• Property tax is near 1% effective.
• Oregon's estate tax exemption is $1 million with rates from 10% to 16%. Oregon starts from federal taxable income.

The Canadian departure

Departure tax applies to non-registered investments, private company shares, crypto, and foreign property at fair market value on the day you leave. Canadian real estate, RRSPs, TFSAs, and pensions are excluded. Report on Form T1243, list holdings on Form T1161 if the total exceeds $25,000, and post security under Form T1244 to defer tax on illiquid assets. The rate is your province's: on a $300,000 unrealized gain, roughly $72,000 from Alberta and $80,000 from Ontario, Quebec, or BC. Provincial health coverage ends around your departure date; confirm the exact date with your plan and arrange US coverage to start the same month.

US federal side

Dual-status return in the arrival year, FBAR on Canadian accounts above $10,000 aggregate, Form 8938 above thresholds, and the RRSP treaty deferral federally. The TFSA loses its tax-free status the day you become a US person; close it before crossing. Equity compensation vesting after the move is split by working days between Canada and the US.

Oregon's side

Graduated income tax topping out at 9.9%; Portland-area local income taxes (Multnomah County Preschool for All at 1.5% above $125,000 single and 3% above $250,000; Metro Supportive Housing Services at 1% above $125,000 single) that push the combined federal, state, and local top rate near 51% inside Portland and about 47% in Washington County; no sales tax; property tax near 1% effective; estate tax on estates above $1 million with rates from 10% to 16%. Oregon starts from federal taxable income and taxes capital gains as ordinary income.

The RRSP

Federally deferred under Article XVIII of the treaty and deferred for Oregon because the state starts from federal taxable income. Withdrawals face 25% Canadian withholding on lump sums, 15% on periodic RRIF payments within the treaty limit, a US foreign tax credit federally, and Oregon's graduated rates.

Who makes this move

BC software engineers to Portland's tech employers, Canadian hardware engineers to Intel Hillsboro and the semiconductor cluster, Canadian brand and outdoor-industry professionals to Nike and Columbia, Canadian clean-energy staff to Portland's renewable energy firms, and Canadian academics to Oregon's universities.

Worked example

A Vancouver software engineer moves to Beaverton on May 31 with $200,000 of unrealized gain in a non-registered account, $350,000 in an RRSP, and a Vancouver condo sold in the departure year.

• Departure tax. $200,000 gain, $100,000 taxable, at about 53.5%: roughly $53,500. Cheaper than Oregon's ordinary-rate treatment later.
• Condo. Sold as a resident under the principal residence exemption. No vacancy taxes.
• RRSP. No tax on departure; federal and Oregon deferral.
• Beaverton. Combined top rate about 47% outside Multnomah County. Sales tax 12% becomes zero. Property tax on a $650,000 home around $6,500.

Official sources

"When you leave Canada, you are considered to have sold certain types of property (even if you have not sold them) at their fair market value (FMV) and to have immediately reacquired them for the same amount. This is called a deemed disposition and you may have to report a capital gain (also known as departure tax)." — Canada Revenue Agency, Leaving Canada (emigrants), https://www.canada.ca/en/revenue-agency/services/tax/international-non-residents/individuals-leaving-entering-canada-non-residents/leaving-canada-emigrants.html

"If your taxable income is over $125,000 — your tax is $10,627 plus 9.9% of excess over $125,000." — Oregon Department of Revenue, 2025 Tax Rate Charts, https://www.oregon.gov/dor/programs/individuals/Documents/Part-year%20and%20nonresident%20tax%20rate%20charts.pdf

"You will be considered a United States resident for tax purposes if you meet the substantial presence test for the calendar year. To meet this test, you must be physically present in the United States (U.S.) on at least: 31 days during the current year, and 183 days during the 3-year period that includes the current year and the 2 years immediately before that." — Internal Revenue Service, Substantial Presence Test, https://www.irs.gov/individuals/international-taxpayers/substantial-presence-test

Practitioner note

Oregon's $1 million estate exemption is the lowest in the US and has no portability, and Portland's two local income taxes add up to four points at the top. Canadians choosing between Portland and Vancouver, Washington, across the river should see both: Washington has no income tax but a capital gains excise and a 10% sales tax.

Corridor guides

• Calgary to Portland: Clean Energy, No Sales Tax, and a Lateral Move on Income Tax
• Montreal to Portland: Gaming, the Departure Tax, and Zero Sales Tax
• Ottawa to Portland: Clean Energy, No Sales Tax, and Oregon's 9.9%
• Toronto to Portland: No Sales Tax, the Multnomah County Layer, and a Near-Lateral Move
• Vancouver to Portland: The I-5 Corridor, No Sales Tax, and Two Local Income Taxes

See also: Weighing Florida instead? See the Canada-to-Florida guide. Browse every corridor by city, province, and state.

Next step

Fairlight prepares the Canadian departure return, the first-year federal and state returns, and ongoing cross-border filings. See cross-border pricing or book a call.