Toronto to Portland: No Sales Tax, the Multnomah County Layer, and a Near-Lateral Move

Portland's tech, semiconductor, and outdoor-industry employers recruit Toronto's engineers and brand professionals. The tax picture is nearly lateral on income: Ontario's combined top rate of about 53.5% becomes about 51% inside Portland or about 47% in Washington County. Oregon has no sales tax, and Oregon's estate tax exemption is $1 million.

Key takeaways

• Ontario's roughly 53.5% top rate, including the provincial surtax, sets the departure tax. On a $300,000 unrealized gain, about $80,000.
• Oregon's top rate is 9.9%; Portland's county and Metro taxes push the combined top rate near 51%.
• Oregon follows the treaty's RRSP deferral.
• 13% HST becomes zero sales tax.
• OHIP ends on permanent departure. Keeping the Toronto home means NR6, Section 216, and the Vacant Home Tax if empty. Oregon's estate tax exemption is $1 million.

The Ontario departure

Departure tax applies to non-registered investments, private company shares, crypto, and foreign property at fair market value on the departure date. Ontario 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 for illiquid assets. The Toronto home: sell it under the principal residence exemption, rent it under NR6 and Section 216, or face Toronto's Vacant Home Tax if it sits empty. OHIP ends on permanent departure.

Portland's side

Oregon's graduated state income tax tops out at 9.9% above roughly $125,000 (single); Portland residents in Multnomah County also pay the Preschool for All tax (1.5% above $125,000 single, 3% above $250,000) and the Metro Supportive Housing Services tax (1% above $125,000), which together push the combined federal, state, and local top rate near 51%; no sales tax anywhere in Oregon; property tax near 1% effective; estate tax on estates above $1 million with rates from 10% to 16%.

The RRSP in Oregon

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.

Equity

RSUs vesting after the move are split by working days between Canada and the US; the state and any local authority tax their share. Both payrolls may withhold on the full amount; the excess is recoverable on the first-year returns.

Who makes this move

Toronto software engineers to Portland's tech employers, Ontario hardware engineers to Intel Hillsboro, Toronto brand and marketing professionals to Nike and Columbia, and Ontario clean-energy staff to Portland's renewable energy firms.

Worked example

A Toronto software engineer moves to Portland on June 30 with $220,000 of unrealized gain in a non-registered account, $450,000 in an RRSP, RSUs vesting after the move, and a Toronto condo sold in the departure year.

• Departure tax. $220,000 gain, $110,000 taxable, at about 53.5%: roughly $59,000. Cheaper than Oregon's ordinary-rate treatment later.
• Condo. Sold as a resident under the principal residence exemption.
• RSUs. Vests split by working days; Oregon and Multnomah County tax their share.
• RRSP. No tax on departure; federal and Oregon deferral.
• Portland. Combined top rate about 51%. HST 13% becomes sales tax zero.

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

"…plus 9.9% of the excess over $125,000." — Oregon Department of Revenue, 2025 tax rate charts, Form OR-40, https://www.oregon.gov/dor/programs/individuals/pages/pit.aspx

There are 5 Ontario income tax brackets and 5 corresponding tax rates. — Government of Ontario, Personal income tax, https://data.ontario.ca/dataset/personal-income-tax-rates-and-credits

Income over $125,000 is taxed at rate of 1.5% and an additional 1.5% (3% total) on income over $250,000. — Multnomah County, Preschool for All Personal Income Tax, https://www.multco.us/finance/preschool-all-personal-income-tax

Practitioner note

Toronto-to-Portland is the corridor where the side of the county line matters most: Multnomah County's two local income taxes add up to 4 points at the top, and Washington County (Beaverton, Hillsboro) has neither. We run the address before the client signs a lease.

See also: Weighing Florida instead? See the Canada-to-Florida guide, or the same city's Toronto to Miami guide.

Next step

Fairlight prepares the Ontario departure return, the property filings, and the first-year federal, Oregon, and local returns for Portland clients. See cross-border pricing or book a call.