Cigarette Taxes By State 2011

What's the difference in taxes between Oregon and Washington state?
Trying to decide between relocating in either Oregon or Washington state. Have varying opinions on the taxation between these states. Would like to get the skinny on taxation.
Best Answer - Chosen by Voters
Oregon: Sales Taxes

State Sales Tax: None

Gasoline Tax: * 25.0 cents/gallon

Diesel Fuel Tax: * 24.3 cents/gallon

(Local fuel taxes may add 1 to 3 cents)

Cigarette Tax: $1.18/pack of 20



Personal Income Taxes

Tax Rate Range: Low - 5%; High - 11%. Starting in tax year 2009 the personal income tax rate is 10.8% on taxable income over $125,000 but not over $250,000, and 11% on taxable income over $250,000. For tax years after 2011, the highest rate will be 9.9% on taxable income over $125,000.

Income Brackets: ** Lowest - $3,050; Highest - $250,000

Number of Brackets: 3

Personal Tax Credits: Single - $169; Married - $348; Dependents - $169

Additional Credits: Credit equal to 40% of federal credit

Standard Deduction: Single - $1,865; Married filing jointly - $3,735; Deduction greater if age 65 or older.

Additional Deduction: Single over 65 - $1,200; Married over 65 filing jointly $2,000

Medical/Dental Deduction: Full only for age 59 or older, if itemized. Oregon allows a tax credit on long-term care insurance premiums. The credit is the smaller of 15% of premiums paid or $500.

Federal Income Tax Deduction: $5,000 ($2,500 if married filing separately)



Washington:

Sales Taxes

State Sales Tax: 6.5% (food and prescription drugs exempt) Local taxes may increase total tax to 9.5%. Tax is 6.8% on sales and leases of motor vehicles.

Gasoline Tax: 37.5 cents/gallon

Diesel Fuel Tax: 37.5 cents/gallon

Cigarette Tax: $2.025/pack of 20



Personal Income Taxes

No state personal income tax

Retirement Income: Not taxed.



Property Taxes

Property taxes account for about 30% of Washington's total state and local taxes. Properties are appraised at 100% of fair market value. A property tax exemption program is available for persons age 61 or older, or persons unable to work due to a physical disability. The property, which can include up to an acre of land, must be owner/buyer occupied.



The state offers a property tax exemption program for those whose household income does not exceed $35,000. If your income is between $35,000 and $40,000, you may qualify for the tax deferral program. If your annual income for the application year does not exceed $35,000 your home will be exempt from all excess and special levies approved by voters. If your household income is between $25,001 and $30,000, you are exempt from regular levies on $50,000 or 35% of the assessed value, whichever is greater (but not more than 70,000 of the assessed value. For more information, call 360-570-5867.



The state's tax deferral program works in conjunction with the exemption program. A senior citizen or disabled person may defer property taxes or special assessments on their residence if they meet certain age, disability, ownership, occupancy and income requirements. The state pays the taxes on behalf of the claimant and files a lien on the property to indicate the state has an interest in the property. The deferred taxes must be repaid to the state plus 5% interest when the owner dies, sells or moves from the home, or doesn't have sufficient equity in the property. Qualified people may participate in both or one of these programs.



For more details on property taxes, call 800-647-7706.



Inheritance and Estate Taxes

Washington replaced the inheritance tax in 1982 with an estate tax. Effective January 1, 2009 the Washington State filing threshold is different from the federal filing threshold for completing the estate tax return. If the decedent has a gross estate or a taxable estate plus taxable gifts of $2,000,000 or more, the estate is required to file a Washington State estate tax return. If the decedent has a gross estate or taxable estate plus taxable gifts of $3,500,000 or more, the estate is required to file a Washington State estate tax return.



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