Live in California, work in Oregon
No reciprocity: you file a nonresident return in the work state and pay its tax. Your home state gives a credit for that tax, so you pay the home state only if its tax is higher.
State income tax: $7,148 a year
Living in California and working in Oregon, you'd pay about $7,148 in state income tax on $100,000 of wages, $2,093 more than if you worked in California.
No reciprocity: you file a nonresident return in the work state and pay its tax. Your home state gives a credit for that tax, so you pay the home state only if its tax is higher.
State tax at different salaries
| Wages | To OR | To CA | Total | If you worked in CA |
|---|---|---|---|---|
| $50,000 | $3,204 | $0 | $3,204 | $1,040 |
| $75,000 | $5,055 | $0 | $5,055 | $2,775 |
| $100,000 | $7,148 | $0 | $7,148 | $5,055 |
| $150,000 | $12,805 | $0 | $12,805 | $9,705 |
| $250,000 | $22,705 | $0 | $22,705 | $19,005 |
Single filer, all wages earned in Oregon, 2026 state tax rules, standard deductions. Local income taxes not included.
What to do
- Ask your employer to withhold Oregon tax. If California's tax is higher, withhold the difference for California too (or make estimated payments) to avoid an underpayment penalty.
- File the Oregon nonresident return first, then claim the credit for taxes paid to another state on your California resident return.
- Keep a record of the days you work in each state, especially if you sometimes work from home.
Working from home for an Oregon employer
Oregon has a "convenience of the employer" rule. Limited rule: applies only to nonresidents in managerial roles for Oregon employers. Not a general remote-worker rule.
Local income taxes
- Oregon: Portland-area Metro Supportive Housing Services tax (1% over $125k single/$200k joint) and Multnomah County Preschool for All tax (1.5%/+1.5% above thresholds) apply to residents and to nonresidents on income earned in the district - relevant for WA (Vancouver) commuters. Statewide transit tax 0.1% is withheld from all wages earned in OR.
Special credit rules
- CA: CA gives residents a credit for tax paid to other states, but NOT for tax paid to AZ, IN, OR, VA (reverse-credit states - those states credit CA tax instead, so CA residents file nonresident returns there to claim it). Nonresidents of CA from states without reverse-credit get no CA credit.
- OR: Oregon uses a reverse credit with some states, notably California: California residents working in Oregon claim the credit on their Oregon nonresident return, and Oregon residents working in California claim it on the California return. Residents of Washington and other states without an income tax get no credit and pay the full Oregon tax.
Frequently asked questions
Do I pay Oregon income tax if I live in California?
Yes. Oregon taxes wages earned there by nonresidents. On $100,000 that's about $7,148.
Do I have to file taxes in both California and Oregon?
Usually yes: a nonresident return in Oregon and a resident return in California, where you claim a credit for the tax paid to Oregon. File the Oregon return first.
Will I be taxed twice?
Not on the same state-level wages. California credits the tax you pay Oregon, so your total is about $7,148 on $100,000, compared with $5,055 if you also worked in California. Local city or county taxes may still apply.
Related
- Live in Oregon, work in California
- Moving from California to Oregon
- Moving from Oregon to California
- Live in California, work in Arizona
- Live in California, work in Nevada
Rules reviewed 2026-09-24 from state revenue departments and the Tax Foundation. Estimates only; confirm with each state's revenue department.