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Moving to Oregon
Q.   When do I become a resident of Oregon?
     
    A. You are considered an Oregon resident if all of the following are true:
  1. You think of Oregon as your permanent home; and
  2. Oregon is the center of your financial, social, and family life; and
  3. Oregon is the place you intend to come back to when you are away.
For more information on residency, read our question and answer page.


     
Q.   What Oregon tax return do I need to file?
     
    A. For the first year you move into Oregon, file Oregon Form 40P, part-year resident return. In future years, you will file Oregon Form 40 for full-year residents.


     
Q.   If I become an Oregon resident, is my retirement income taxable?
     
    A. Yes, if you change your residence from your former state to Oregon, your pension income, along with all other income regardless of the source, will be taxed by Oregon.

Depending on your age and income, you may be entitled to a retirement income credit on your Oregon return.
 
If you receive a U.S. government pension, you may be entitled to subtract part or all of that pension on your Oregon individual income tax return.


     
Q.   If I sell my home in another state after moving to Oregon, am I subject to Oregon income tax on the sale?
     
    A. Oregon follows federal law as it applies to the gain on the sale of a residence. Oregon will not tax your gain of $500,000 or less (or $250,000 for married filing separately) if you meet the federal qualifications. Oregon will tax gains over $500,000 ($250,000 if married filing separately) on the sale of your home or gains that are taxed by federal law.


     
Q.   Are there other taxes I need to pay if I become a resident of Oregon?
     
    A. Yes. If you purchase property in Oregon, you will pay local property tax. Each county determines its own property tax rate.
 
There are also taxes for motor vehicle licensing; driver licensing; fuels; and hunting and fishing licenses. For more information, see our brochure, "A Summary of Oregon Taxes." You may also want to go to the websites for: Oregon Department of Motor Vehicles, Oregon Department of Fish and Wildlife, or Oregon Department of Transportation.


     
Q.   Will Oregon tax my Social Security benefits or my railroad retirement benefits?
     
    A. No. Oregon does not tax Social Security or railroad retirement benefits.


     
Q.   Should I make estimated income tax payments to Oregon?
     
    A. Generally, if you expect to owe Oregon income tax of $1,000 or more, you should make estimated income tax payments to avoid paying interest for an underpayment of Oregon income tax. See our estimated income tax instructions for Form 40-ESV to determine if you should make estimated payments, and how much you should pay.
 
If you have wages from which Oregon income tax is withheld, you may want to increase your Oregon withholding rather than make estimated income tax payments. Ask your employer to increase your Oregon income tax withholding.