Most cost-of-living indexes compare prices and leave out income taxes — and taxes can flip which city is cheaper. Portland, Oregon’s 2024 price level is 105.4 against Seattle’s 111.1 (BEA, US = 100). For a single renter earning $90,000, Portland’s lower rent still wins: it leaves $25,303 a year against Seattle’s $23,583. But Oregon taxes wages and Washington does not, so the advantage shrinks as pay rises. Above roughly $109,000, Seattle leaves more; at $150,000 it leaves $4,920 more.
Why price indexes leave taxes out
The Bureau of Economic Analysis computes Regional Price Parities (data year 2024, released February 19, 2026) to measure what the same basket of goods, rents, utilities and services costs in each place. Taxes are not part of that basket. A metro in a state with an income tax can look cheap on prices and still leave you with less after the state’s share.
Seattle vs Portland at $90,000
Single adult, renting a one-bedroom at HUD Fiscal Year 2027 Fair Market Rent, one car, USDA Moderate-Cost food plan (August 2026), 2026 taxes:
| Annual line | Seattle, WA | Portland, OR-WA |
|---|---|---|
| BEA price level, all items | 111.1 | 105.4 |
| Federal income tax + Social Security + Medicare | $17,855 | $17,855 |
| State income tax | $0 | $6,277 |
| State payroll taxes | $1,248 (paid leave, long-term care) | $630 (paid leave, transit tax) |
| Metro SHS + Multnomah PFA local taxes | $0 | $0 (below thresholds) |
| Total taxes | $19,103 | $24,762 |
| Rent, 1-bedroom Fair Market Rent | $26,160 ($2,180/mo) | $19,596 ($1,633/mo) |
| State sales tax | $405 | $0 |
| Left over | $23,583 | $25,303 |
Sources: HUD FY2027 Fair Market Rents; BEA RPP 2024; 2026 taxes from the MoveMath engine. Food, fuel and other spending are included in “left over” but not shown.
Portland’s rent is $6,564 a year lower; its taxes are $5,659 higher. Oregon has no general sales tax, which adds a few hundred dollars back. Net result at $90,000: Portland by $1,720. The matching salary for a Seattle-to-Portland move at $90,000 is $87,176. Try your own income in the take-home pay calculator.
Where the ranking flips
| Single earner’s pay | Left over in Seattle | Left over in Portland |
|---|---|---|
| $60,000 | $2,244 | $6,057 |
| $90,000 | $23,583 | $25,303 |
| $110,000 | $37,375 | $37,223 |
| $150,000 | $64,397 | $59,477 |
Oregon’s top rate of 9.9% starts at $125,000 of taxable income, and above $125,000–$128,000 Portland’s two local income taxes begin. Washington’s payroll premiums rise with pay but stay small, so each extra dollar earned is worth more in Seattle. A price index cannot show this, because it does not change with your income.
Nashville and Dallas: two no-tax states
When neither state taxes wages, prices and rent decide it:
| Metro, $90,000 single | 1-BR Fair Market Rent | BEA price level | State income tax | Left over |
|---|---|---|---|---|
| Nashville, TN | $1,650/mo | 96.3 | $0 | $33,194 |
| Dallas, TX | $1,536/mo | 103.1 | $0 | $33,881 |
| Chicago, IL-IN | $1,780/mo | 103.6 | $4,310 | $25,965 |
Dallas has the higher price index but lower rent, and the two land within $700 of each other. Chicago’s price level is close to Dallas’s, but Illinois’s 4.95% income tax and higher rent leave $7,916 less.
Tax systems an index never sees
- Oregon: progressive rates from 4.75% to 9.9%, plus Portland’s Metro and Multnomah County taxes on higher incomes.
- California: rates from 1% to 12.3%, plus a 1% Behavioral Health Services Tax on taxable income over $1 million (California Franchise Tax Board), and a state disability insurance payroll tax.
- New York: state rates from 3.9% to 10.9%, plus New York City’s resident income tax of 3.078% to 3.876% for city residents.
- Illinois: a flat 4.95% after a personal exemption.
- No tax on wages: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming. New Hampshire’s interest and dividends tax was repealed for tax periods beginning after December 31, 2024 (NH Department of Revenue Administration).
What to use instead of an index
- Enter your pay and household in the cost of living calculator.
- Set city A to where you live and city B to the city you are considering.
- Compare what is left over in each, not the gross pay or an index score.
- Check the tax lines in the take-home pay calculator, which shows federal, state, payroll and local taxes separately.
Full budgets are on the Seattle and Portland metro pages, with state-level detail for Washington and Oregon.