Oregon Tax Strategy: Pacific Northwest Freedom Planning
Oregon has one of the highest income tax rates in America at 9.9%. Combined with federal taxes, nearly 47% can go to government. Section 7702 provides complete tax freedom.
The Oregon Tax Challenge
Oregon's 9.9% top rate is among the highest nationally. With no sales tax, the state relies heavily on income tax, making retirement income taxation severe.
✅ The Good News
- No sales tax saves on purchases
- Strong tech sector in Portland
- Beautiful natural environment
⚠️ The Challenge
- Top income rate 9.9%—among highest nationally
- Combined state/federal can approach 47%
- No sales tax offset does not help retirement
Oregon Tax By The Numbers
Section 7702: Your Tax Freedom Solution
Section 7702 of the IRS tax code creates a powerful opportunity: access your retirement funds through policy loans that are completely tax-free—at both federal and state levels. For Oregon residents, this means escaping both the state tax burden and federal taxation entirely.
Federal Tax-Free
Policy loans bypass federal income tax entirely. No 22-37% federal tax on your retirement income.
State Tax-Free
No Oregon state income tax on policy loans. Your retirement income stays tax-free at the state level.
Oregon Professionals We Typically Serve
Tech Executives
Intel, Nike, and Portland tech leadership
Nike and Apparel Executives
Athletic and outdoor industry leaders
Healthcare Professionals
OHSU and regional health system specialists
Outdoor Industry Leaders
Columbia, REI, and outdoor brand executives
Oregon Areas We Serve
Matt Nye's Recommendation
"Oregon is stunning—the coast, the mountains, Portland culture. But that 9.9% income tax is brutal. Combined with federal, you are looking at nearly half your 401(k) going to government."
"The no sales tax benefit disappears in retirement. You are not buying enough stuff to offset losing 47% of every retirement dollar."
"Section 7702 is how you stay in Oregon without the tax devastation. For tech executives, Nike leaders, and OHSU specialists, tax-free retirement income means you keep the Pacific Northwest lifestyle you have earned."
— Matt Nye, 20-Year Industry Veteran
Frequently Asked Questions
How does Section 7702 help Oregon residents?
Section 7702 allows you to access retirement funds completely tax-free—avoiding Oregon's crushing 9.9% rate plus federal taxes. This can mean nearly 50% more retirement income.
Oregon has no sales tax. Does that offset the income tax?
Not in retirement. No sales tax helps on purchases, but your 401(k) distributions still face the full 9.9% plus federal. Section 7702 eliminates both.
Many tech workers have stock options. How does this strategy fit?
Stock option exercises are taxed at ordinary income rates—up to 47% combined in Oregon. Section 7702 provides tax-free retirement income to balance your overall tax exposure.
People leave Oregon for taxes. Should I relocate?
Many do—but Section 7702 means you can stay. Tax-free retirement income makes Oregon affordable. Keep the mountains, the coast, and the culture you love.
Ready for Oregon Tax Freedom?
Discover how Section 7702 can eliminate both state and federal taxes on your retirement income. Schedule your free analysis today.
Schedule Your Oregon Tax Analysis →Free 30-minute consultation. No obligation. No sales pressure.