Oregon Retirement Guide

If you have been looking for the best places to retire in Oregon here is the information you need. Choose Oregon retirement communities that are popular with active adults 55 and over, such as Bandon, Bend, or Hood River. This page will acquaint you with some basic facts about climate, best retirement communities, and tax climate. Updated August 2024.

Overall
Oregon has become a top state for retirement communities by virtue of its natural beauty, dynamic people and geography. Oregon offers better value for your retirement dollar than California – although real estate prices are climbing. Recreational activities are exceptional in this state with a Pacific Ocean coastline, the Willamette Valley, exciting rivers like the Columbia, along with great mountains like the Cascade Mountain Range and Mt. Hood. Oregon’s growing population was over 4.2 million in 2023, with 19.6% of the population age 65 or over (that is slightly higher than the U.S. 65+ figure).

                                                                                                                    Pix: Coast at Bandon, Oregon

Climate
The Oregon climate is characterized as Marine West Coast. Its climate is relatively mild and a great place for gardening – almost anything will grow here. Moist air from the Pacific controls the climate. Year round temperatures are in a fairly narrow band. There is a lot of precipitation along the coasts, particularly in winter. The northern part of Oregon has rain forests while the middle and eastern part of the state can be dry.

Cost of Living and Housing Prices
In 2018-2022 the Oregon median household income was $76,632, slightly higher than the U.S. figure. Statewide median home prices increased dramatically up until 2022 – the figure was $503,000 in 2024 – $140,000 higher than the national median. Cost of living is high – it was ranked 43th lowest in the nation according to MERIC in 2024. Median sales price of homes in the Portland/Vancouver region were $608,500 in the 4th quarter of 2024, substantially higher than the U.S. median of $422,000 (Source: NAR).  In Eugene/Springfield the median selling price was $469,000.

Tax Burden:   At 10.8%, Oregon’s local and state tax burden was ranked #31 of all the states in 2022.

Marginal Income Tax Rates. The lowest tax rate is 4.75%, but it goes up quickly from there. The Oregon top marginal income tax rate is 9.9%, which kicks in at incomes of $250,000 (couples). This is one of the highest rates of any state.

Retirement Income Exemptions. Federal and military pensions are generally exempt from state income tax.

Social security exemption. Social security is exempt.

Sales Tax: There is no state sales tax in Oregon.

Property Taxes: In 2023 Oregon ranked 24th for property taxes as a percentage of property value.

Homestead Exemption.  Oregon has an excellent program that limits the assessed value of your home from increasing more than 3% a year, unless you make improvements to it. See OR Property Taxes.

Estate and/or Inheritance Taxes. Oregon has an estate tax on estates over $1 million.

Link to the Oregon Department of Revenue.

Certified Retirement Communities
Oregon does not have a certified retirement community program.

Best Retirement Communities
Oregon has a lot to offer active adults looking for retirement communities. Some of the best retirement communities are the college town of Eugene, the windsurfing mecca of Hood River, the perennial best rated retirement community of Bend, or the golfing paradise of Bandon etc. You will also get inside retirement information on living in bustling city of Portland, the interesting capital of the state, Salem, or nearby communities in Washington state.

See our Oregon Directory of Towns and Active Adult Communities

Click on the Oregon retirement towns on the right. Or to find information about what the best states to retire in.