Metrofactual

Next time you’re grumpy about your company’s taxes, take heart: The corporate tax climate here really isn’t so bad.

Tax burden for companies in Oregon and Washington, each of which has a piece of greater Portland, is lower than in most other states, according to the Tax Foundation. Ranking states for “best business tax climate,” the Foundation places Oregon 9th and Washington 12th.

Similarly, accounting experts at Ernst & Young, who calculate “total effective tax rate” by taking into account property, receipt and sales and income taxes, cite Oregon’s as second-lowest in the U.S., at 3.8%; Washington’s is 5.8%. Delaware’s total effective tax rate is the nation’s lowest, at 3.5%, and Alaska’s the highest, at 11.6%.

Greater Portland companies have another tax advantage on either side of the Columbia. Oregon has no sales tax, which can be a boon for companies making big equipment purchases. And Washington has no state income tax, a selling point for prospective employees.

More tax facts:

Oregon’s corporate income tax rate of 6.6% is 16th-lowest in the nation. California’s rate of 8.8% ranks it seventh-highest.
Oregon collects $120 per capita in corporate taxes, while California hauls in $286.