#5 Oregon

The state income tax ranges from 4.75% to 9.9%. The 4.75% applies to married couples that are filing jointly and have a taxable income of a maximum of $7,300 or to married individuals that are filing separately and individual filers that have a taxable income of a maximum of $3,650.

The 9.9% applies to married couples that are filing jointly or to the surviving spouses that have a taxable income of a maximum of $250,000 or to married individuals that are filing separately and individual filers that have a taxable income of a maximum of $125,000. 

Social Security benefits are not taxed in Oregon, which certainly helps retirees pay less income tax. Other retirement income, however, is typically taxed, and Oregon’s rates of income tax can reach as high as 9.9%. There’s a retirement-income credit available to seniors, but it has some income requirements.

Oregon’s lack of a sales tax is one positive aspect of its tax situation. In the state, there are no sales taxes to be paid on whatever you purchase.