Flash Fact: Breathing your last in Oregon can be costly

Oregon Transformation

The federal death tax rate in this country is currently 35%.  There are 22 states that impose an additional tax on top of the federal rate with a state death tax, including Oregon.

So, for the folks who qualify for this death tax, what is the tax penalty for dying in the state of Oregon?  Nearly half of a lifetime’s savings.

This table shows combined federal and state death tax rates, according to the Wall Street Journal, for all 22 states:

State (w/rank) Rate % State (w/rank) Rate %
1 New Jersey 54.1 6 Kentucky 45.4
2 Maryland 50.9 6 Illinois 45.4
3 Indiana 48 6 Hawaii 45.4
4 Washington 47.4 6 Minnesota 45.4
5 Nebraska 46.7 6 Massachusetts 45.4
6 Delaware 45.4 6 Maine 45.4
6 Oregon 45.4 7 Iowa 44.8
6 North Carolina 45.4 7 Pennsylvania 44.8
6 New York 45.4 8 Connecticut 42.8
6 Rhode Island 45.4 9 Tennessee 41.2
6 Vermont 45.4 10 Ohio 39.6


Oregon has the sixth highest combined death tax rate in the country.

Why is this significant?  A 2008 study by the Connecticut Department of Revenue Services found that:
“… the states without an estate [death] tax produced twice as many jobs from 2004-07 and had a growth rate 50% faster than those with estate taxes.”

The “folks” that qualify for the death tax penalty in Oregon are mostly family business owners, ranchers, farmers and retirees.

It’s nearly impossible for a family business, family farm or ranch to survive for the next generation when the tax collector takes a 45% cut.

The logical decision would be to move to a state that doesn’t have a death tax.  Those states are welcoming the businesses, the jobs, and the competitive advantage.

Sources: http://online.wsj.com/article/SB10001424052748703960804576120050963075390.html

Learn more by visiting the Oregon Transformation website