Retire in Oregon: Cost, Taxes & FIRE Number for 2026
Retiring in Oregon costs about $65,000 a year on average, earning a C- retirement tax grade and a #41 healthcare ranking. Here's the full breakdown — cost, taxes, and how much you actually need saved.
What It Costs to Retire in Oregon
The average retiree in Oregon spends about $65,000 a year ($5,417/month), based on BLS spending data for households 65 and older, adjusted for Oregon's cost of living. That works out to a standard retirement number of $1,625,000 under the 4% rule, or $1.86M for early retirees using the more conservative 3.5% FIRE withdrawal rate.
How the numbers below are calculated:
Annual cost = BLS Consumer Expenditure Survey 2024 (65+ household spending) × Oregon's cost-of-living index (MERIC Q3 2025).
Standard Retirement Number = Annual Cost ÷ 0.04 (4% rule, ~30-year horizon)
FIRE Number = Annual Cost ÷ 0.035 (3.5% rule, 40–50+ year horizon for early retirees)
Oregon earns a C- retirement tax grade from Plootus Research and ranks #41 of 50 states for healthcare quality. Combined with an average annual salary of $69,180 for working residents (median $56,980), that gives a fuller picture of what building — and eventually spending down — a nest egg looks like here.
Oregon Retirement at a Glance
| Average annual retirement cost | $65,000/yr ($5,417/mo) |
| Standard Retirement Number (4% rule) | $1,625,000 |
| FIRE Number (3.5% SWR) | $1.86M |
| Retirement Tax Grade | C- |
| State Income Tax | 9.9% max |
| Social Security Tax | ✅ No tax |
| Healthcare Quality Rank | #41 of 50 |
| FIRE-Friendliness Rating | ★★☆☆☆ |
| Avg. Annual Salary (working residents) | $69,180 |
| Median Annual Salary (working residents) | $56,980 |
Sources: BLS CES 2024 (65+); MERIC Q3 2025; BLS OEWS May 2024; Plootus Research 2026.
Your Oregon-Adjusted Retirement Number
Pre-filled with Oregon's average retirement spending — adjust for your own situation.
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How Oregon Compares to Nearby States
| State | Annual Cost | Retirement Number | Tax Grade | HC Rank |
|---|---|---|---|---|
| Oregon | $65,000 | $1,625,000 | C- | #41 |
| Alaska | $64,000 | $1,600,000 | A | #35 |
| Washington | $67,000 | $1,675,000 | B- | #14 |
| California | $92,000 | $2,300,000 | F | #8 |
How Oregon Treats Retirees on Taxes and Healthcare
Oregon carries a C- retirement tax grade from Plootus Research — a middling state on retirement tax-friendliness, worth weighing against its other advantages.
State Income Tax
Oregon's state income tax tops out at 9.9% — among the higher rates nationally. Check current brackets and any retirement-income deductions before you file.
Social Security Tax
Oregon does not tax Social Security benefits, one of the factors behind its C- tax grade. Confirm current rules with a tax professional as exemptions can vary.
Oregon ranks #41 nationally for healthcare quality — one of the lower-ranked states, so it's worth researching specific providers and hospital systems in your target city before committing.
Frequently Asked Questions: Retiring in Oregon
Oregon earns a C- retirement tax grade and ranks #41 of 50 for healthcare quality. Average annual retirement spending runs about $65,000, requiring roughly $1,625,000 in savings under the standard 4% withdrawal rule. Whether it's a good fit depends on your priorities — Oregon's state income tax is 9.9% max, and it does not tax Social Security.
Oregon does not tax Social Security benefits, one of the factors behind its C- tax grade. Confirm current thresholds and exemptions with a tax professional, since rules change year to year.
Using the standard 4% rule, retiring in Oregon on its average annual cost of $65,000 requires approximately $1,625,000 in savings. That figure excludes Social Security, which most retirees layer on top to reduce the amount they need from their own portfolio.
At a 3.5% safe withdrawal rate — the more conservative rate recommended for early retirees facing a 40–50+ year horizon — Oregon's FIRE number is approximately $1.86M, based on its $65,000/year average cost. Early retirees should also budget separately for healthcare before Medicare eligibility at 65.
Sources
- Bureau of Labor Statistics, Consumer Expenditure Survey 2024 (65+ age group)
- Missouri Economic Research and Information Center (MERIC), Cost of Living Index Q3 2025
- Bureau of Labor Statistics, Occupational Employment and Wage Statistics (OEWS) May 2024
- Kiplinger, Retirement Taxes 2026; WalletHub Best States to Retire 2026
- Plootus Research 2026 (tax grades, healthcare rank, FIRE ratings)
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