Employee Cost: Oregon vs Washington (2026)

Side-by-side comparison of employer costs, payroll taxes, SUTA rates, and workers' comp.

At a $60,000 salary

Oregon saves $176/employee/year

$66,682 in Oregon vs $66,858 in Washington

Oregon

$66,682

1.11x salary

Washington

$66,858

1.11x salary

Cost Breakdown Comparison

Based on $60,000 annual salary

Cost Component OR WA Diff
Base Salary $60,000 $60,000
Social Security (6.2%) $3,720 $3,720
Medicare (1.45%) $870 $870
FUTA (0.6%) $42 $42
SUTA (State Unemployment) $1,162 $1,050 +$112
Workers' Compensation $648 $888 -$240
State-Mandated Insurance $240 $288 -$48
Total Employer Cost $66,682 $66,858 -$176

Tax Rate Comparison

Rate Oregon Washington
SUTA Rate Range 0.7% – 5.4% 0.2% – 5.8%
SUTA Typical Rate 2.2% 1.75%
SUTA Wage Base $52,800 $67,600
Workers' Comp Rate 1.08% 1.48%
State Income Tax Yes No
Paid Family Leave 0.4% 0.48%

What This Means for Employers

For a business hiring at a $60,000 salary, choosing Oregon over Washington saves $176 per employee per year in employer-side payroll costs alone. For a team of 10, that's $1,764 annually.

The biggest difference comes from workers' compensation rates — Oregon charges 1.08% vs Washington's 1.48%. Note that federal taxes (Social Security, Medicare, FUTA) are identical in both states.

These numbers reflect employer-side costs only and don't include benefits, overhead, or the employee's own tax burden. Use the interactive Employee Cost Calculator to model different salary levels and benefits packages.

Cost Comparison at Different Salary Levels

How the gap changes from $30K to $150K

Salary OR Total WA Total Difference
$30,000 $33,441 $33,450 -$9
$40,000 $44,574 $44,586 -$12
$50,000 $55,707 $55,722 -$15
$60,000 $66,682 $66,858 -$176
$75,000 $83,051 $83,433 -$381
$100,000 $110,334 $110,835 -$501
$125,000 $137,616 $138,238 -$621
$150,000 $164,899 $165,640 -$741

Click any amount to see the full cost breakdown for that salary and state. Amounts shown from the perspective of OR.

Get Free Business Tips

Join small business owners getting weekly financial tips and calculator updates. No spam, unsubscribe anytime.

We respect your privacy. Unsubscribe with one click.