By: Dr. Tamara Patzer

October 12, 2026

In Brief: A 2026 estimate puts the income needed for the top 1% of Oregon filers at $650,746, far below Washington at $903,303 and California at $987,325. This feature uses those gaps to explain what changes, and what does not, for owners with property, customers or family across state lines.

Portland sits a short drive from Washington, and the gap in the numbers is larger than the distance. A 2026 estimate from SmartAsset puts the adjusted gross income needed to reach the top 1% of Oregon filers at $650,746¹. The same estimate puts Washington at $903,303 and California at $987,325¹. For owners with customers, property or family in more than one state, the differences are a good reason to look at the plan again. Todd M. Villarrubia, the New Orleans tax and estate attorney who wrote Entrepreneurial B.E.A.S.T. Mode™, makes the case from the federal side.

What Does It Take to Reach the Top 1% in Oregon?

Roughly $650,746 in adjusted gross income, in SmartAsset’s 2026 projection¹. The estimate is built from 2022 IRS filings, adjusted to 2026 with Bureau of Economic Analysis income growth, and it describes filers rather than households or individuals¹.

For scale, the highest state estimate is Connecticut at $1,147,898 and the lowest is West Virginia at $445,892¹.

How Far Apart Are Oregon and Its Neighbors?

The distance is larger than most owners expect. Washington’s estimate is $252,557 higher than Oregon’s, and California’s is $336,579 higher¹. A filer who would sit comfortably in the top 1% in Oregon could be below the line one state to the north¹.

The reason is not mysterious. Incomes differ, and each state’s line reflects its own return data. The practical lesson is that a rank in one state does not travel. An owner who moves, or who earns income in two states, cannot read a single headline number and know where they stand.

Does the Federal Picture Change With the Border?

No, and that is the point worth keeping in mind. The federal rules follow the owner wherever they live. The Net Investment Income Tax of 3.8 percent applies to net investment income once modified adjusted gross income passes $200,000 for single filers or $250,000 for joint filers, whatever the state². For people who die in 2026, the federal basic exclusion amount is $15,000,000 per person³.

The national top 1% line, by comparison, was about $676,000 of adjusted gross income for tax year 2023, according to the Tax Foundation’s analysis of IRS data⁴. Oregon’s estimate falls close to that national number. Washington and California sit well above it.

State income tax and state estate rules differ, and this article does not cover them. An owner with a connection to more than one state needs a lawyer who can see all of it at once.

Why Does a Multi-State Owner Face More Exposure?

Because every state where an owner holds property or does business is another place a claim can start. Villarrubia puts the arithmetic simply: “Each property you own increases not only your cash flow but also your overall exposure to potential legal liabilities.”

He is equally blunt about what happens when everything sits together: “Concentration without protection is not strength; it’s exposure.” In the book, the answer is to separate assets by risk, keep the separation real and pay attention to which state’s rules govern each entity. Those rules differ, and courts can look past separate entities when owners mix money or ignore formalities.

None of this is a recommendation for any particular owner. It is a description of the questions the book asks.

What Should a Multi-State Owner Check First?

Start with a one-page map. It does not need to be elaborate:

• A list of every state where the owner holds property, has employees or files a return.

• The entity that owns each asset, with its state of formation.

• The advisers who cover each state, and whether they talk to one another.

• Where the owner and the family expect to live in five years.

That last question matters more than it looks. A family that plans to move, or whose children live elsewhere, is dealing with a different legal picture from one that stays put. Villarrubia warns that wrong or missing structure can be costly: “The wrong structure or a missed exemption can turn a lifetime of compounding into a government windfall instead of a family legacy.”

Does the Income Spike Matter More Than the Average?

Often it does. A year with a sale, a large bonus or a payout can lift income far above a normal year, and a filer can cross a line once and fall back the next year. The book describes the difference between income and wealth in a short phrase: “Income is a flow; net worth is a stock.” The flow can spike, while the stock is what the family lives on.

What Would an Income Spike Look Like Across the Border?

Consider a hypothetical Portland owner who normally reports $400,000 and sells a minority stake in a company in a single year, bringing the year’s income to $1.1 million. That owner clears Oregon’s estimated line, Washington’s and California’s for that year. A second owner reporting $700,000 in a normal year is above Oregon’s line every year and below the others. Neither owner has changed how wealthy they are. The number of lines they cross has changed.

The example is invented to show the point, and it is not a tax calculation. The practical takeaway is that a one-year spike should be planned for before the year, not read about after it.

What Is the Simplest Way to Start?

Draw a line down a page. On one side, list what you own and where it is. On the other, list who helps you manage it and where they work. Look for items that sit on the wrong side of a border. Then take the page to your attorney and ask which items need attention first.

Common Questions

Is Oregon’s Line Lower Because Oregon Is Poorer?

Not necessarily. The line reflects the spread of incomes in the filing data, not a judgment about the state.

Do These Estimates Change?

Yes. They are projections, and newer IRS data will replace them.

Should an Oregon Owner Worry About Washington’s Number?

Only if they earn or hold assets there. For most owners, the federal figures and their own state’s rules matter more.

Sources

1. SmartAsset, How Much Do You Need to Earn to Be in the Top 1% in Your State in 2026?

2. Internal Revenue Service, Topic no. 559, Net Investment Income Tax

3. Internal Revenue Service, What’s New: Estate and Gift Tax

4. Tax Foundation, Who Pays Federal Income Taxes? Tax Year 2023

About the Author. Dr. Tamara Patzer is a publisher and former newspaper editor. She was on the staff of The Charlotte Sun when it was named a 2005 Pulitzer Prize finalist for its Hurricane Charley coverage.

About the Source. Todd M. Villarrubia is an attorney with an LL.M. in Taxation and a Juris Doctorate. He is an Accredited Estate Planner, a Board Certified Expert in Estate Planning and Administration, and a Fiduciary Investment Advisor Representative. He is the author of Entrepreneurial B.E.A.S.T. Mode™. Wealth Planning Law Group, 101 W. Robert E. Lee Blvd., Ste 404, New Orleans, LA 70124. Phone: 504-982-8207; email: todd@lawealthplan.com; website: Wealth Planning Law Group.

Disclaimer: Attorney advertising. Sponsored feature written on behalf of Todd M. Villarrubia. This article is general information, not legal or tax advice, and reading it does not create an attorney-client relationship. Results vary.