Retiring to Bend & Redmond — The Honest Review

What You'd Actually Own Here

• Deschutes County property taxes are genuinely low — approximately 0.62% effective in Bend and 0.72% in Redmond, well below the national median of 1.02%.
• Oregon has zero sales tax, which meaningfully offsets its income tax for retirees who spend on goods and services — roughly $1,950–$2,200/year saved versus an equivalent Washington State budget.
• Social Security is fully exempt from Oregon income tax at all income levels, and federal pension income receives a partial exemption up to $6,250/person.
• Dry Canyon Village in Redmond is the market's real fee-simple alternative — a new, gated, single-level community with an indoor saline lap pool and Cascade views, where buyers do own the land.
• The outdoor recreation case is genuine and specific: Smith Rock State Park, the Deschutes River, Mount Bachelor skiing, and 30+ golf courses, at 3,600 feet elevation with 300+ days of sunshine a year.

What the Lot Rent Doesn't Cover

• The land-lease structure at Cascade Village and The Four Seasons in Bend means buyers own the home but not the ground it sits on — lot rent is a permanent monthly obligation that can increase over time, with no equity building in the lot itself.
• Oregon's income tax is real and can be high: 8.75% on income between $125,000–$250,000 (single), rising to 9.9% above that for high earners — a genuine cost for retirees with substantial pension, private annuity, or investment income not covered by the Social Security exemption.
• Oregon Public Employees Retirement System (PERS) pensions are fully taxable, as are private pensions and IRA/401(k) withdrawals — only the federal pension exemption and Social Security exemption provide relief.
• This is a small market with a limited number of dedicated communities, and Redmond's airport (RDM), while convenient, is small — buyers used to major-hub connectivity should expect fewer direct flight options than a market near a large airport.

Does the Land-Lease Trade Work for You?