I live in Washington state but work in Oregon, why do i owe Oregon income tax still?

[SteamTrain]

Because you work in OR...you do have to file and pay OR income taxes on those wages  (non-resident tax return).

....it's the same thing TX residents have to do if they work in OK, or Arkansas....if you physically work in a state with income taxes, you have to pay income taxes to that state first..and then your home sate.

OR residents also have to pay income taxes to OR if they work in WA.

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Exceptions are a few states that have "reciprocal" tax agreements with a neighboring state, where both states agree to not tax the wages of cross-border workeres......but since WA doesn't have an income tax...they have no "reciprocal" tax agreements

[coty-nd]

@SteamTrain
but would i get a percentage of my income tax withheld throughout the year back becuase i do live in another state?

[SteamTrain]

no way to know..because you can have state taxes under-withheld...or over withheld depending on how the W-4 withholding form is filled out at your employer.  ( Some states have their own, but OR just uses whatever you claimed on the Federal W-4)
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Some WA  people have OR withholding and still have to pay more taxes to OR because of the way they set themselves up at their employer with their Federal W-4 form....and how many "allowances" they claimed
........fewer allowances on your W-4, and the employer withholds more, then you are more likely to have a refund.....bump up your allowances to a higher number and the employer withholds less, BUT you might end up owing an unpleasantly high tax bill when you file at tax time.