I cashed out my 401k last year early when I chaned jobs to pay some bills. I work in OR state they have income tax. I live in WA state with no income tax. Will I have to pay State tax on this?

Depends on the state tax laws in Oregon.

If Oregon considers the distribution to be part of the compensation from the employer, then it is taxable.

However, I suspect that the 401K custodian will NOT provide a copy of the Form 1099-R to Oregon if they know you live in Washington.