Oregon Department of Revenue : Personal Income Tax : Individuals : State of Oregon

Taxpayers in Multnomah County, which is home to Portland, also pay the balance sheet Preschool For All Personal Income Tax. For single filers, this is a 1.5% tax on income above $125,000 and 3% on income above $250,000. Married couples filing jointly pay 1.5% on income above $200,000 and 3% on income above $400,000.

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The calculator will automatically estimate your take-home pay after federal taxes, Oregon state taxes, Social Security, and Medicare deductions. A drop box at DOR’s Gresham office is available during business hours. New this year, taxpayers can file their federal return directly with the IRS using IRS Direct File and their Oregon return directly with the state through Direct File Oregon for free. Videos are available to show how to use IRS Direct File and Direct File Oregon. A financial advisor can help you handle all your tax queries and ensure you’re not paying more tax than needed. Similar to other states, Oregon property taxes are assessed, calculated, and collected on a county level.

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• That means capital gains can be taxed at a rate as high as 9.9%, depending on your total income.
• The county assessor verifies the tax rates and levies submitted by each local taxing district on an annual basis.
• In 2025, the Oregon state income tax rates range from 4.75% to 9.90%.
• Pre-tax deductions, such as retirement fund contributions, can also impact your paycheck.
• Additionally, Social Security income is not subject to taxation in the state.

When it comes to tax credits, Oregon offers a range of options to help lower your tax liability. One example is the Oregon Earned Income Tax Credit (EITC), which is a refundable credit for low-income individuals and families. The EITC is based on your federal EITC and can be a significant benefit, especially for those with lower incomes. Federal and state income taxes can significantly reduce the wealth your family keeps every year. Fortunately, there are several strategies available to minimize these taxes.

Oregon Income Tax Returns

A financial advisor can help you understand how taxes fit into your overall financial goals. If you’re ready to find an advisor who can help you achieve your financial goals, get started now. The Personal Exemption, which is supported by the Oregon income tax, is an additional deduction you can take if you (and not someone else) are primarily responsible for your own living expenses. Likewise, you can take an additional dependent exemption for each qualifying dependent (like a child or family member), who you financially support.

• If you pay for any benefits from your employer, such as health or life insurance, any premiums you pay will come out of your paycheck.
• Residents of Portland should also factor in the city’s $35 arts tax, which applies to many adult residents.
• Just like a married couple, domestic partners may file jointly or separately.
• Estimated tax payments may be required quarterly if an individual expects to owe $1,000 or more in tax after withholding and credits.
• And if you want professional tax help, simply connect with a TurboTax expert for personalized advice, or let us handle filing for you.
• ​File electronically using Revenue Online​ and read about Petroleum Load Fee filing requirements​​​.
• Note that these are marginal rates, so they only apply to the portion of the estate falling within that bracket.

If I sell my home in another state after moving to Oregon, am I subject to Oregon income tax on the sale?

Tax collections are managed primarily by the 36 counties in Oregon, which assess property and calculate taxes owed. Revenue from the property tax typically goes to support local services such as schools and law enforcement. If you find the Oregon state income tax system too complex or have a complicated tax situation, it may be beneficial to hire a tax professional.

Part-year resident or nonresident

That income threshold is doubled for married people filing together and heads of household. Oregon has a graduated state individual income tax, with rates ranging from 4.75 percent to 9.9 percent. There are also jurisdictions that collect local income taxes, with high taxes in the Portland Metro area. Oregon has a graduated corporate income tax, with rates ranging from 6.6 percent to 7.6 percent. The state levies a gross receipts tax in addition to the corporate income tax.

Once your transaction is processed, you’ll receive a confirmation number. When paying estimated tax or extension payment, you aren’t required to file a couple or the Oregon-only extension form. Tax exclusions are an amount of money or income that is not subject to taxation. This means that taxpayers do not have to pay taxes on this income. For small businesses, managing taxes, accounting and everything legal is just a pain. Instead of working with CPAs, attorneys and others separately, Start brings all of them under a single subscription.

• When you prepare and eFile your Tax Return the eFile Tax App will apply the correct standard deductions for you or you can apply the itemized deduction method.
• Oregon has a graduated state individual income tax ranging from 4.75% to 9.9%, according to the Tax Foundation.
• To file a tax return in Oregon, taxpayers must complete and submit a tax return form.
• Benefits of e-Filing your Oregon tax return include instant submission, error checking, and faster refund response times.
• But dollars below that amount will be taxed at the rate corresponding to the brackets they fall into.

When you prepare and eFile your Tax Return the eFile Tax App will apply the correct standard deductions for you or you can apply the itemized deduction method. Prepare and e-File your Oregon Income Taxes here on eFile.com together with your Federal Income Tax Return. Per IRS/State regulation – not eFile.com – an Oregon state tax return oregon income tax can only be e-Filed together with an IRS tax return.

Oregon Estate Tax Rates

Estate tax is imposed when assets are transferred from an estate to heirs and beneficiaries. Oregon is an interesting tax when it comes to your tax liability. File electronically using Revenue Online and read about filing options​. File electronically, view a list of approved vendors or file electronically using Revenue Online. In addition,we provide special supportfor non-profit, educational, and government users. Through socialentre­pre­neurship, we’re Bookkeeping for Startups lowering the cost of legal services andincreasing citizen access.