The State Tax Competitiveness Index enables policymakers, taxpayers, and business leaders to gauge how their states’ tax systems compare. While there are many ways to show how much state governments collect in taxes, the Index evaluates how well states structure their tax systems and provides a road map for improvement. TurboTax makes it simple to maximize your refund and keep more of what you’ve earned. Oregon has a graduated-rate income tax, ranging from 4.75 to 9.9 percent across four income brackets.

• Like the federal income tax, the Oregon income tax is progressive, meaning the rate of taxation increases as taxable income increases.
• Tax burdens rose across the country as pandemic-era economic changes caused taxable income, activities, and property values to rise faster than net national product.
• The Tax tables below include the tax rates, thresholds and allowances included in the Oregon Tax Calculator 2024.
• Retail sales taxes are an essential part of most states’ revenue toolkits, responsible for 24 percent of combined state and local tax collections.
• For all of the tax forms we provide, visit our Oregon tax forms library or the ‘s tax forms page.
• The tax burden accounts for more of the final price of beer than labor and materials combined—the many different layers of applicable taxes combining to total as much as 40.8 percent of the retail price.

Oregon State Income Tax

You are considered an Oregon resident if you lived in Oregon for most of the last tax year, specifically 200 days or more. We’ve built a platform to give everyone access to the tax and wealth-building tools typically reserved for wealthy individuals with a team of accountants and lawyers. We make it simple and seamless for our customers to take advantage of these hard-to-access tax-advantaged structures. With Valur, you can build your wealth more efficiently at less than half the cost of competitors.

Oregon retirement taxes

As such, FICA represents a critical element of the United States’ approach to social welfare, providing foundational financial security and healthcare benefits that many oregon income tax rate Americans rely on. The Earned Income Tax Credit (EITC) is a significant tax credit in the United States, designed primarily to benefit working individuals and families with low to moderate income. As a refundable credit, the EITC not only reduces the amount of tax owed but can also result in a refund if the credit exceeds the taxpayer’s total tax liability.

How much time do I have to file an amended return?

Choose any state from the list above for detailed state income tax information including 2025 income tax tables, state tax deductions, and state-specific income tax calculators. Many state pages also provide direct links to selected income tax return forms and other resources. Let’s consider an individual who has a taxable income of $350,000 in Oregon. The individual qualifies for the $2,800 standard deduction, reducing their taxable income to $347,255, putting them in the 9.90% tax bracket.

• Oregon may not be considered one of the most tax-friendly states due to its progressive income tax system.
• Download Publication OR-ESTIMATE​​, for more information about estimated personal income tax payments.
• The tax return form requires taxpayers to report their taxable income and any credits or deductions they are eligible to claim.
• This tool is freely available and is designed to help you accurately estimate your 2024 tax return.
• While we strive to provide a wide range of offers, Bankrate does not include information about every financial or credit product or service.

Oregon‘s tax system ranks 30th overall on the 2025 State Tax Competitiveness Index. Oregon forgoes a sales tax, but doubles down on other forms of taxation. The state has a complex and progressive individual income tax system with four tax brackets, a top marginal rate of 9.9 percent, and a personal exemption structured as a tax credit. Portland has the highest combined local income tax rate in the nation (4 percent), adding an extra layer of tax burden for residents of the state’s largest Budgeting for Nonprofits city.

3 – Oregon Dependent Deduction

The Tax tables below include the tax rates, thresholds and allowances included in the Oregon Tax Calculator 2023. As a result of the COVID-19 crisis, the Department of Revenue has postponed the deadline for filing individual tax returns and paying first-quarter estimated taxes. However, the agency has not postponed the due date for submitting an appeal or waiver request of state income tax penalty and interest charges. The Tax tables below include the tax rates, thresholds and allowances included in the Oregon Tax Calculator 2025. The Oregon income tax is a state-level tax imposed on the income of individuals, businesses, or other legal entities. Like the federal income tax, the Oregon income tax is progressive, meaning the rate of taxation increases as taxable income increases.

You can use tax calculators or consult a tax professional to get a clearer estimate. It is generally seen as a good place for retirees due to the lack of Social Security taxation. There are a few ways to pay Oregon state income tax, including online. You can also make a payment before filing or during an extension. You can use the same payment options for both federal and state taxes. Federal and state income taxes can significantly reduce the wealth your family keeps every year.

• We are compensated in exchange for placement of sponsored products and services, or by you clicking on certain links posted on our site.
• Oregon’s property tax system is moderately competitive, though the property tax burden relative to personal income is higher than in California and Washington.
• Whether you’re a resident, business owner, or property holder, understanding these requirements is essential to avoid penalties and take advantage of potential savings.
• Oregon has $10,214 in state and local debt per capita and has an 88 percent funded ratio of public pension plans.

How to Calculate Oregon State Income Tax?

Think of ordinary income as the money you earn day in and day out. According to the latest economic data from the US Census Bureau, the average per capita state and local tax burden is $7,109. Oregon allows a standard deduction—$2,605 for single filers and $5,210 for joint filers in 2024—but does not permit the federal deduction for state and local taxes (SALT). Certain subtractions, such as the federal pension subtraction, allow retirees to exclude a portion of their federal pension from state taxation. Download Publication OR-ESTIMATE​​, for more information about estimated personal income tax payments.

Federal Married (separate) Filer Tax Tables

Understand Oregon’s tax code with key rules, requirements, and compliance insights for individuals, businesses, and property owners. In a graduated, or progressive, tax system like Oregon’s, the effective, or actual, tax rate you pay is a blend of tax rates. If your state tax witholdings are greater then the amount of income tax you owe the state of Oregon, you will receive an income tax refund check from the government to make up the difference. The two most popular tax software packages are H&R Block At Home, sold by the H&R Block tax preparation company, and TurboTax Federal & State, sold by the Intuit software company. Both companies produce multiple editions for simple to very complex tax returns, so be sure to carefully compare the features offered by contra asset account each package.