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

Marginal tax rates start at 4.75 percent and, as a taxpayer’s income goes up, rates quickly rise to 6.75 percent and 8.75 percent, topping out at 9.9 percent. The thing to note is that it doesn’t take much income to get to the next-to-highest tax bracket of 8.75 percent. For couples filing taxes together, the 8.75 percent tax rate kicks in at $18,400 of taxable income (what you’re left with after all tax subtractions and deductions, but before tax credits). That rate stays in place until a couple reaches $250,000 of taxable income. This means a lower-income family with just $20,000 of taxable income pays the same tax rate on its last dollar of income as a family making a quarter-million dollars. The federal income tax is a tax that the United States government levies on the annual earnings of individuals, corporations, trusts, and other legal entities.

For previous years’ tax rates, refer to the tax charts on the last page of Publication OR-17. Oregon does not collect sales taxes of any kind, at the state or local level. Register for a NerdWallet account to gain access https://www.bookstime.com/ to a tax product powered by Column Tax for a flat rate of $50 in 2024, credit score tracking, personalized recommendations, timely alerts, and more. Some states have a progressive tax, while others have a flat tax.

After you file

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. While taxes are a part of life, you can play a role in how much comes out of your paycheck.

The rate depends on the tax rate approved by local voters and the limits established by the Oregon Constitution. Most properties are taxed by a number of districts, such as a city, county, school district, community college, oregon income tax fire district or port. The total tax rate on any particular property is calculated by adding all the local taxing district rates in the area. The total tax rate is then multiplied by the assessed value of the property.

Tax Year 2022

Oregon has a 6.60 percent to 7.60 percent corporate income tax rate and levies a gross receipts tax. Oregon does not have a state sales tax and does not levy local sales taxes. Oregon’s tax system ranks 24th overall on our 2023 State Business Tax Climate Index.

While the personal income tax is based on a taxpayer’s ability to pay, Oregonians pay other taxes not connected to how much someone can afford to pay. They include property taxes and excise taxes on things like gasoline, alcohol, and tobacco. When you add up all state and local taxes, Oregon’s tax structure is actually regressive – meaning low-income Oregonians pay a higher share of their income in taxes than the richest Oregonians. While the state income taxes deal a heavy hit to some earners’ paychecks, Oregon’s tax system isn’t all bad news for your wallet.

The tax system pays for the things that matter to Oregonians

This is because the Oregon state standard deduction is going to make the taxable income $0 or less, therefore, there is no need for the taxpayer to file a tax return. Beyond federal income taxes, your employer will also withhold Social Security and Medicare taxes from each of your paychecks. Social Security tax is withheld at 6.2% and Medicare tax at 1.45% of your wages. Your employer then matches those amounts, so the total contribution is double what you paid. If you earn wages in excess of $200,000, they are subject to a 0.9% Medicare surtax (though employers do not match this surtax).