Oregon Paycheck Calculator & Income Tax Rates (2026)

Oregon applies 4 rates to taxable income — that is, income after the state standard deduction or exemption. Only the slice of income inside each band is taxed at that band's rate.

Oregon's effective state rate climbs with income as more of your salary lands in higher bands. The last column shows the state rate on your next dollar at each level.

Oregon's joint brackets widen the bands for couples, so the same household income is taxed more lightly. On $100,000 a joint return keeps $77,074 versus $70,932 for a single filer.

Oregon runs a four-bracket income tax—4.75%, 6.75%, 8.75% and 9.9%—and it bites earlier than almost any other state's: the 8.75% rate starts at a five-figure sliver of taxable income, so a median wage earner pays a marginal rate most states reserve for the affluent. The 9.9% bracket, added in 2009 with a threshold that has never been indexed, now reaches many two-earner households. Rates are unchanged for 2026. Oregon partly compensates with a subtraction for federal income tax paid, capped at roughly $8,000 and phased out at higher incomes, and with the kicker: whenever revenue beats the forecast by more than 2%, the surplus is refunded as a credit on the next return—a record 44.28% of 2022 tax liability came back in 2024, and a smaller kicker is credited on 2025 returns filed in 2026. With no sales tax, the income tax supplies most of Oregon's general fund, which makes the state's finances, and the kicker, unusually volatile.

Oregon's standard deduction is small—just under $3,000 single, double joint—and you may itemize for Oregon even if you took the federal standard deduction. On top come the federal tax subtraction capped near $8,000, a $250-per-person exemption credit that vanishes above $100,000 single and $200,000 joint, an earned income credit at 9% of the federal amount (12% with a child under three), and the Oregon Kids Credit of $1,000 per child under six for low-income families.

Portland layers on local income taxes. Metro's Supportive Housing Services tax takes 1% of taxable income above $125,000 single and $200,000 joint in the Metro district; Multnomah County's Preschool for All tax adds 1.5% above the same thresholds and 3% above $250,000 and $400,000. Both date to 2021 and reach nonresidents' in-district income. Statewide, employees pay a 0.1% transit tax, TriMet and Lane Transit payroll taxes hit employers and the self-employed, and Eugene withholds its own safety payroll tax.

Oregon has no state or local sales tax, and voters have rejected one nine times, most recently in 1993. Shoppers pay the sticker price on groceries, clothing, cars and restaurant meals alike. The exceptions are narrow and mostly invisible: a 1.5% state lodging tax plus local hotel taxes, a 0.5% vehicle privilege tax that dealers build into new-car prices, and excise taxes on gasoline, cigarettes, beer and marijuana. Washington residents cross the Columbia to shop in Oregon for exactly this reason.

Effective property tax rates average around 0.85% to 0.95% of market value, moderate by national standards and structurally capped: Measure 5 (1990) limits rates to $15 per $1,000 of real market value—$5 for schools, $10 for everything else—and Measure 50 (1997) holds assessed value growth to 3% a year, so long-owned Portland homes are taxed on values far below market. There is no general homestead exemption, but seniors and disabled homeowners can defer taxes through a state program, and veterans get a modest exemption.

Social Security and Railroad Retirement benefits are fully exempt. Almost nothing else is. Private pensions, 401(k) and IRA withdrawals and annuities are taxed at the regular rates, which puts a retiree's marginal rate at 8.75% almost immediately and 9.9% at higher incomes. Oregon PERS benefits are taxed, though the state pays a 9.89% benefit increase to compensate members with pre-1991 service. Federal and military pensions are exempt only for service before October 1, 1991, so most military retirees pay in full—one reason Oregon ranks among the least friendly states for them. A retirement income credit exists for taxpayers 62 and older, but its household income limit is so low that few qualify.

Oregon is hard on wage earners: a single filer at $60,000 pays close to 7% of income, with no sales-tax savings unless you spend heavily. Portland high earners face 9.9% plus 1% Metro and up to 3% Multnomah—near 13.9% at the margin, above California's 13.3%. Joint brackets are double; no marriage penalty. Retirees on Social Security alone owe nothing; those drawing pensions or IRAs pay as if working. Portland's self-employed also owe 2.6% city and 2% county business taxes on net profit. The classic winner lives in Vancouver, Washington, pays no income tax, and shops in Oregon.

The median household income in Oregon is $63,000, which is $47,845 a year ($3,987 a month) after all taxes. That is close to the national median. After adjusting for cost of living, the purchasing power of that take-home is equivalent to $43,496 in an average-cost area.

Oregon ranks #50 of 50 for raw take-home pay and #44 for cost-adjusted purchasing power at $100,000. The 6-place gap between the two reflects an above-average cost of living that erodes what the take-home actually buys. The best state (Alaska) leaves $79,125; the worst (Oregon) leaves $70,932. Oregon is $8,193 behind the leader.

City and Local Income Tax Calculators in Oregon

Oregon Tax Questions, Answered

Compare Oregon with Other West States

Specific Salaries in Oregon