Oregon State Income Tax Key Information and Rates

The current standard deduction is $4,840 on joint returns, $2,420 on single and married filing separate returns, and $3,895 for a head of household return. Blind or elderly taxpayers and persons over the age of 65, will receive an additional $1,200 standard deduction on a single return and an additional $1,000 per eligible person on a joint return. These guides also include important tax filing deadlines and links to tax resources. Oregon has a graduated state individual income tax, with rates ranging from 4.75 percent to 9.9 percent. Oregon has a graduated corporate income tax, with rates ranging from 6.6 percent to 7.6 percent. Oregon has a 0.77 percent effective property tax rate on owner-occupied housing value.

The tax system can be a powerful tool to advance economic and racial justice

Oregon state tax can’t get any better when it comes to purchasing goods and services. That’s because Oregon is one of the five states with no sales tax. However, income tax rates are higher in the Beaver State than in many other parts of the U.S. Oregon requires estimated tax payments if a taxpayer expects to owe at least $1,000 after subtracting withholding and refundable credits. This applies to both individuals and businesses, ensuring tax liabilities are paid incrementally rather than in a lump sum. The state follows a “pay-as-you-go” system, meaning payments must be made throughout the year.

Oregon Personal Income Tax Statistics

• These guides can help you determine your tax bracket, what you’ll pay in taxes and what tax breaks are available to you.
• Revenue from the property tax typically goes to support local services such as schools and law enforcement.
• Oregon’s tax system ranks 30th overall on the 2025 State Tax Competitiveness Index.
• Facts & Figures serves as a one-stop state tax data resource that compares all 50 states on over 40 measures of tax rates, collections, burdens, and more.
• It also means estates valued at $1 million or below will not pay taxes.
• The state of Oregon allows taxpayers to deduct charitable contributions made to qualifying organizations from their state taxable income.
• One exception to this is for new vehicles purchased outside the state.

If you want to cut taxes in Oregon, a simple majority of the Oregon legislature suffices. If you want to create a new tax giveaway for the well-off or a new tax subsidy for corporations, again, a simple majority is enough. From Jesus to Adam Smith, there is wide agreement that a fair tax system is one based on the ability to pay — one that asks proportionately more of a rich person than of a poor person. Tax Day will arrive a month later than usual this year, another consequence of the COVID-19 pandemic. With additional time to file your return, you may want to spend a few minutes reflecting on the tax system. You may file either of the taxpayer authorization forms through Revenue Online or submit a paper form.

Lawmakers consider tax hikes, fees to fund roads and bridges in Oregon budget talks

• Taxable property includes real property, mobile homes and some tangible personal property used by business.
• 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.
• AARP’s tax calculator can help you predict what you’re likely to pay the IRS.
• There’s no better moment to reflect on our tax system — the system by which “we pay for civilized society,” as US Supreme Court Justice Oliver Wendell Holmes pointed out nearly 100 years ago.

In 1862, not long after joining the Union, Oregon enacted a tax on people of color. If you were Black, mixed-race, Hawaiian, or Chinese, you had to pay a tax not levied on white Oregonians. If you couldn’t afford it, you paid it off by performing road work.

How much can you make from Social Security without having to pay taxes?

Taxable property includes real property, mobile homes, and some tangible personal property used by business. Measure 5, which was passed in November 1990, restricted non-school taxes on any property to $10 per $1,000 of real market value. Facts & Figures serves as a one-stop state tax data resource that oregon income tax rate compares all 50 states on over 40 measures of tax rates, collections, burdens, and more. However, Oregon does have a vehicle use tax that applies to new vehicles purchased in Oregon and a vehicle privilege tax that applies to new vehicles purchased by Oregon residents outside of the state.

Oregon estate tax is tiered, with the tax rate increasing in line with the estate’s value. Understanding the rules can help individuals and businesses avoid unnecessary costs. Specific thresholds, calculation methods, and payment procedures determine whether a taxpayer owes a penalty. Some may also qualify for relief or waivers under certain circumstances.

The total tax rate on any particular property is calculated by adding all the local taxing district rates in the area, then multiplied by the assessed value of the property. For those preferring traditional methods, payments can be mailed via check or money order with Form OR-40-V (for individuals) or Form OR-20-V (for corporations). The mailing address varies depending on whether a payment is included with a tax return or sent separately. Payments must be postmarked by the due date—typically April 15, June 15, September 15, and January 15—to be considered on time. If the due date falls on a weekend or holiday, the deadline moves to the next business day.

• If you’re an Oregon resident and you purchase a new vehicle from a seller outside of the state, you may be exempt from paying the other state’s sales tax.
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• The state follows a similar approach to the IRS in evaluating whether the underpayment resulted from an unexpected change in income or tax law.
• Rental income is considered taxable in Oregon and must be reported on the taxpayer’s state income tax return.
• For further tax guidance and to ensure you’re not paying more tax than you need to, it’s wise to speak to an expert.

Your Income Taxes Breakdown

You can use tax calculators or consult a tax professional to get a clearer estimate. If you spent the entire tax year living outside Oregon and are not an Oregon resident, you are only required to pay Oregon income tax on income earned from sources within Oregon. 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. Tax burdens in 2020, 2021, and 2022 are all higher than in any other year since 1978. In recent years, Congress has ledger account been tossing out tax breaks for the rich and corporations like confetti at a parade. That was the case with the massive overhaul of the federal tax code under the Trump administration and in two stimulus packages in response to the pandemic.

Oregon income tax rate

• In the mid-1970s, corporations contributed almost 19 percent of all income taxes collected by the state of Oregon.
• Oregon does impose estate and inheritance taxes in the form of a transfer tax.
• Nearly all of the revenue would come from foreign, out-of-state, and rich investors.
• However, Oregon’s tax system differs from others because different portions of one’s income are taxed at various rates of the specific tax brackets they fall into.
• Oregon requires estimated tax payments if a taxpayer expects to owe at least $1,000 after subtracting withholding and refundable credits.
• In Oregon, the average property tax rate as a percentage of assessed home value is 0.77% according to the Tax Foundation.
• That top marginal rate is one of the highest rates in the country.

The first thing to know about the state of Oregon’s tax system is that it includes no sales tax. Retail Accounting This means that neither state nor local authorities collect taxes on the sale of products or services. Instead, the state generates revenue with a statewide income tax of 4.75% to 9.9%, ranking among the highest in the nation. Local governments levy property taxes, and these come in right around U.S. averages. The typical Oregon homeowner pays $3,633 a year in property taxes. Not only do they have individual and business taxes, but they also have gross margins tax and additional payroll taxes in certain jurisdictions.