How much is Oregon income tax?
Oregon income tax at 3 levels of Oregon taxable income — what is left after Oregon's own deductions and exemptions. Local income taxes are not included.
| Taxable income | Single | Married filing jointly |
|---|---|---|
| $50,000 | $4,0748.1% effective · 8.75% marginal | $3,7737.5% effective · 8.75% marginal |
| $100,000 | $8,4498.4% effective · 8.75% marginal | $8,1488.1% effective · 8.75% marginal |
| $250,000 | $23,0129.2% effective · 9.9% marginal | $21,2738.5% effective · 9.9% marginal |
What are Oregon's income tax brackets for 2026?
| Taxable income | Rate |
|---|---|
| Up to $4,300 | 4.75% |
| Over $4,300 up to $10,750 | 6.75% |
| Over $10,750 up to $125,000 | 8.75% |
| Over $125,000 | 9.9% |
| Taxable income | Rate |
|---|---|
| Up to $8,600 | 4.75% |
| Over $8,600 up to $21,500 | 6.75% |
| Over $21,500 up to $250,000 | 8.75% |
| Over $250,000 | 9.9% |
Source: ORS §316.037, checked September 10, 2026.
Can you deduct Oregon income tax on your federal return?
The federal deduction for state and local taxes (SALT) is capped at $40,400 for 2026 — $20,200 if married filing separately — and the cap shrinks toward $10,000 once modified AGI passes $505,000. A single filer with $250,000 of Oregon taxable income owes about $23,012 in Oregon income tax — 57% of that cap before any property tax.
SALT cap workaroundsDoes Oregon have a pass-through entity tax (PTET)?
Yes. A partnership or S corporation can elect to pay Oregon income tax at the entity level. The business deducts it federally, so that state tax is not limited by the SALT cap, and the owners claim an Oregon credit or exclusion for it. Deductsy's plan treats March 15 as the Oregon election or first-payment deadline; it is approximate, so confirm it with Oregon before relying on it.
PTET savings calculatorAre HSA contributions deductible in Oregon?
Yes. Oregon follows the federal treatment, so an HSA contribution — up to $4,400 with self-only coverage or $8,750 with family coverage for 2026 — lowers Oregon taxable income as well as federal.
Can you deduct federal income tax on your Oregon return?
Yes, up to $8,500 ($4,250 married filing separately). The limit steps down to nothing between $125,000 and $145,000 of AGI for a single filer, and between $250,000 and $290,000 on a joint return.
Does Oregon give a tax break for 529 plan contributions?
Yes, as a credit rather than a deduction: Oregon gives a state income-tax credit for contributions to Oregon's own 529 plan. Income limits, per-beneficiary caps and carryforwards differ by state, so check the plan's rules.
529 plan tax savings calculatorDoes Oregon take a disability or paid-leave tax out of paychecks?
Yes. Oregon employees pay OR Paid Leave through payroll: 0.6% of wages for 2026, on wages up to $184,500. It comes out on top of federal payroll taxes and Oregon income tax withholding.
Which states have tax reciprocity with Oregon?
Arizona does not tax wages an Oregon resident earns there — file the exemption certificate with that employer. It runs one way only: Arizona residents who work in Oregon ARE taxed by Oregon, and they claim the credit for it on the Oregon return rather than at home.
What is the property tax rate in Oregon?
Oregon's average effective property tax rate is 0.81% — tied for the 24th highest of 51 jurisdictions and 90% of the national average of 0.9%. That is about $810 a year for every $100,000 of home value; the rate varies widely by county and school district.
Itemize or take the standard deduction?How much does an LLC cost to keep in Oregon each year?
Deductsy budgets about $100 a year for an Oregon LLC — the annual report fee or minimum franchise tax, with a fee due every two years counted at half. Fees change, so confirm with Oregon's business filing office.
Oregon S-corp tax calculatorHow do Oregon taxes compare with neighboring states?
| State | Top income tax rate | Income tax on $100,000 (single) | Property tax (avg) |
|---|---|---|---|
| Oregon | 9.9% | $8,449 | 0.81% |
| California | 13.3% | $5,739 | 0.71% |
| Idaho | 5.3% | $5,045 | 0.49% |
| Nevada | None | $0 | 0.47% |
| Washington | None | $0 | 0.81% |
On $100,000 of taxable income a single filer's Oregon income tax is $8,449 — more than in all 4 neighboring states. The lowest is Nevada at $0; the highest is California at $5,739. Oregon's average property tax rate is higher than in 3 of 4.
Income tax is each state's own tax on the same state taxable income; local income taxes are not included.
More Oregon tax notes
- Oregon has no state sales tax.
Tax moves that matter most for Oregon
If you own an S corporation, partnership or multi-member LLC, Oregon's PTET election moves the Oregon income tax on that profit to the business, where it is deductible federally and outside the SALT cap.
An S-corp election can cut self-employment tax once profit is large enough to pay yourself a reasonable salary and still cover payroll and filing costs. The Oregon calculator adds Oregon's own entity fees and taxes to that breakeven.
With 1099 income, a Solo 401(k) can take up to $72,000 a year (2026) — usually more than a SEP-IRA at the same income. Contributions lower both federal and Oregon income tax.
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