What are Oregon's state income tax brackets for 2026?

Oregon levies four progressive tax brackets: 4.75% on the first $4,300 ($8,600 married joint), 6.75% on income up to $10,750 ($21,500 joint), 8.75% on income up to $125,000 ($250,000 joint), and a top marginal rate of 9.90% on all taxable income above $125,000 ($250,000 joint).

What is Oregon's federal tax subtraction?

Oregon is one of only a few states that allows taxpayers to deduct a portion of their federal income tax paid from their Oregon taxable income. For 2026, single filers and married couples can subtract up to $8,250 of federal tax liability ($4,125 if married filing separately).

What are the Portland Metro and Multnomah County income taxes?

Residents and workers in the Portland area are subject to two local voter-approved taxes on taxable income over $125,000 (single) or $200,000 (married joint): the 1.0% Metro Supportive Housing Services (SHS) tax and the 1.5% to 2.3% Multnomah County Preschool for All (PFA) tax.

2026 Oregon Tax Calculator: 9.90% Rates & Paycheck

Interactive Oregon Paycheck Calculator

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Metro / Local Jurisdiction

Qualifying Dependents ($249 credit each)

Your 2026 Oregon Take-Home Pay Summary

Where Does Your Paycheck Go? Take-Home: 0% | Fed: 0% | FICA: 0% | State: 0%

Oregon Paycheck Frequency Schedule

Frequency	Gross Pay	Federal Tax	FICA (SS + Med)	OR State Tax	Transit / Local	Net Take-Home

2026 Annual Tax Liability Breakdown

Tax Category	Taxable Base / Rate	Annual Amount	Effective %

How Oregon State & Local Income Taxes Work in 2026

Oregon does not have a general sales tax, relying heavily on progressive personal income taxes to fund state services:

1. Oregon Progressive Income Tax Brackets

Oregon assesses personal income tax using four graduated tiers:

4.75% Tier: $0 to $4,300 (Single) / $0 to $8,600 (Married Joint)
6.75% Tier: $4,300 to $10,750 (Single) / $8,600 to $21,500 (Married Joint)
8.75% Tier: $10,750 to $125,000 (Single) / $21,500 to $250,000 (Married Joint)
9.90% Tier: All taxable income exceeding $125,000 (Single) / $250,000 (Married Joint)

2. Federal Income Tax Subtraction

Oregon is one of the only states allowing taxpayers to subtract their federal income tax liability from state taxable income. For 2026, the maximum subtraction is $8,250 for single filers and married couples filing jointly ($4,125 for married filing separately). This subtraction significantly lowers net Oregon taxable income for middle and higher earners.

3. Statewide Transit Tax & Portland Metro Taxes

Oregon payroll withholdings include unique state and municipal surtaxes:

Statewide Transit Tax: 0.1% (one-tenth of one percent) levied on gross wages of all employees working in Oregon.
Metro Supportive Housing Services (SHS): 1.0% tax on taxable income exceeding $125,000 (Single) or $200,000 (Married Joint) in the Portland metropolitan area.
Multnomah County Preschool for All (PFA): 1.5% tax on taxable income over $125,000 ($200,000 Joint) plus an additional 0.8% on income over $250,000 ($400,000 Joint).

0% State Sales Tax Trade-Off: While Oregon has among the highest state income tax rates on high earners, Oregon has no state or local sales tax, balancing overall tax burden for consumer goods.

Frequently Asked Questions: Oregon Tax Calculator

What is the Oregon "Kicker" rebate?

Oregon's unique constitutional "Kicker" law returns surplus state tax revenue to individual taxpayers when general fund revenues exceed economic forecasts by more than 2%. Eligible taxpayers claim the kicker as a refundable credit on their state return.

Does Oregon tax Social Security benefits?

No. Oregon completely exempts Social Security retirement and disability benefits from state income taxation.

How does Oregon tax Washington residents working in Oregon?

Washington residents who commute to work in Oregon are subject to Oregon state income tax on all wages earned while physically performing work in Oregon, even though Washington has no state wage tax.

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