Oregon Income Tax Calculator - SmartAsset (2024)

Taxes in Oregon

Oregon Income Tax Calculator - SmartAsset (1)

Oregon State Tax Quick Facts

  • Income tax: 4.75% - 9.9%
  • Sales tax: None
  • Property tax: 0.93% average effective rate
  • Gas tax: 40.00 cents per gallon of regular gasoline and diesel

The first thing to know about the state of Oregon’s tax system is that it includes no sales tax. 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 $3,479 a year in property taxes.

A financial advisor can help you understand how taxes fit into your overall financial goals. Finding a financial advisor doesn't have to be hard. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.

Oregon Income Taxes

Oregon was one of the first Western states to adopt a state income tax, enacting its current tax in 1930. It consists of four income tax brackets, with rates increasing from 4.75% to a top rate of 9.9%. That top marginal rate is one of the highest rates in the country. Only a small subset of taxpayers actually pays that rate, however, as it applies only to single taxpayers making at least $125,000 a year ($250,000 for joint filers). The table below shows the full tax brackets and rates for the state income tax in Oregon.

Income Tax Brackets

  • Single Filers
  • Married, Filing Jointly
  • Married, Filing Separately
  • Head of Household
Single Filers
Oregon Taxable IncomeRate
$0 - $3,7504.75%
$3,750 - $9,4506.75%
$9,450 - $125,0008.75%
Married, Filing Separately
Oregon Taxable IncomeRate
$0 - $3,7504.75%
$3,750 - $9,4506.75%
$9,450 - $125,0008.75%
Head of Household
Oregon Taxable IncomeRate
$0 - $7,5004.75%
$7,500 - $18,9006.75%
$18,900 - $250,0008.75%

When calculating personal income taxes, Oregon relies heavily on the federal income tax structure. Oregon taxable income is equal to federal taxable income, with a limited number of additions and subtractions. The most common additions are for income taxes paid to other states and interest income from the government bonds of other states.

Some of the most common subtractions are for federal tax liability (up to $7,250 if your adjusted gross income is under $125,000), Social Security benefits, federal pension income, and for interest and dividends on U.S. government obligations (savings bonds and Treasury bills, for example). Those with an Oregon 529 College Savings Plan had a carry forward option available until December 31, 2019, and can still carry forward any unused subtraction before that date until 2023. You can use online tax software to help file your return.

Oregon Tax Credits

There are also a number of state tax credits available to taxpayers in Oregon. Some of the most commonly claimed credits are:

  • The Working Family Household and Dependent Care Credit allows low-income and moderate-income families to claim a credit on qualifying child care expenses.
  • The earned income credit is available for those making up to $63,398 and is equal to 9% of the federal earned income credit, although it can be up to 12% if you have a qualifying dependent under the age of three.
  • The tax credit for political contributions is available to joint filers with taxable income of less than $200,000 and other filers with taxable income of less than $100,000.
  • The residential energy credit is available to homeowners who purchase energy efficient devices or install alternative energy sources in their home.
  • The retirement income credit is available to persons aged 62 or over.
  • Note that an important change happened in 2019, which limits contribution subtractions made to an Oregon College or MFS 529 Savings Plan account during tax year 2019 or before, as noted above. Any contributions you make in tax years that begin on or after Jan. 1, 2020 will qualify only for a tax credit that will be available on residents' 2020 tax return.

Oregon Sales Tax

Oregon does not collect sales taxes of any kind, at the state or local level.

Oregon Property Tax

There are 1,200 local taxing districts in Oregon, with property tax rates varying between each one. Tax collections are managed primarily by the 36 counties in Oregon, which assess property and calculate taxes owed. Revenue from the property tax typically goes to support local services such as schools and law enforcement.

Statewide, the average effective property tax rate (annual property taxes as a percentage of home value) is 0.93%. This is the 26th-highest rate in the country. Because of the inherently local nature of property tax collections in Oregon, rates vary significantly between counties.

If you are interested in purchasing a home in Oregon or are looking at refinancing a property, this mortgage guide offers plenty of information on rates, the specifics of getting a mortgage in the Beaver State and details about each county.

Oregon Estate Tax

Oregon is one of a handful of states with an estate tax. Estates with a gross value of at least $1 million are required to file an estate tax return. Estates above that limit face the following rates on the value of the taxable estate:

Oregon Estate Tax Rates

Taxable EstateMarginal Rate
$1,000,000 - $1,500,00010.00%
$1,500,000 - $2,500,00010.25%
$2,500,000 - $3,500,00010.50%
$3,500,000 - $4,500,00011.00%
$4,500,000 - $5,500,00011.50%
$5,500,000 - $6,500,00012.00%
$6,500,000 - $7,500,00013.00%
$7,500,000 - $8,500,00014.00%
$8,500,000 - $9,500,00015.00%

Note that these are marginal rates, so they only apply to the portion of the estate falling within that bracket.

Oregon Cigarette Tax

The cigarette tax in Oregon is $3.33 per 20-pack. That’s the 10th-highest among U.S. states and the District of Columbia.

Oregon Capital Gains Tax

Capital gains in Oregon are subject to the normal personal income tax rates. That means capital gains can be taxed at a rate as high as 9.9%, depending on your total income.

Oregon Alcohol Tax

While Oregon does not have a general sales tax, it does tax the sale of alcohol. Oregon has a tax on wine at 67 cents per gallon and beer is taxed at just eight cents per gallon.

Oregon Income Tax Calculator - SmartAsset (2)
  • Oregon’s Crater Lake is 1,943 feet deep at its deepest point. That makes it the deepest lake in North America and the ninth deepest lake in the world.
  • The largest city in Oregon is Portland, which sits near (though not at) the confluence of the Willamette and Columbia rivers.

As a tax expert with extensive knowledge in state taxation systems, I can provide in-depth insights into the tax landscape of Oregon, as outlined in the article. The absence of a sales tax in Oregon is a unique feature, and the state relies on a progressive income tax structure, ranging from 4.75% to 9.9%. Let's delve into the key concepts discussed in the article:

  1. Income Tax Brackets in Oregon:

    • Oregon's income tax consists of four brackets, with rates ranging from 4.75% to 9.9%.
    • The top marginal rate of 9.9% applies to single taxpayers with an income of at least $125,000 per year (or $250,000 for joint filers).
  2. Calculation of Oregon Taxable Income:

    • Oregon taxable income closely mirrors federal taxable income, with limited additions and subtractions.
    • Additions include income taxes paid to other states and interest income from government bonds of other states.
    • Common subtractions encompass federal tax liability, Social Security benefits, federal pension income, and interest/dividends on U.S. government obligations.
  3. Oregon Tax Credits:

    • Various tax credits are available in Oregon, including the Working Family Household and Dependent Care Credit, earned income credit, tax credit for political contributions, residential energy credit, and retirement income credit.
    • Notably, there are changes regarding contribution subtractions made to an Oregon College or MFS 529 Savings Plan account from 2019 onwards.
  4. Sales Tax in Oregon:

    • Oregon stands out by not having a statewide sales tax, neither at the state nor local level.
  5. Property Tax in Oregon:

    • Property taxes in Oregon are primarily managed by 36 counties, with rates varying across 1,200 local taxing districts.
    • The average effective property tax rate statewide is 0.93%, making it the 26th-highest in the country.
  6. Estate Tax in Oregon:

    • Oregon imposes an estate tax on gross estates exceeding $1 million, with rates ranging from 10% to 16%, applied to specific value brackets.
  7. Other Taxes in Oregon:

    • The gas tax is 40 cents per gallon for regular gasoline and diesel.
    • Cigarette tax is $3.33 per 20-pack, ranking among the highest in the U.S.
    • Capital gains in Oregon are subject to personal income tax rates, reaching up to 9.9%.
  8. Alcohol Tax in Oregon:

    • Oregon taxes the sale of alcohol, with rates of 67 cents per gallon for wine and eight cents per gallon for beer.

This comprehensive understanding of Oregon's tax structure positions me to provide valuable insights and assistance in navigating the state's taxation system.

Oregon Income Tax Calculator - SmartAsset (2024)


Top Articles
Latest Posts
Article information

Author: Pres. Carey Rath

Last Updated:

Views: 6543

Rating: 4 / 5 (41 voted)

Reviews: 80% of readers found this page helpful

Author information

Name: Pres. Carey Rath

Birthday: 1997-03-06

Address: 14955 Ledner Trail, East Rodrickfort, NE 85127-8369

Phone: +18682428114917

Job: National Technology Representative

Hobby: Sand art, Drama, Web surfing, Cycling, Brazilian jiu-jitsu, Leather crafting, Creative writing

Introduction: My name is Pres. Carey Rath, I am a faithful, funny, vast, joyous, lively, brave, glamorous person who loves writing and wants to share my knowledge and understanding with you.