Form OR-40-P filers will need to multiply the tax by their Oregon percentage on their return. You pay different rates on different slices of taxable income — not a single flat rate on all income. Members of the armed forces and some veterans may take advantage of Military One Source tax filing software called MilTax. There is no income limit for eligible taxpayers to use MilTax to file their federal and state tax returns electronically.

Personal income tax rate charts and tables

A second tier levies an additional 1.5% on income exceeding $250,000 and $400,000, respectively. This tax is levied on residents and non-residents who work within Multnomah County. The Metro SHS tax applies a 1% rate on taxable income above $125,000 for individuals and $200,000 for joint filers, running through the 2025 tax year. This tax affects residents of the Metro region, which includes Multnomah, Clackamas, and Washington Counties. It also applies to non-residents earning income within the Metro jurisdiction.

Statewide transit individual tax return

• Volunteers can choose from roles such as tax preparer, greeter, interpreter and more.
• Employment taxes in Oregon encompass various requirements that both employers and self-employed individuals must navigate.
• H&R Block says more than half of taxpayers will qualify for its free filing option, which also is for those with simple returns.
• The corporate tax rates are 6.6% and 7.6% of taxable business income.
• The standard deduction for Oregon is adjusted annually for inflation.

Credit card payments are accepted through third-party vendors, though these vendors typically charge a small convenience fee for the service. For taxpayers who prefer to pay by check or money order, the payment must be mailed to the DOR along with the appropriate payment voucher, Form OR-40-V. ​You can drop off your tax form and make non-cash payments in person at our main office in Salem or at one of our regional field offices in Bend, Eugene, Gresham, Medford, or Portland. You may file either of the taxpayer authorization forms through Revenue Online or submit a paper form. 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.

Oregon Income Tax Table

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. The worksheets will require you to have the same type of information on hand that the calculator uses, but the calculator may give you more accurate oregon income tax rate results. To ascertain residence status, individuals should refer to their primary physical presence in Oregon. Factors include where one lives for more than half the year and the location of work or business operations.

Sales Tax

• When taxpayers are aware of their tax obligations, they can make strategic financial decisions regarding investments, retirement accounts, and other income-generating activities.
• If you withdraw amounts from your traditional IRA to pay your ex-spouse as part of your divorce settlement, those amounts are taxable to you.
• Most tax preparers can electronically file your return for you, or you can do it yourself using free or paid income tax software, like the examples listed below.
• Non-residents must file the Oregon Nonresident Income Tax Return, Form OR-40-N, to report only their Oregon-sourced income.

The intermediate rates are 6.75% and 8.75%, each applying to specific income ranges between the lowest and highest brackets. If you are a Oregon business owner, you can learn more about how to collect and file your Oregon sales tax return at the 2026 Oregon Sales Tax Handbook . The Oregon state sales tax rate is 0%, and what are retained earnings the average OR sales tax after local surtaxes is 0%. In addition, you may find the state-by-state list of local tax agencies helpful if you are looking for a form (or need contact information for your state). For example, in the state of Michigan, the SUI tax rate for new employers (with exception of construction workers) is 2.7%.

Your 2025 Federal Income Tax Comparison

We won’t ask you for personal information, such as your name or Social Security number. In addition to the Corporate Tax and Excise Tax, the State of Oregon also has a Gross Margins Tax referred to as the Corporate Activity Tax  (similar to Ohio’s CAT Tax). The CAT Tax is assessed as $250 per entity, plus 0.57% of Gross Receipts over $1 Million. There are certain deductions related to the CAT Tax, learn more about it at the Oregon Department of Revenue website – here. New residents in Oregon can access a variety of tax resources and assistance programs.

Available Tax Credits

Almost everyone can file electronically for free on IRS.gov or with the IRS2Go app. The IRS Free File program, available only through IRS.gov, offers eligible taxpayers brand-name tax preparation software packages to use at no cost. Some of the Free File packages also offer free state tax return preparation. Balancing off Accounts The software does all the work of finding deductions, credits and exemptions for you. You can save time and money by electronically filing your Oregon income tax directly with the . Benefits of e-Filing your Oregon tax return include instant submission, error checking, and faster refund response times.