Oregon has one of the highest state income tax rates at 9.9%, but no sales tax. Here’s your complete guide to Oregon taxes.
Oregon Tax Overview
| Tax Type | Rate | Notes |
|---|---|---|
| Income Tax | 4.75%-9.9% | Progressive brackets |
| Sales Tax | 0% | None — one of 5 states |
| Property Tax | 0.93% avg | Below national average |
| Gas Tax | $0.40/gallon | High |
Oregon Income Tax Brackets 2026
Single Filers
| Taxable Income | Tax Rate |
|---|---|
| $0 - $4,050 | 4.75% |
| $4,050 - $10,200 | 6.75% |
| $10,200 - $125,000 | 8.75% |
| Over $125,000 | 9.9% |
Married Filing Jointly
| Taxable Income | Tax Rate |
|---|---|
| $0 - $8,100 | 4.75% |
| $8,100 - $20,400 | 6.75% |
| $20,400 - $250,000 | 8.75% |
| Over $250,000 | 9.9% |
Oregon Tax Calculator
| Salary (Single) | OR Tax | Effective Rate |
|---|---|---|
| $50,000 | $3,700 | 7.4% |
| $75,000 | $5,900 | 7.9% |
| $100,000 | $8,100 | 8.1% |
| $125,000 | $10,300 | 8.2% |
| $150,000 | $12,775 | 8.5% |
| $200,000 | $17,725 | 8.9% |
| $300,000 | $27,625 | 9.2% |
No Sales Tax Offset
Oregon’s lack of sales tax provides significant savings:
| Annual Spending | Typical Sales Tax (7%) | Oregon Savings |
|---|---|---|
| $30,000 | $2,100 | +$2,100 |
| $50,000 | $3,500 | +$3,500 |
| $75,000 | $5,250 | +$5,250 |
| $100,000 | $7,000 | +$7,000 |
High spenders benefit more from no sales tax.
Oregon vs. Neighboring States
| State | Income Tax | Sales Tax | Property Tax |
|---|---|---|---|
| Oregon | 9.9% max | 0% | 0.93% |
| Washington | 0% | 10.4% max | 1.03% |
| California | 13.3% max | 7.25%+ | 0.73% |
| Idaho | 5.8% flat | 6% | 0.67% |
| Nevada | 0% | 8.23% | 0.60% |
Oregon vs. Washington Strategy
Living in Washington, working in Oregon: Pay Washington sales tax (high) but no Oregon income tax (for WA residents).
Living in Oregon, shopping in WA: Pay Oregon income tax but can shop in WA to avoid sales tax (though no sales tax in OR anyway).
Living in Oregon: No sales tax advantage for big purchases.
Oregon Standard and Itemized Deductions
Standard Deduction (2026)
| Filing Status | Amount |
|---|---|
| Single | $2,605 |
| Married Filing Jointly | $5,210 |
| Head of Household | $4,195 |
Oregon’s standard deduction is much lower than federal, making itemizing more common.
Oregon Itemized Deductions
Oregon allows many federal itemized deductions with some modifications:
| Deduction | Oregon Treatment |
|---|---|
| Federal income tax paid | Up to $7,250 deductible |
| State/local taxes | Not deductible |
| Mortgage interest | Deductible (with limits) |
| Charitable contributions | Deductible |
| Medical expenses | Deductible (3% AGI floor) |
The federal tax deduction is unique to Oregon and helps offset high income taxes.
Oregon Tax Credits
| Credit | Amount |
|---|---|
| Personal exemption credit | $219/person |
| Working Family Household Credit | Up to $8,000+ |
| Child & Dependent Care Credit | Up to $600 |
| Political Contribution Credit | Up to $100 |
| Retirement savings credit | Up to $750 |
Working Family Household Credit
Oregon’s EITC equivalent provides substantial credits for low-income workers:
- Up to 12% of federal EITC
- Refundable credit
- Can receive over $8,000
Oregon Property Tax
| County | Effective Rate | On $500K Home |
|---|---|---|
| Multnomah (Portland) | 1.07% | $5,350/year |
| Washington (suburbs) | 0.96% | $4,800/year |
| Clackamas | 0.99% | $4,950/year |
| Lane (Eugene) | 1.05% | $5,250/year |
| Marion (Salem) | 1.02% | $5,100/year |
Oregon property taxes are capped at 1.5% of assessed value and increases limited to 3% annually.
Metro Portland Taxes
Preschool For All Tax (Multnomah County):
- 1.5% on income over $125K (single) / $200K (joint)
- Additional 1.5% on income over $250K (single) / $400K (joint)
Metro Supportive Housing Tax:
- 1% on income over $125K (single) / $200K (joint)
Combined, Portland-area high earners can pay up to 12.4% in state/local income tax.
Oregon Transit Taxes
| Tax | Rate | Who Pays |
|---|---|---|
| TriMet Transit Tax | 0.8037% | Portland metro workers |
| Lane Transit District | 0.79% | Lane County workers |
| Statewide Transit Tax | 0.1% | All employees |
These are employer-withheld payroll taxes.
Oregon Capital Gains Tax
Oregon taxes capital gains as ordinary income — up to 9.9%. No special long-term rate.
| Gain Amount | OR Tax | vs. CA | vs. WA |
|---|---|---|---|
| $100,000 | $9,900 | $13,300 | $7,000 (7% LTCG) |
| $250,000 | $24,750 | $33,250 | $17,500 |
Washington’s new 7% capital gains tax applies over $262,000.
Retirement Income in Oregon
| Income Type | State Tax |
|---|---|
| Social Security | Not taxed (under income limits) |
| Federal pensions | Taxable |
| State/local pensions | Taxable |
| 401(k)/IRA | Taxable |
| Military pension | Exempt |
Oregon offers a small pension subtraction for those 62+ with modest income.
Filing Oregon Taxes
| Form | Who Files |
|---|---|
| Form 40 | Full-year residents |
| Form 40N | Nonresidents |
| Form 40P | Part-year residents |
Oregon Filing Deadline
April 15 (or next business day) — same as federal.
Tax Planning Tips for Oregonians
- Use federal tax deduction — Oregon allows up to $7,250
- Itemize if possible — Low standard deduction makes itemizing valuable
- Time income around Portland taxes — High earners in Multnomah County face extra taxes
- Consider municipal income timing — Portland preschool tax hits over $125K
- Shop carefully — No sales tax, but cross-border states may charge you
- Max retirement accounts — Reduces taxable income at 8.75-9.9%
Oregon vs. California: Tax Comparison
| Factor | Oregon | California |
|---|---|---|
| Top income tax rate | 9.9% | 13.3% |
| Sales tax | 0% | 7.25%+ |
| Property tax | 0.93% | 0.73% |
| Overall burden rank | 31 | 48 |
Oregon is more tax-friendly than California, primarily due to no sales tax.
Bottom Line
Oregon’s 9.9% top income tax rate is among the highest in the US, but the lack of sales tax provides meaningful offset, especially for high spenders. High earners in Portland face additional 2.5%+ local taxes. Overall, Oregon ranks #31 for tax burden — middle of the pack. Best for: moderate spenders who avoid Portland’s extra taxes. Less ideal for: high earners in Multnomah County.