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%. 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. At the end of the day, the act of running payroll is pretty similar for any type of employee.

Corporate Activity Tax

Head over to the Federal income tax brackets page to learn about the Federal Income Tax, which applies in all states nationwide. The Personal Exemption, which is supported by the Oregon income tax, is an additional deduction you can take if you (and not someone else) are primarily responsible for your own living expenses. Likewise, you can take an additional dependent exemption for each qualifying dependent (like a child or family member), who you financially support. Remember https://www.facebook.com/BooksTimeInc that Oregon may have very different deduction laws from the Federal Income Tax, so you may have to write a whole new list of deductions for your Oregon income tax return.

Oregon Income Tax Calculator

Our team of pros will set everything up and import your employees’ information for you. Take a closer look at the classification of exempt and non-exempt employees or reach out to an employment or tax pro if you have more questions. Your personal salary and tax calculations, see the table below for a full breakdown and analysis of your salary and tax commitments for 2024. In recent years, Congress has been tossing out tax breaks for the rich and corporations like confetti at a parade. That was the case with the massive overhaul of the federal tax code under the Trump administration and in two stimulus packages in response to the pandemic. Though the Oregon legislature has disconnected from some of these, too often it has failed to act in the interest of the vast majority of Oregonians, letting tax breaks for the rich and corporations become part of Oregon law.

Industrial Property

Married couples filing jointly pay 1.5% on income above $200,000 and 3% on income above $400,000. Exactly how much your employer deducts from your wages for federal income taxes depends on factors like your marital status, salary and whether you have any dependents. It’s also worth noting that the IRS made major revisions to the W-4 in recent years.

Personal Income Tax

• Under the tax created by Measure 118, Oregon businesses would be significantly disadvantaged against their larger and out-of-state rivals.
• Meanwhile, the greater Portland area’s Metro Supportive Housing Services Tax is a 1% levy on taxable income above $125,000 for individuals and $200,000 for married couples filing jointly.
• Taxes are delicate, which is why it is important for you to use the right tools to calculate how much you owe the government in taxes.
• For previous years’ tax rates, refer to the tax charts on the last page of Publication OR-17.
• The new Oregon child tax credit, known as the “Oregon Kid’s Credit,” is worth up to $1,000 and is completely refundable.
• Oregon has a progressive income tax that ranks among the highest in the nation.
• The EITC rates and thresholds are adjusted annually to reflect changes in the economy and cost of living.

If you fall into this camp, make sure that during tax season you look into possible deductions to help recoup the money you spend on the “employer” portion of FICA taxes. For help filing your taxes and maximizing your deductions, consider working with a financial advisor who specializes in taxes. The 2023 tax rates and thresholds for both the Oregon State Tax Tables and Federal Tax Tables are comprehensively integrated into the Oregon Tax Calculator for 2023. This tool is freely available and is designed to help you accurately estimate your 2024 tax return. The 2024 tax rates and thresholds for both the Oregon State Tax Tables and Federal Tax Tables are comprehensively integrated into the Oregon Tax Calculator for 2024. This tool is freely available and is designed to help you accurately estimate your 2025 tax return.

• While the personal income tax is based on a taxpayer’s ability to pay, Oregonians pay other taxes not connected to how much someone can afford to pay.
• When you add up all state and local taxes, Oregon’s tax structure is actually regressive – meaning low-income Oregonians pay a higher share of their income in taxes than the richest Oregonians.
• Oregon has $10,214 in state and local debt per capita and has an 88 percent funded ratio of public pension plans.
• When calculating personal income taxes, Oregon relies heavily on the federal income tax structure.
• To e-file your Oregon and Federal income tax returns, you need a piece of tax software that is certified for eFile by the IRS.

In the following tables, we break down your tax return line by line to show how your tax is calculated including non-refundable tax deductions. If your employer calculates you monthly salary in this way, the below calculator illustrates the amounts you should expect to pay in Federal Tax, State Tax, Medicare, Social Security and so on. The Tax and Take home example below for an annual salary of $ 77,000.00 is basically like a line by line payslip example. High property taxes levied not only on land but also on buildings and structures can discourage investment in infrastructure, which businesses would have to pay additional tax on. Retail sales taxes are an essential part of most states’ revenue toolkits, responsible for 32 percent of state tax collections and 13 percent of local tax collections (24 percent of combined collections).

Statistics and Analysis Calculators

You must have an Oregon Tax Information Authorization and Power of Attorney for Representation income summary form. Kiplinger is part of Future plc, an international media group and leading digital publisher.

Calculate Your Income Taxes in These Other States

Sports stadium subsidies are salient political gimmicks designed to appear as if politicians are providing tangible benefits to taxpayers. The empirical evidence shows repeatedly that stadium subsidies fail to generate new tax revenue and new jobs or attract new businesses. Tax burdens rose across the country as pandemic-era economic changes caused taxable income, activities, and oregon state income tax property values to rise faster than net national product. Tax burdens in 2020, 2021, and 2022 are all higher than in any other year since 1978. Qualifying deductions might include an itemized deduction, the Oregon standard deduction, exemptions for dependants, business expenses, etc. Oregon does not collect sales taxes of any kind, at the state or local level.

If you receive a U.S. government pension for service before October 1991, you may be entitled tosubtract all or part of that pension on your Oregon return. Oregondoesn’t tax Social Security or Railroad Retirement Board benefits. After entering it into the calculator, it will perform the following calculations. While taxes are a part of life, you can play a role in how much comes out of your paycheck.