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Oregon’s tax system ranks 30th overall on the 2025 State Tax Competitiveness Index. oregon income tax rate In a graduated, or progressive, tax system like Oregon’s, the effective, or actual, tax rate you pay is a blend of tax rates. Once you’ve filed your tax return, all you have to do is wait for your refund to arrive.
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While there are many ways to show how much state governments collect in taxes, the Index evaluates how well states structure their tax systems and provides a road map for improvement. The following tax tables are supported by iCalculator™ US as part of the suite of free tax tools available in the US Tax HUB we provide for Oregon. Oregon does not collect sales taxes of any kind, at the state or local level.
State Individual Income Tax Structures
Beyond federal income taxes, your employer will also withhold Social Security and Medicare taxes from each of your paychecks. Social Security tax is withheld at 6.2% and Medicare tax at 1.45% of your wages. Your employer then matches those amounts, so the total contribution is double what you paid. If you earn wages in excess of $200,000 as a single filer, head of household or qualifying widow(er), these wages are subject to a 0.9% Medicare surtax. Married couples filing jointly pay this tax on wages that exceed $250,000, while married couples filing separately pay it on wages above the $125,000 threshold. Oregon has a graduated state individual income tax, with rates ranging from 4.75 percent to 9.9 percent.
Oregon individual income tax
In 2025, the Oregon state income tax rates range from 4.75% to 9.90%. A tax credit allows taxpayers to reduce the amount of taxes they are required to pay. This is different from a tax deduction, which reduces the amount of income that is subject to taxation. Tax credits are applied directly to the tax liability, while deductions are applied to the taxable income.
Pay income tax online
The standard deduction for a Head of Household Filer in Oregon for 2021 is $ 2,420.00. The standard deduction for a Head of Household Filer in Oregon for 2023 is $ 2,605.00. It’s a very hardworking group of individuals who are genuinely passionate about small businesses. They are backed by successful founders like Balaji Srinivasan, Biz Stone(Twitter) and others. A financial advisor can help you understand how taxes fit into your overall financial goals. If you’re ready Record Keeping for Small Business to find an advisor who can help you achieve your financial goals, get started now.
- The county tax collector collects the taxes and distributes the funds to the local districts.
- Keep in mind that this estimator assumes all income is from wages, assumes the standard deduction, and does not account for tax credits.
- The 2021 tax rates and thresholds for both the Oregon State Tax Tables and Federal Tax Tables are comprehensively integrated into the Oregon Tax Calculator for 2021.
- Here you can find how your Oregon based income is taxed at different rates within the given tax brackets.
- The State Tax Competitiveness Index enables policymakers, taxpayers, and business leaders to gauge how their states’ tax systems compare.
The study takes into bookkeeping account the state excise taxes that each state collects on items such as oil and gas, cigarettes, alcohol, and even telephone bills. DonateAs a nonprofit, we depend on the generosity of individuals like you. The trend of tax exemptions on tips, overtime, and bonuses may sound like a win for workers, but it is a shortsighted fix with long-term drawbacks. A .gov website belongs to an official government organization in the United States.