Oregon tax summary for 2026
| Tax on wages | Graduated brackets |
|---|---|
| Starting point | Federal adjusted gross income |
| Rates (single) | 4.75% – 9.9% |
| Standard deduction | Single $2,900 · Married filing jointly $5,800 · Head of household $4,650 · Married filing separately $2,900 |
| Personal exemption | Single $260 · Married filing jointly $520 · Head of household $260 · per dependent $260 — a credit subtracted from tax Phase-out: Single and Married filing separately: by income: the full amount at $100,000 or less; none over $100,000. Married filing jointly and Head of household: by income: the full amount at $200,000 or less; none over $200,000. |
| Federal income tax deduction | Federal income tax is deductible; cap: single $8,750, married filing jointly $8,750, head of household $8,750, married filing separately $4,375; the cap phases down — Single and Married filing separately: by income: the full amount below $125,000; 80% of the full amount at $125,000 or more; 60% of the full amount at $130,000 or more; 40% of the full amount at $135,000 or more; 20% of the full amount at $140,000 or more; none at $145,000 or more. Married filing jointly and Head of household: by income: the full amount below $250,000; 80% of the full amount at $250,000 or more; 60% of the full amount at $260,000 or more; 40% of the full amount at $270,000 or more; 20% of the full amount at $280,000 or more; none at $290,000 or more. |
| Employee payroll taxes | Paid Leave Oregon – employee share, Statewide Transit Tax (STT) |
| Local income taxes | Yes — 2 in our data |
Phase-outs, income tables and recapture use your federal adjusted gross income as the income measure; the state’s own definition of income can differ slightly.
Oregon income tax brackets 2026
Rates apply to Oregon taxable income, after the deductions above.
| Rate | Single: income over | Married filing jointly: income over | Head of household: income over | Married filing separately: income over |
|---|---|---|---|---|
| 4.75% | $0 | $0 | $0 | $0 |
| 6.75% | $4,550 | $9,100 | $9,100 | $4,550 |
| 8.75% | $11,400 | $22,800 | $22,800 | $11,400 |
| 9.9% | $125,000 | $250,000 | $250,000 | $125,000 |
Oregon employee payroll taxes
| Program | Employee rate | Wage base | Annual maximum |
|---|---|---|---|
| Paid Leave Oregon – employee share 2026 total contribution rate: 1% of wages up to $184,500 (2026 Social Security taxable maximum). Employees pay 60% of the total (0.006). Large employers (25+ employees) pay 40%; small employers (<25) are exempt from the employer share. Rate unchanged from 2025. | 0.6% | $184,500 | $1,107.00 |
| Statewide Transit Tax (STT) 0.1% on wages of Oregon residents (all wages wherever work is performed) and nonresidents for services performed in Oregon. No wage cap. Employer is the taxpayer of record; employer withholds and remits. Nonresident employees of out-of-state employers are responsible for filing Form OR-STI directly if employer does not withhold. | 0.1% | No cap | — |
Local income taxes in Oregon
Two overlapping personal income taxes apply to workers in the Portland-metro area: (1) Portland Metro Supportive Housing Services (SHS) Tax applies to Metro District residents and nonresidents with Metro-source income; (2) Multnomah County Preschool for All (PFA) Tax applies to county residents and nonresidents with county-source income. Both use Oregon taxable income (OR-40 line 19 for residents) as the base. Employer withholding is optional (employee opt-in) unless employee earns ≥$200,000; above that threshold employers must withhold. Taxes are filed on personal income tax returns through the Metro/Multnomah Revenue Division. Basis: Oregon taxable income; applies to residents and nonresidents with income from Portland Metro District or Multnomah County sources.
| Jurisdiction | Resident rate | Nonresident rate |
|---|---|---|
| Portland Metro Supportive Housing Services (SHS) Tax Metro District residents; nonresidents with Metro-source income | Graduated | — |
| Multnomah County Preschool for All (PFA) Income Tax Multnomah County residents; nonresidents with county-source income | Graduated | — |
Worked example: $65,000, single, paid biweekly
Computed by the same engine as the calculator, with no pre-tax deductions and no local tax.
| Line | Per paycheck | Annual |
|---|---|---|
| Gross pay | $2,500.00 | $65,000 |
| Federal income tax | $216.15 | $5,620 |
| Social Security | $155.00 | $4,030 |
| Medicare | $36.25 | $943 |
| Oregon income tax | $167.81 | $4,363 |
| Paid Leave Oregon – employee share | $15.00 | $390 |
| Statewide Transit Tax (STT) | $2.50 | $65 |
| Take-home pay | $1,907.29 | $49,590 |
Effective tax rate 23.7%; tax on the next dollar earned 29.1%. Oregon taxable income is $56,480, and an exemption credit of $260 is subtracted from the tax. Adding Portland Metro Supportive Housing Services (SHS) Tax local tax would cost $0 a year.
Second example: $120,000, married filing jointly, two children
Take-home $96,519 a year ($3,712.27 biweekly). Federal income tax $5,640 after a $4,400 Child Tax Credit, Social Security and Medicare $9,180, Oregon income tax $7,821, state payroll taxes $840.
How the Oregon estimate is calculated
- Start from federal adjusted gross income — wages minus traditional 401(k) and Section 125 deductions.
- Subtract the Oregon standard deduction for your filing status. Personal exemptions are a credit taken off the tax at the end, reduced by the income phase-out (dependents = the number of children you enter). Subtract federal income tax, up to the cap, which phases down with income.
- Apply the brackets.
- Add Paid Leave Oregon – employee share and Statewide Transit Tax (STT) on wages after Section 125 deductions, up to each program’s wage base or annual cap.
- If you pick a locality, add local tax on Oregon taxable income.
- Divide the annual total by your number of paychecks.
What this Oregon calculator does not model
- Additional standard deduction for age 65+ or blind
- Oregon Earned Income Credit, Oregon Kids Credit, political contribution credit and other credits
- Qualified business income reduced rate, farm capital gain rate, farm income averaging
- Oregon itemized deductions
- Part-year and nonresident apportionment
- Portland Metro SHS and Multnomah County PFA taxes are handled as local taxes (see local data)
Data notes
- Return-side 2026 figures come from DOR Publication OR-ESTIMATE (2026), which labels them 'Estimated Oregon indexed figures for tax year 2026': standard deduction $2,900 single/MFS, $4,650 HOH, $5,800 MFJ; personal exemption credit $260; federal tax subtraction $0 to $8,750. Final 2026 figures are published with the 2026 OR-40 instructions (not yet out as of 2026-10-07), hence confidence low. For 2025 the estimate publication rounded the standard deduction down ($2,800 estimated vs $2,835 final).
- The previous file used the WITHHOLDING formula's standard deduction ($2,910 / $5,820) and stored the exemption credit as $0; both replaced with return-side figures. The withholding formula is kept as a comparison source only.
- Brackets (OR-ESTIMATE 2026 rate charts): single/MFS 4.75% to $4,550, 6.75% to $11,400, 8.75% to $125,000, 9.9% above; MFJ/HOH/QSS $9,100 / $22,800 / $250,000. The $125,000 / $250,000 top thresholds are not indexed.
- Personal exemption credit modeled as a credit of $260 per exemption (taxpayer, spouse, each dependent). MFS federal tax subtraction limit $4,375 is half of $8,750, following the OR-40 instructions' pattern ($4,250 for 2025).
- Phase-outs now modeled. Exemption credit: $0 when federal AGI is over $100,000 (single/MFS) or $200,000 (MFJ/HOH) (2026 OR-ESTIMATE worksheet note). Federal tax subtraction limit: ORS 316.695(3)(b) sets the steps at $5,500 / $4,400 / $3,300 / $2,200 / $1,100 (that is 100% / 80% / 60% / 40% / 20%) for AGI below $125,000, $125,000–$129,999, … $140,000–$144,999 ($250,000–$289,999 joint/HOH), each indexed; the 2025 OR-40 Table 4 shows $8,500 / $6,800 / $5,100 / $3,400 / $1,700. The 2026 steps are DERIVED as those percentages of the estimated $8,750 maximum ($7,000 / $5,250 / $3,500 / $1,750; MFS half) — any $50 rounding of the indexed statutory steps gives the same figures, but DOR has not printed the 2026 table yet.
Sources
- State income tax: 2026 Publication OR-ESTIMATE, Oregon Estimated Income Tax Instructions (estimated indexed figures for tax year 2026 and 2026 rate charts) (read 2026-10-07)
- State income tax: 2025 Publication OR-40-FY Instructions (federal tax subtraction phase-down table, MFS limit, exemption credit AGI limits) (read 2026-10-07)
- State income tax: ORS 316.695 – Modification of taxable income (federal tax subtraction limits and phase-down steps) (read 2026-10-07)
- State income tax: Oregon Withholding Tax Formulas 2026 (150-206-436) – withholding values for comparison only (read 2026-10-07)
- Paid Leave Oregon – employee share: Unemployment Insurance tax and Paid Leave Oregon contribution rates – Oregon Employment Department (read 2026-10-07)
- Statewide Transit Tax (STT): 2026 Oregon Combined Payroll Tax Report (Form 150-211-155) – Oregon DOR (read 2026-10-07)
- Local income tax: Metro/Multnomah County OPT Form 2026 (Metro SHS and PFA Tax Tables) – Metro Revenue Division (read 2026-10-07)
Federal figures come from the IRS and SSA; see the methodology page.
Compare nearby and similar states
Neighboring states: California, Idaho, Nevada, Washington
States with a similar tax setup: Hawaii, Delaware, Virginia, New York, Minnesota, Connecticut
See every state side by side in the salary comparison by state, or browse all state paycheck calculators.