Oregon Tax Rates & Rankings

The average effective property tax rate in Oregon is slightly lower than the national average at 0.86%. However, because home prices in Oregon tend to be fairly high, many Oregon homeowners spend more than $3,633 annually on property taxes. Are you a single parent who supports a child or qualifying person? Instead of sales and use tax, the Oregon legislature generates revenue through higher income and property taxes.

What are Federal Taxes & Why Do We Pay Them?

Taxpayers will use these Record Keeping for Small Business rates when filing their returns in early 2026. It’s important to note that withholding and estimated tax payments throughout 2025 should reflect these rates to avoid underpayment penalties. Oregon collects a state corporate income tax at a maximum marginal tax rate of 7.600%, spread across two tax brackets.

Oregon Tax Guide 2025

• The state and each county assessor determine the value of property in each county.
• Our calculator factors in these state-specific rates to give you the most accurate estimate.
• These credits can make a big difference when it’s time to file your taxes.
• The state of Oregon does have an estate tax that ranges from 10% to 16% depending on the size of the estate.
• A relative, boy- or girlfriend, family member, or other person might qualify as an Other Dependent on your tax return.
• Property tax statements are mailed by October 25th for the tax year running from July 1 to June 30.

But the above chart provides a rather crude measurement of comparative state and local tax burdens because everybody is lumped together regardless of income. Depending on your income, you might have to pay more (or less) than this chart indicates. The federal standard deduction for a Head of Household Filer in 2021 is $ 18,800.00. As mentioned, property tax is an important source of revenue for the state. Individuals who work or reside in parts of Multnomah, Washington, and Clackamas counties are subject to the TriMet transit district tax of 0.8137% of wages. The Lane County Mass Transit District levies a tax of 0.79% of wages on residents and workers within its boundaries.

If I sell my home in another state after moving to Oregon, am I subject to Oregon income tax on the sale?

A common addition is interest or dividends from bonds issued by states other than Oregon. Facts & Figures serves as a one-stop state tax data resource that compares all 50 states on over 40 measures of tax rates, collections, burdens, and more. For previous years’ tax rates, refer to the tax charts on the last page of Publication OR-17. TurboTax makes it simple to maximize your refund and keep more of what you’ve earned.

• Because Oregon’s tax system is progressive, the impact varies depending on income level, filing status, and eligibility for deductions or credits.
• The primary deadline for filing and paying Oregon state income tax for the 2024 tax year is April 15, 2025.
• You could consider it a bit of a tradeoff, though, since Oregon’s income tax rates are among the highest in the country.
• If you’re ready to find an advisor who can help you achieve your financial goals, get started now.

• Full-year residents must file if their gross income exceeds a certain amount based on their filing status.
• Oregon does impose estate and inheritance taxes in the form of a transfer tax.
• Oregon has a tax on wine at 67 cents per gallon and beer is taxed at just eight cents per gallon.
• Census Bureau, the average American household spends $2,690 on real estate property taxes.
• 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.

To qualify, you must have household income of no more than $58,000 in 2024. You also must have owned and occupied your home for at least state income tax rate oregon five years prior to application. Start one or more free state income tax calculators and get an estimate of your state taxes.

This means that, on average, taxpayers pay about 6% of their income in state taxes, though the exact amount depends on income level and eligibility for deductions. When calculating personal income taxes, Oregon relies heavily on the federal income tax structure. Oregon taxable income is equal to federal taxable income, with a limited number of additions and subtractions.

And some states apply their tax rates to taxable income, while others use adjusted gross income. The Income tax rates and personal allowances in Oregon are updated annually with new tax tables published for Resident and Non-resident taxpayers. The Tax tables below include the tax rates, thresholds and allowances included in the Oregon Tax Calculator 2020. The Tax tables below include the tax rates, thresholds and allowances included in the Oregon Tax Calculator 2021. https://bruhclub.com/how-does-a-k1-loss-affect-my-taxes/ Oregonians have had many opportunities to vote to have a sales tax, but except for very special forms of sales tax, always voted against them. Many of the things that in other states would be paid for by a sales tax are paid for by personal income tax and property tax.

Overview of Oregon Taxes

The state credit is 9% for most filers and 12% for those with a dependent under age three. The Oregon Kids Credit provides up to $1,000 per child for dependents aged five and under for low-income families. The Political Contribution Credit allows up to $50 for single filers and $100 for joint filers with an adjusted gross income below certain limits. For the 2024 tax year, the rates are 4.75%, 6.75%, 8.75%, and 9.9%.

• This tax is a significant revenue source, contributing over 80% of the state’s general fund and lottery funds budget.
• Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more – straight to your e-mail.
• Oregon’s tax system ranks 30th overall on the 2025 State Tax Competitiveness Index.
• The state fully exempts Social Security retirement benefits from taxation.
• Previously, she was a copy editing intern at NerdWallet through the Dow Jones News Fund internship program.
• Oregon offers several tax credits that directly reduce the tax you owe.

Federal Married (Joint) Filer Tax Tables

Oregon taxes income from retirement accounts like a 401(k) or an IRA, though, at the full state income tax rates. The state has no sales tax, along with property taxes that are slightly below average. The requirement to file an Oregon income tax return depends on residency status and income thresholds.