The most prominent feature is the state’s unique “Kicker” refund, officially known as the Refundable Tax Credit. This mechanism is triggered when state revenue collections exceed the official biennial forecast by at least two percent. You can save time and money by electronically filing your Oregon income tax directly with the .

• The state’s Earned Income Credit (EIC) is a refundable credit designed to mirror the federal EIC.
• Unlike a Value Added Tax (VAT), the Oregon sales tax only applies to end consumers of the product.
• If you would like to get a more accurate property tax estimation, choose the county your property is located in from the list on the left.
• If the calculated Kicker amount exceeds the current year’s tax liability, the taxpayer receives the remainder as a direct payment.
• Since 1993, the income tax brackets have been indexed to changes in the Consumer Price Index.
• Merchants may be required to attach tax stamps to taxable merchandise to show that the excise tax was paid.
• The Oregon Department of Consumer and Business Services (DCBS) mailed postcards to employers announcing the workers’ compensation final rates for 2026.

Do no-income-tax states have higher other taxes?

For more information and to access official forms and guidance, visit the Oregon Department of Revenue’s official website. Oregon forgoes a sales tax tax rate in oregon but doubles down on other forms of taxation. The state has a complex and progressive individual income tax system with four tax brackets, a top marginal rate of 9.9 percent, and a personal exemption structured as a tax credit. Portland has the highest combined local income tax rate in the nation (4 percent), adding an extra layer of tax burden for residents of the state’s largest city.

How to Use This Calculator

• It’s also important to remember federal estate tax also applies if your estate is above a certain threshold ($13.61 million in 2024 for individuals).
• This typically includes wages earned for work performed in the state or income from real property located within the state.
• Net income under $1 Million is taxed at 6.60%, everything above $1 Million is taxed at 7.60%.
• The most prominent feature is the state’s unique “Kicker” refund, officially known as the Refundable Tax Credit.
• In addition to the federal estate tax, which has a top marginal rate of 40 percent, 12 states and the District of Columbia impose estate taxes, while five states levy inheritance taxes.

Oregon’s high income taxes are partially due to the fact that Oregon has no state sales tax. Tax brackets for earnings under under $125,000 are indexed for inflation and adjusted yearly, while tax brackets over $125,000 are only changed explicitly by statute. To help offset high state income taxes, Oregon taxpayers can deduct up to $6,100 of Federal income tax from their Oregon taxable income.

State Business Taxes in Oregon

The Real Market Value is the estimated price a property would sell for in a transaction between a willing buyer and a willing seller on January 1 of the assessment year. The MAV is established by state constitutional amendment and is the primary factor limiting the growth of property taxes. A part-year resident moved into or out of Oregon during the tax year. Part-year residents must calculate tax liability on income earned while a resident, plus any Oregon-sourced income earned while a non-resident. Tax-Rates.org provides easy access to five of the most commonly used Oregon income tax forms, in downloadable PDF format. For all of the tax forms we provide, visit our Oregon tax forms library or the ‘s tax forms page.

For example, Texas has no income tax but property taxes averaging 1.60% of home value compared to 1.11% nationally. Higher deductions reduce taxable income and lower effective tax rates. All filers can get their tax using the personal income tax calculator instead of using the tax rate charts or tables in the return instructions. Form OR-40-P filers will need to multiply the tax by their Oregon percentage on their return. When calculating your Oregon income net sales tax, keep in mind that the Oregon state income tax brackets are only applied to your adjusted gross income (AGI) after you have made any qualifying deductions.

The Paid Leave contribution rate will continue to be 1% of subject wages up to $184,500 per employee for 2026. Employers and employees each pay a portion of the contribution rate, with employees paying 60% and employers (those with 25 or more employees) paying 40%. Each November, the Oregon Employment Department (OED) notifies employers of their tax and contribution rates for the next calendar year. On November 14, OED mailed each employer their 2026 rate information for both Paid Leave Oregon and Unemployment Insurance. Employers can also find 2026 tax and contribution rate information in their Frances Online accounts, posted on November HOA Accounting 15.

Oregon Tax Credits

TurboTax makes it simple to maximize your refund and keep more of what you’ve earned. ​Yes.If you change your permanent residence to Oregon, your pension income, along with allother income regardless of source, is taxable in Oregon. Depending on your ageand income, you may be entitled to a retirement income credit on your Oregonreturn.