Overview of Oregon Taxes: Oregon has a progressive income tax that ranks among the highest in the nation. The state’s median property tax bill exceeds the national median. However, Oregon has no sales tax.
Your 2025 Estimated State Income Tax:
Breakdown of Your Income Taxes
Your Annual Take-Home Pay
About This Calculator
Our income tax calculator calculates your federal, state and local taxes based on several key inputs: your household income, location, filing status and number of personal exemptions.
How Income Taxes Are Calculated
-
First, we calculate your adjusted gross income (AGI) by taking your total household income and reducing it by certain items such as contributions to your 401(k).
-
Next, from AGI we subtract exemptions and deductions (either itemized or standard) to get your taxable income. Exemptions can be claimed for each taxpayer.
-
Based on your filing status, your taxable income is then applied to the tax brackets to calculate your federal income taxes owed for the year.
-
Your location will determine whether you owe local and / or state taxes.
When Do We Update? - We check for any updates to the latest tax rates and regulations annually.
Customer Service - If you would like to leave any feedback, feel free to email info@smartasset.com.
Assumptions
Deductions
- "Other Pre-Tax Deductions" are not used to calculate state taxable income.
Credits
- The only federal credit automatically calculated is the Savers Credit, depending on your eligibility.
- We do not apply any refundable credits, like the Child Tax Credit or Earned Income Tax Credit (EITC).
- We do not apply state credits in our calculations.
Itemized Deductions
- If itemizing at the federal level, you may need to itemize at the state level too. Some states don't allow itemized deductions, which is accounted for in our calculations.
- When calculating the SALT deduction for itemized deductions, we use state and local taxes, and we assume your MAGI.
- We assume that there is no cap to itemized deductions, if a state allows them.
- We do not categorize itemized deductions (such as medical expenses or mortgage interest), which could be subject to specific caps per state.
Local Tax
- Depending on the state, we calculate local taxes at the city level or county level. We do not include local taxes on school districts, metro areas or combine county and city taxes.
- With the exception of NYC, Yonkers, and Portland/Multnomah County, we assume local taxes are a flat tax on either state taxable income or gross income.
Actual results may vary based on individual circumstances and changes in tax laws or IRS regulations. Estimates provided by this calculator do not guarantee income tax amounts or rates. Past performance is not indicative of future results.
SmartAsset.com does not provide legal, tax, accounting or financial advice (except for referring users to third-party advisers registered or chartered as fiduciaries ("Adviser(s)") with a regulatory body in the United States). Articles, opinions and tools are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual. Users should consult their accountant, tax advisor or legal professional to address their particular situation.
Find a high-yield deposit account that works for you
Taxes can really put a dent in your paycheck. But with an interest-bearing account, you can let your money work for you. Save more with these rates that beat the National Average*:
The National Average is based on the APY average for high-yield savings accounts with a minimum balance of $2,500, using data available from Bankrate.*
Taxes in Oregon
Oregon State Tax Quick Facts
- Income tax: 4.75% – 9.9%
- Sales tax: None
- Property tax: 0.78% median effective rate
- Gas tax: 40 cents per gallon of regular gasoline
The first thing to know about the state of Oregon’s tax system is that it includes no sales tax. This means that neither state nor local authorities collect taxes on the sale of products or services. Instead, the state generates revenue with a statewide income tax of 4.75% to 9.9%, ranking among the highest in the nation. Local governments levy property taxes, with the typical Oregon homeowner paying $3,895 per year in property taxes.
A financial advisor can help you understand how taxes fit into your overall financial goals. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Oregon Income Taxes
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%. That top marginal rate is one of the highest rates in the country. 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.
Income Tax Brackets
| Rate | Single Filers | Married, Filing Jointly | Married, Filing Separately | Head of Household |
|---|---|---|---|---|
| 4.75% | $0 – $4,400 | $0 – $8,800 | $0 – $4,400 | $0 – $8,800 |
| 6.75% | $4,400 – $11,050 | $8,800 – $22,100 | $4,400 – $11,050 | $8,800 – $22,100 |
| 8.75% | $11,050 – $125,000 | $22,100 – $250,000 | $11,050 – $125,000 | $22,100 – $250,000 |
| 9.90% | $125,000+ | $250,000+ | $125,000+ | $250,000+ |
Oregon generally starts with federal taxable income (or federally defined income) and then applies a set of state-specific modifications under Oregon law. Common subtractions include Social Security and Tier I Railroad Retirement benefits, interest and dividends from U.S. government obligations, and in limited cases, certain types of pension or retirement income. Other adjustments may apply depending on income levels, filing status and the type of income.
There’s also the Oregon 529 College Savings Plan tax credit. Single filers with an income between $70,000 and $100,000 can receive up to a $180 tax credit when contributing at least $720. Meanwhile, joint filers in the same income bracket can receive up to $360 when contributing at least $1,440. You can use online tax software to help file your return.
Oregon Tax Credits
There are also a number of state tax credits available to taxpayers in Oregon. Some of the most commonly claimed credits are:
- The Working Family Household and Dependent Care Credit allows low-income and moderate-income families to claim a credit on qualifying child care expenses.
- The earned income credit is available for those making up to $68,675. This tax credit can return up to $8,046.
- A $100 tax credit for political contributions is available to joint filers with taxable income of less than $150,000 and a $50 tax credit is available to other other filers with taxable income of less than $75,000.
- The residential energy credit is available to homeowners who purchase energy efficient devices or install alternative energy sources in their home.
- The retirement income credit is available to persons aged 62 or over.
Oregon Sales Tax
Oregon does not collect sales taxes of any kind, at the state or local level.
Oregon Property Tax
There are 1,200 local taxing districts in Oregon, with property tax rates varying between each one. Tax collections are managed primarily by the 36 counties in Oregon, which assess property and calculate taxes owed. Revenue from the property tax typically goes to support local services such as schools and law enforcement.
Statewide, the effective property tax rate (annual property taxes as a percentage of home value) is 0.78%. This is the 25th in the country. Because of the inherently local nature of property tax collections in Oregon, rates vary significantly between counties.
If you are interested in purchasing a home in Oregon or are looking at refinancing a property, this mortgage guide offers plenty of information on rates, the specifics of getting a mortgage in the Beaver State and details about each county.
Oregon Estate Tax
Oregon is one of a handful of states with an estate tax. Estates with a gross value of at least $1 million are required to file an estate tax return. Estates above that limit face the following rates on the value of the taxable estate:
Oregon Estate Tax Rates
| Taxable Estate | Marginal Rate |
|---|---|
| $1,000,000 – $1,500,000 | 10.00% |
| $1,500,000 – $2,500,000 | 10.25% |
| $2,500,000 – $3,500,000 | 10.50% |
| $3,500,000 – $4,500,000 | 11.00% |
| $4,500,000 – $5,500,000 | 11.50% |
| $5,500,000 – $6,500,000 | 12.00% |
| $6,500,000 – $7,500,000 | 13.00% |
| $7,500,000 – $8,500,000 | 14.00% |
| $8,500,000 – $9,500,000 | 15.00% |
| $9,500,000+ | 16.00% |
Note that these are marginal rates, so they only apply to the portion of the estate falling within that bracket.
Oregon Cigarette Tax
The cigarette tax in Oregon is $1.32 per 20-pack.
Oregon Capital Gains Tax
Capital gains in Oregon are subject to the normal personal income tax rates. That means capital gains can be taxed at a rate as high as 9.9%, depending on your total income.
Oregon Alcohol Tax
While Oregon does not have a general sales tax, it does tax the sale of alcohol. Oregon has a tax on wine at 67 cents per gallon and beer is taxed at just eight cents per gallon.