Oregon has a progressive state income tax with rates ranging from 4.75% to 9.9%. Oregon is unique in that it has no sales tax, relying more heavily on income tax for revenue.
Oregon Tax Brackets (2026)
| Taxable Income (Single) | Tax Rate |
|---|---|
| $0 - $4,050 | 4.75% |
| $4,050 - $10,200 | 6.75% |
| $10,200 - $125,000 | 8.75% |
| $125,000+ | 9.9% |
Oregon adjusts tax brackets annually for inflation. These figures are based on Oregon Department of Revenue guidelines.
No Sales Tax
Oregon is one of five states with no statewide sales tax. While this doesn't directly affect your paystub, it means:
- More purchasing power for your take-home pay
- State relies more on income tax revenue
- Higher income tax rates compared to some states
What You'll See on Your Paystub
An Oregon worker's paystub includes both federal income tax withholding and state deductions:
| Deduction | Rate | Notes |
|---|---|---|
| Federal Income Tax | Varies | Based on W-4 and income |
| Social Security | 6.2% | Up to $181,200 wage base |
| Medicare | 1.45% | No wage limit |
| Oregon State Income Tax | 4.75% - 9.9% | Based on income and filing status |
| Statewide Transit Tax | 0.10% | All Oregon wages |
Oregon-Specific Payroll Taxes
Statewide Transit Tax
Oregon imposes a 0.10% statewide transit tax on wages:
- Rate: 0.10% (0.001) of wages
- Who pays: Employees
- No wage cap: Applies to all wages
Paid Leave Oregon
Oregon's Paid Leave program requires contributions from both employers and employees:
- Total rate: 1% of wages
- Employee portion: 60% of total (0.6%)
- Employer portion: 40% of total (0.4%)
- Wage cap: Social Security wage base ($181,200 in 2026)
Local Taxes
Some Oregon cities impose additional local income taxes:
| Location | Tax Rate | Notes |
|---|---|---|
| Portland Metro | 1% | Supportive Housing Services Tax (income over $125k single / $200k joint) |
| Multnomah County | 1.5% | Preschool for All Tax (income over $125k single / $200k joint) |
High earners in the Portland metro area can face combined state and local income tax rates exceeding 12%.
Oregon vs. Washington
Oregon and Washington offer an interesting tax comparison for Pacific Northwest workers:
| Tax Type | Oregon | Washington |
|---|---|---|
| Income Tax | 4.75% - 9.9% | None |
| Sales Tax | None | 6.5% - 10.5% |
| Property Tax | ~0.9% | ~0.9% |
Some workers live in Washington (no income tax) and shop in Oregon (no sales tax) to minimize their overall tax burden.
Comparing Take-Home Pay
Here's how a $75,000 annual salary in Oregon compares to other states:
| State | State Tax Rate | Annual State Tax |
|---|---|---|
| Oregon | ~8% | ~$5,100 |
| Washington | 0% | $0 |
| California | ~6% | ~$3,200 |