Oregon State Income Tax Rates and Brackets by Tax Year

Oregon has a graduated-rate income tax, ranging from 4.75 to 9.9 percent across four income brackets. The standard deduction, which Oregon has, is a deduction that is available by default to all taxpayers who do not instead choose to file an itemized deduction. Qualifying deductions might include an itemized deduction, the Oregon standard deduction, exemptions for dependants, business expenses, etc. Oregon has four marginal tax brackets, ranging from 4.75% (the lowest Oregon tax bracket) to 9.9% (the highest Oregon tax bracket). Each marginal rate only applies to earnings within the applicable marginal tax bracket.

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According to analysis by VisaVerge.com, Oregon’s reliance on income tax and its progressive rate oregon income tax rate structure make it especially important for newcomers to understand their obligations and plan accordingly. However, Oregon does have a vehicle use tax that applies to new vehicles purchased in Oregon and a vehicle privilege tax that applies to new vehicles purchased by Oregon residents outside of the state. The tax must be paid before the vehicle can be titled and registered in Oregon.

Is Oregon an excellent place to live for taxes?

It is always advisable to consult with a tax professional or stay informed through reliable sources to ensure compliance with any changes in tax laws that may affect capital gains in Oregon in the future. If you’re unable to file your Oregon tax return by the April 15 deadline, you can request an extension. An extension allows you additional time Bookkeeping for Startups to file your return but does not extend the time to pay any tax due. To avoid penalties and interest, pay any estimated tax owed by the original due date. For more information on filing extensions, visit the Oregon Department of Revenue’s website.

Oregon State Income Tax Rates and Brackets for 2025 Explained

An extension to file, typically until October 15, 2025, extends the time to file the return but not the time to pay any taxes owed. Estimated tax payments may be required quarterly if an individual expects to owe $1,000 or more in tax after withholding and credits. The requirement to file an Oregon income tax return depends on residency status and income thresholds.

• If the search results indicate a jurisdiction of Multnomah County, your address is within Multnomah County’s jurisdiction.
• The requirement to file an Oregon income tax return depends on residency status and income thresholds.
• Deductions and credits can reduce an individual’s Oregon income tax liability.
• The Division does not waive properly assessed interest, and all outstanding tax and interest must be paid in order to waive penalties.
• Oregon does not have a specific capital gains tax, and residents are not taxed on their capital gains at the state level.
• Oregon imposes a state income tax on its residents and on income earned within the state, serving as a significant source of revenue for various public services.

Property values are assessed, and local tax rates are applied to this assessed value. A tax credit allows taxpayers to reduce the amount of taxes they are required to pay. This is different from a tax deduction, which reduces the amount of income that is subject to taxation. Tax credits are applied directly to the tax liability, while deductions are applied to the taxable income. You could consider it a bit of a tradeoff, though, since Oregon’s income tax rates are among the highest in the country. However, Oregon’s tax system differs from others because different portions of one’s income are taxed at various rates of the specific tax brackets they fall into.

Personal Tax Extension

Local jurisdictions can impose an additional tax of up to 3%, bringing the total potential tax rate to 20%. Oregon also has an estate tax, which applies to estates valued over $1 million, with marginal rates ranging from 10% to 16% on the portion exceeding this exemption. The rate depends on the tax rate approved by local voters and the limits established by the Oregon contribution margin Constitution. Most properties are taxed by a number of districts, such as a city, county, school district, community college, fire district or port. The total tax rate on any particular property is calculated by adding all the local taxing district rates in the area, then multiplied by the assessed value of the property. The county assessor verifies the tax rates and levies submitted by each local taxing district on an annual basis.

• Oregon has a graduated state individual income tax, with rates ranging from 4.75 percent to 9.9 percent.
• It’s essential to gather all necessary documents, such as W-2s, 1099s, and records of other income, before filing.
• 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).
• Property Taxes in Oregon – The average property tax rate for residential property in the state of Oregon is 0.94%, which is in line with other states as property tax as a percent of a taxpayer’s main home.
• It’s important to review the Oregon Department of Revenue’s website or consult with a tax professional to ensure you’re taking advantage of all available deductions.
• The State of Oregon collects $6,920 in state and local tax collections per capita.

Oregon’s economic nexus standards mean businesses with no physical presence may still be taxed if they derive substantial revenue from in-state customers. If you are a full-year resident of Metro, you are required to file a Metro SHS personal income tax return if your Oregon taxable income for the tax year is more than the tax year’s income threshold for your filing status. These taxes are not included on your Oregon tax return and must be filed with and paid to the City of Portland Revenue Division. Oregon has a graduated income tax, with four tax brackets and varying rates. How much you’ll pay depends on your income, filing status, and the deductions or credits you qualify for.

Once you’ve filed your tax return, all you have to do is wait for your refund to arrive. If you want to check the status of your Oregon tax refund, you can visit the Oregon Income Tax Refund page. If you’re an Oregon resident and you purchase a new vehicle from a seller outside of the state, you may be exempt from paying the other state’s sales tax. Complete an Oregon Business Registry Resale Certificate​ and give it to the out-of-state seller at the time of purchase. The seller may accept this certificate and exempt the transaction from their state’s sales/use/transaction tax, but they aren’t required to accept it.

If you have requested an extension of time to file your tax return, your payment is still due on the original due date. Oregon’s state income tax brackets range from 4.75% to 9.9%, depending on your income and filing status. For most taxpayers, state income taxes for 2024 are due on April 15, 2025.

• Compliance requires quarterly estimated payments and detailed record-keeping.
• Monthly interest is assessed on the 16th of each month on tax that remains unpaid after the original return due date until the tax is paid in full.
• Staying informed about Oregon’s tax system will help you make smart financial decisions, whether you’re a long-time resident, a new arrival, or someone with a pending application.
• A Voluntary Disclosure Program allows taxpayers to settle unpaid liabilities while reducing penalties, encouraging compliance before enforcement actions escalate.
• In Oregon, these capital gains are typically taxed as part of the individual’s or corporation’s overall income tax liability.
• Be sure to discuss fees and services upfront before engaging their services.

Payments can be made online through Oregon Revenue Online, either directly from a bank account or by credit or debit card. Another method is to mail a check or money order along with Form OR-40-V, the payment voucher. For significant noncompliance, the state may garnish wages, levy bank accounts, or place liens on property. Businesses failing to remit payroll or withholding taxes can face personal liability. Oregon also shares information with the IRS and other states, increasing detection for those attempting to conceal income or evade taxes. Oregon’s property tax system is governed by Measures 5 and 50, which cap annual assessed value increases at 3% unless significant improvements are made.