Oregon Income Tax Rates for 2025

Oregon does impose estate and inheritance taxes in the form of a transfer tax. Oregon is one of a handful of states in the US that does not have a general sales tax or use tax. The federal standard deduction for a Head of Household Filer in 2023 is $ 20,800.00. When you prepare and eFile your Tax Return the eFile Tax App will apply the correct standard deductions for you or you can apply the itemized deduction method.

S corporation minimum tax and tax rates

• Oregon has a graduated state individual income tax, with rates ranging from 4.75 percent to 9.9 percent.
• In Oregon, different tax brackets are applicable to different filing types.
• The Tax tables below include the tax rates, thresholds and allowances included in the Oregon Tax Calculator 2025.
• The structure is especially relevant for immigrants and newcomers, who may be used to different tax systems in other states or countries.
• That top marginal rate is one of the highest rates in the country.
• All Social Security income is fully exempt from state income tax, regardless of income level.

They are also one of the few states that also has an estate tax. These state income tax rates apply to income earned in 2025, which is reported on tax returns filed in 2026. To learn more about how your state income tax rates work, visit your state’s taxation and revenue department website. While the state income taxes deal a heavy hit to some earners’ paychecks, Oregon’s tax system isn’t all bad news for your wallet. One of Oregon’s redeeming tax qualities is its absence of state or local sales taxes.

Why do you need the Social Security number(s) of the owner or officer(s) on my withholding account?

Oregon has a graduated state individual income tax, with rates ranging from 4.75 percent to 9.9 percent. Oregon has a graduated corporate income tax, with rates ranging from 6.6 percent to 7.6 percent. Oregon has a 0.77 percent effective property tax rate on owner-occupied housing QuickBooks Accountant value. This includes Oregon income tax withholdings, unemployment contributions, Workers’ Benefit Fund assessment payments, and transit taxes.

• Exactly how much your employer deducts from your wages for federal income taxes depends on factors like your marital status, salary and whether you have any dependents.
• Choose any state from the list above for detailed state income tax information including 2025 income tax tables, state tax deductions, and state-specific income tax calculators.
• To find a financial advisor who serves your area, try our free online matching tool.
• Measure 5, which was passed in November 1990, restricted non-school taxes on any property to $10 per $1,000 of real market value.
• Oregon doesn’t follow the federal backup withholding rules for pension and annuities distributions.

3 – Oregon Dependent Deduction

• How much you’ll pay depends on your income, filing status, and the deductions or credits you qualify for.
• Remember that Oregon may have very different deduction laws from the Federal Income Tax, so you may have to write a whole new list of deductions for your Oregon income tax return.
• 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.
• State income tax return deadlines usually mirror the federal deadline in mid-April, but exceptions exist.
• It consists of four income tax brackets, with rates increasing from 4.75% to a top rate of 9.9%.
• If approved for the program, you will borrow money from the State of Oregon to pay your county property taxes.

The deadline for filing W-2s and 1099-NEC is January 31 of the following year. Other forms—1099-MISC, 1099-R, 1099-G, 1099-K, and W-2G—are due March 31 of the following year. If you stop doing business during the year, the report is due within 30 days of your final payroll. Shawn is the founder of The Annuity Expert, an independent online insurance agency servicing consumers across the United States. Through this platform, he and his team contribution margin aim to eliminate the guesswork in retirement planning by helping individuals find the best insurance coverage at the most competitive rates. Long-term care insurance premiums are federally and sometimes state tax-deductible, depending on age and income.

The tax system both reflects the prevailing economic forces of its time and does oregon have state income tax helps shape economic outcomes. In recent decades, income inequality has climbed to historic levels. Not coincidentally, business taxation has declined and tax rates for the superrich have collapsed. In order to gain Oregon tax-exempt status, a corporation must qualify as a 501(c) and obtain a Nonprofit Tax-Exempt ID Number from the IRS.