Oregon Paycheck Calculator

Frequently Asked Questions

What is the income tax rate in Oregon?

The state income tax rate in Oregon is progressive and ranges from 4.75% to 9.9% while federal income tax rates range from 10% to 37% depending on your income. This paycheck calculator can help estimate your take home pay and your average income tax rate.

How many income tax brackets are there in Oregon?

The state income tax system in Oregon has four different tax brackets. For more details, check out our detail section.

How Your Oregon Paycheck Works

Located in the Pacific Northwest, Oregon is a state of contrasts. It has mountains and beaches, forests and deserts, cities and farms. Additionally, it also has a multi faceted tax system that affects how much money you take home. Let's explore how your paycheck works in the Beaver State.

One of the biggest items taken from your paycheck is federal income tax. This is a tax that applies to all US workers regardless of where they live or work. The amount of federal income tax you owe depends on your filing status, income level, etc. You can adjust your federal income tax withholding by filling out Form W-4 and giving it to your employer.

Another major withholding from your paycheck is state income tax. Oregon has a progressive state income tax system that ranges from 4.75% to 9.9%, depending on your taxable income and filing status. The top rate is one of the highest in the US. You can adjust your state income tax withholding by filling out Form OR-W-4 and giving it to your employer. As the name suggests, this is essentially the state equivalent of the W-4.

The higher income taxes allow the state to forgo things like sales tax, which helps to offset your expenses.

In addition to income taxes, there are other payroll taxes that are also taken from your paycheck. Most prominent are the FICA taxes. These include Social Security tax and Medicare tax, which are federal taxes that fund retirement and health care benefits for seniors and disabled people. The Social Security tax rate is 6.2% of your wages up to a certain limit ($147,000 for 2022), while the Medicare tax rate is 1.45% of all wages with no limit. Some high-income earners may also have to pay an additional Medicare surtax of 0.9% on wages above a max level.

Another payroll tax that applies to Oregon workers is the Workers Benefit Fund (WBF) assessment. This is a state-mandated fee that supports workers’ compensation programs for injured workers. The WBF assessment rate is just a couple cents per hour worked and split between yourself and your employer.

There's also a small state wide transit tax that goes towards the Statewide Transportation Improvement Fund which helps cover public transportation related investments and improvements.

State Income Tax Brackets

Those that are married filing jointly or filing as head of household see the same tax rate range, but have their tax bracket amounts doubled.

Both a state standard deduction and standard tax credits exist and vary depending on your filing status.

Oregon is one of the few states that allow a portion of your federal income tax to be deducted as well. The amount that can be deducted varies based on your income and phases out entirely for high income earners. In other words, those with incomes over a certain limit are not eligible for this deduction.

Oregon Local Income Tax

Within Oregon, there are also places that impose local income tax. In other words, there are quite a few levels to taxation in Oregon.

If you live or work in the greater Portland metro area, you also have to pay a local tax to help fund the Tri-County Metropolitan transportation system (TriMeT). If you live or work outside of this area, you don’t have to pay this tax.

There's also a similar tax for those in the Lane County Mass Transit District (LTD) as well.

Those living or working in Metro may be charged a payroll tax called the Metro Supportive Housing Services (SHS) Personal Income Tax. It's a small rate on high income earners. So only income over certain limits will see this tax which helps to raise money for supportive housing services for people experiencing homelessness or are at risk of experiencing homelessness. When you receive your W-2 at the end of the year, it will indicate that this tax has been withheld in the local tax section under the name "METRO".

Anyone that lives, works, or receives an income from Multnomah County may see another withholding called the Multnomah County Preschool for All (PFA) Personal Income Tax. This funds a tuition-free preschool program for those in the county and is also only aimed at high income earners. Your W-2 will indicate that this tax has been withheld in the local tax section under the name "MULT".

Other Mentions

Besides taxes, there may be other withholdings that might affect your Oregon paycheck. For example, if you participate in a retirement plan such as a 401(k) or an IRA, or if you contribute to a health savings account (HSA) or a flexible spending account (FSA), those contributions will reduce your taxable income and lower your tax liability. However, they will also reduce your net pay or take-home pay.

One unique feature of the income tax situation in Oregon is that there's a special credit called the Oregon surplus credit, which is also known as the “kicker" refund. It's a way for the state government to return some of your taxes to you when revenues are more than predicted by over 2%.

Every two years, the Oregon Department of Administrative Services (DAS) determines whether or not there is a surplus and the amount to be returned to taxpayers as a kicker. If there's a surplus, the kicker may be claimed on your tax return as a refundable tax credit or donated to the State School Fund.

Note that the kicker credit is only available on a tax return for an odd-numbered year. If there's no surplus, or if the tax year is even-numbered, unfortunately, no kicker will be available.

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For sales tax, please visit our Oregon Sales Tax Rates and Calculator page.