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Oregon Income Tax Guide 2026 | Rates, Brackets & Calculator

Daniel · CountryTaxCalc Updated June 2026
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KEY INSIGHT
At $100,000 gross income, an Oregon single filer pays approximately $8,017 in state income tax — an effective rate of 8.02%. Oregon's top rate of 9.9% on income above $125,000 is among the highest in the US. Oregon has no state sales tax, which provides partial offset. Portland-area residents also pay additional metro-level income taxes.
At a glance

Key Facts

Income Tax Brackets (2026)
4 brackets: 4.75% on $0-$4,050; 6.75% on $4,050-$10,200; 8.75% on $10,200-$125,000; 9.9% above $125,000 (single filer thresholds)
At $100,000 Income (Single)
$97,580 taxable (after $2,420 std deduction); tax ~$8,253 - $236 credit = $8,017 (8.02% effective rate)
Standard Deduction
$2,420 (single) / $4,840 (MFJ) — Oregon's own deduction, much lower than federal ($14,600)
Sales Tax
NONE — Oregon has no state or local sales tax (one of only 5 US states)
Portland Metro Taxes
1% Metro SHS tax above $125K + 1.5%-3% Multnomah County PFA tax — applies to Portland-area residents only
Estate Tax
10%-16% on estates above $1 million — very low threshold; many property owners potentially affected
Introduction

Oregon has one of the highest state income tax rates in the US at 9.9% on income above $125,000 for single filers. Unlike California, Oregon applies its second-highest bracket (8.75%) starting at just $10,200 — meaning most middle-income earners face high effective rates. Oregon's standard deduction is very low ($2,420 for single filers), significantly increasing taxable income.

Oregon's distinctive advantage is the complete absence of a state sales tax — one of only five US states with no general sales tax. Portland-area residents pay additional metro and county income taxes on top of the state rate.

Section 01

Oregon Income Tax Brackets 2026

Oregon uses a four-bracket progressive system. For single filers: 4.75% on the first $4,050; 6.75% from $4,050–$10,200; 8.75% from $10,200–$125,000; and 9.9% on income above $125,000. For married filing jointly, the same rates apply with doubled brackets up to $250,000, then 9.9% above. Oregon's 9.9% top rate makes it among the most expensive income tax states in the US — comparable to California (13.3%) and New Jersey (10.75%). The key difference from California: Oregon applies 9.9% starting at $125,000 vs California applying its highest rates only above $1M+.
Section 02

Oregon Standard Deduction — Much Lower Than Federal

Oregon's standard deduction is $2,420 for single filers and $4,840 for married filing jointly — dramatically lower than the 2026 federal standard deduction of $14,600 (single). This means Oregon residents generally cannot subtract much of their income before Oregon tax applies, leading to a higher effective Oregon tax burden than the bracket rates alone suggest. Oregon also provides a personal exemption credit of $236 per person — this is a credit (reducing tax owed directly) rather than a deduction (reducing taxable income), which is more valuable for lower-income filers.
Section 03

Portland Metro Taxes — SHS and Multnomah PFA

Portland-area residents face additional income taxes beyond Oregon state tax. The Portland Metro Supportive Housing Services (SHS) tax is 1% on income above $125,000 for single filers living in the tri-county metro area (Clackamas, Multnomah, Washington counties). Multnomah County (which includes Portland city proper) additionally imposes the Preschool for All (PFA) tax: 1.5% on income from $125,000–$250,000 and 3% on income above $250,000 for single filers. Combined, a high-income Portland resident in Multnomah County could face Oregon income taxes approaching 12.9% on their highest dollars of income.
Section 04

No Oregon Sales Tax

Oregon is one of only five states in the US with no general state sales tax (the others are Montana, New Hampshire, Delaware, and Alaska). This is a significant financial benefit for Oregon residents, particularly for large purchases. On $40,000 in annual consumer spending, a typical Oregon resident avoids approximately $3,200–$4,000 in sales taxes compared to the national average. For context, a California resident pays ~7.25% base sales tax (higher with local additions), meaning Oregon's no-sales-tax policy partially offsets its high income tax rates.
Section 05

Oregon vs Washington State — Border Tax Comparison

Oregon and Washington share a long border and a significant cross-state commuter population. The contrast is striking: Oregon has a 9.9% top income tax rate and no sales tax; Washington has no income tax and a ~9–10% combined sales tax. High-income earners (above ~$250,000) often pay less total tax in Washington. Lower-to-middle income earners who spend most of their income on taxable goods may pay similar total taxes in both states. Oregon residents frequently shop in Washington (Vancouver, WA) to avoid sales tax on large purchases.
Section 06

Oregon Retirement Income Taxes

Oregon taxes most retirement income, including 401(k) and IRA withdrawals, pension income, and Social Security. Oregon does offer a federal pension exclusion for military and certain federal retirees (up to $6,250 exclusion). Oregon's full taxation of retirement income makes it less attractive for retirees than states like Florida, Tennessee, or Nevada that have no income tax. However, Oregon's no-sales-tax policy and high quality of life remain draws for retirees despite the income tax burden.
Section 07

Oregon Property Tax and Measure 5

Oregon's effective property tax rate averages approximately 0.93% — moderate compared to the national average. Oregon property taxes are constrained by two constitutional amendments: Measure 5 (1990) caps property taxes at $10 per $1,000 of assessed value ($5 for education); and Measure 50 (1997) caps assessed value growth at 3% per year. These measures mean long-term Oregon homeowners often pay property tax on assessed values well below current market value — a significant hidden benefit for those who have owned property for many years.
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FAQ

Frequently Asked Questions

What is Oregon's income tax rate for 2026?

Oregon has four income tax brackets for 2026: 4.75% on income up to $4,050, 6.75% from $4,050–$10,200, 8.75% from $10,200–$125,000, and 9.9% above $125,000 (single filer thresholds). At $100,000 income, the effective rate is approximately 8.02% — high relative to other states because the 8.75% bracket kicks in early and Oregon's standard deduction is very low ($2,420).

Does Oregon have a sales tax?

No — Oregon has no state or local sales tax, making it one of only five US states without a general sales tax. This is a meaningful financial benefit for Oregon residents. On $40,000 in annual spending, the absence of sales tax could save $2,500–$4,000 compared to most other states. However, this benefit is partially offset by Oregon's high income tax rates.

What is the Portland Metro tax?

Portland-area residents pay additional income taxes on top of Oregon state tax. The Metro Supportive Housing Services (SHS) tax is 1% on income above $125,000 (single) for residents in Clackamas, Multnomah, or Washington counties. Multnomah County additionally levies the Preschool for All (PFA) tax: 1.5% on $125,000–$250,000 and 3% above $250,000. A Multnomah County resident with $300,000 income could pay approximately $3,375 in combined metro/county taxes on top of Oregon state tax.

How does Oregon compare to Washington state for taxes?

Oregon and Washington have opposing tax structures. Oregon has high income tax (up to 9.9%) with no sales tax. Washington has no income tax but ~9–10% combined sales tax. High-income earners typically pay less in Washington. Lower-income earners who spend most of their income on consumer goods may pay similar total taxes in either state. Oregon residents living near Portland frequently shop in Vancouver, Washington to avoid sales tax on large purchases.

Does Oregon tax Social Security benefits?

Yes — Oregon taxes Social Security benefits as ordinary income using the same bracket structure. Oregon does not exempt Social Security from state tax. This contrasts with states like Illinois, Pennsylvania, and Mississippi that fully exempt Social Security. For Oregon retirees relying heavily on Social Security, this means a higher state tax burden compared to many other retirement destinations.

What is Oregon's standard deduction for 2026?

Oregon's standard deduction is $2,420 for single filers and $4,840 for married filing jointly — much lower than the federal standard deduction ($14,600 single). Because Oregon's deduction is so low, most of a resident's income is subject to Oregon tax. This is why Oregon's effective rates are high even though the lowest bracket is only 4.75%.

Are capital gains taxed differently in Oregon?

No — Oregon taxes capital gains as ordinary income using the same four brackets (up to 9.9%). There is no special rate for long-term capital gains. However, Oregon does allow a 40% deduction for capital gains from stock in small Oregon businesses held more than 5 years (the 'qualified capital gains' deduction). For most investors with standard stock market capital gains, no special Oregon rate applies.

Is Oregon a good state to retire in for taxes?

Oregon is generally not tax-friendly for retirees. Most retirement income (401k, IRA, Social Security) is fully taxable at regular Oregon rates (up to 9.9%). However, Oregon's no-sales-tax policy, moderate property taxes (~0.93%), and high quality of life attract many retirees despite the income tax burden. Retirees seeking to minimize taxes typically choose Florida, Nevada, Tennessee, or Washington instead.

Does Oregon have an estate tax?

Yes — Oregon levies an estate tax on estates above $1 million, with rates ranging from 10% to 16%. Oregon's $1 million exemption is extremely low compared to the federal exemption (~$13.61M) and even compared to other states with estate taxes (Washington: $3M, Minnesota: $3M). This means many moderate estates in Oregon — including those with appreciated real estate — owe Oregon estate tax. Careful estate planning is essential for Oregon property owners.
Disclaimer:This guide is for educational purposes only and does not constitute tax or financial advice. Oregon income tax brackets are adjusted annually for inflation. Portland Metro SHS and Multnomah County PFA taxes apply only to residents within those jurisdictions. Rates shown reflect 2026 estimates based on official Oregon Department of Revenue data. Consult a qualified tax professional for advice specific to your situation.
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