Oregon Income Tax Calculator

How to Use This Oregon Income Tax Calculator

This Oregon income tax calculator estimates your annual state and federal tax liability for 2025 and 2026. Enter your gross income, filing status, and any pre-tax deductions, then select your locality in the dropdown if you live or work in the Portland Metro area or Multnomah County. Results show your Oregon state tax, local taxes, federal tax, FICA, and estimated net annual income.

For a per-paycheck breakdown, use the Oregon paycheck calculator. To compare Oregon with other states, use the general income tax calculator.

How Oregon State Income Tax Works

Oregon uses a four-bracket progressive income tax that has remained largely stable in recent years. The top rate of 9.9% applies to income above $125,000 (single) or $250,000 (joint) — one of the highest top rates in the country.

Oregon starts with federal adjusted gross income (AGI) and then applies state-specific adjustments:

1. Start with federal AGI — wages, self-employment, interest, dividends, and other income.
2. Apply Oregon additions/subtractions — for example, federal tax paid was historically deductible (eliminated in 2012); certain military pay is excluded.
3. Subtract the Oregon standard deduction— $2,745 (single) / $5,495 (joint). Oregon's standard deduction is much smaller than the federal amount.
4. Apply the progressive brackets — 4.75% through 9.9% depending on Oregon taxable income.
5. Subtract the personal exemption credit — $236 per filer directly reduces the tax owed (not taxable income).

Portland Metro and Multnomah County Local Taxes

If you live or work in the Portland metropolitan area, two local income taxes may apply:

Portland Metro Supportive Housing Services (SHS) Tax

Enacted in 2021, the SHS tax funds homelessness services. The rate is 1% on Oregon AGI above $125,000 for single filers (or above $200,000 for joint filers). The tax uses Oregon AGI as its base — meaning it is calculated before the standard deduction, so more income is exposed than the state brackets suggest. Employers began mandatory withholding in 2023.

Multnomah County Preschool for All (PFA) Tax

The Multnomah County PFA tax has two rates on Oregon AGI: 1.5% on income above $125,000 (single) / $200,000 (joint), and 3% on income above $250,000 (single) / $400,000 (joint). The combined maximum rate for a high-earning Multnomah County resident subject to both taxes is 4.5% in local income tax on income above $250,000 (single), layered on top of the 9.9% Oregon state rate.

FICA Taxes — Social Security and Medicare

FICA is federal and applies to every Oregon income earner:

• Social Security: 6.2% on wages up to $176,100 (2025) or $184,500 (2026). No further withholding once you hit the wage base.
• Medicare: 1.45% on all wages with no cap.
• Additional Medicare: 0.9% on wages above $200,000 (single) or $250,000 (married jointly) — employee only, no employer match.

Step-by-Step Example — $130,000 Multnomah County Single Filer (2026)

1. Gross wages: $130,000
2. Federal standard deduction: −$16,100 → federal taxable income: $113,900. Federal income tax: ~$19,850.
3. FICA: 7.65% × $130,000 (capped) = $9,945.
4. Oregon taxable income: $130,000 − $2,745 = $127,255. Oregon tax: 4.75% × $4,550 + 6.75% × $6,850 + 8.75% × $113,600 + 9.9% × $2,255 = ~$10,664.
5. Portland Metro SHS tax: 1% × ($130,000 − $125,000) = $50.
6. Multnomah County PFA tax: 1.5% × ($130,000 − $125,000) = $75.
7. Total taxes: $19,850 + $9,945 + $10,664 + $50 + $75 = $40,584
8. Annual net income: $130,000 − $40,584 = $89,416

How to Reduce Your Oregon Annual Tax Liability

• Maximize traditional 401(k) contributions— the 2026 limit is $23,500 ($31,000 if 50+). At Oregon's 8.75% bracket + 22% federal, every $1,000 contributed saves about $309.50 in combined state+federal income tax.
• Traditional IRA contributions — up to $7,000 ($8,000 age 50+) if eligible. For earners near the $125,000 SHS/Multnomah threshold, IRA contributions can reduce Oregon AGI below the local tax trigger, saving the full local tax on that income.
• Health Savings Account (HSA) — $4,300 individual / $8,550 family in 2026. Reduces Oregon taxable income and avoids FICA when contributed through payroll.
• Oregon College Savings Plan (529) — contributions are deductible from Oregon taxable income up to $150 (single) / $300 (joint) per year — a small but real state tax benefit.
• Review your withholding annually — the Portland Metro and Multnomah County taxes require separate estimated payments or employer withholding. Failure to withhold or pay estimated taxes results in underpayment penalties. Use the Oregon paycheck calculator to verify your per-check withholding matches your annual liability.

Tax Disclaimer

This calculator provides estimates for informational purposes only. It is not tax advice. Oregon state brackets, Portland Metro SHS thresholds, Multnomah County PFA rates, and federal rules change annually. Consult a qualified Oregon-licensed CPA or tax professional for your specific situation.