Oregon Tax Tables 2025 Tax Rates and Thresholds in Oregon

Employers use the Sales Forecasting Oregon Quarterly Tax Report (OQ) to file state income tax withholdings, SUI contributions, and Workers’ Benefit Fund payments. Additionally, transit payroll taxes like TriMet or Lane Transit may require separate filings. ​In most cases, you must make estimated tax payments if you expect your tax after credits and withholding will be $1,000 or more, before you subtract any prior year refund you applied to your current year’s tax.

The 5 states with the highest income tax rates

• The Oregon Department of Revenue encourages electronic filing through its iWire system or approved tax preparation software.
• Regular audits of your payroll system can help catch discrepancies early and maintain compliance.
• Oregon paycheck calculator estimates the taxes deducted from your earnings as an employee, including Federal, Oregon State, Social Security and Medicare taxes.
• Smaller employers with fewer than 25 employees are exempt from the employer portion but must still deduct and remit the employee share.
• By staying informed and organized, you can ensure your business remains compliant and successful in Portland’s competitive market.
• New Jersey has the highest state property taxes, at 2.21% of the property’s value.

The global tax consultancy Ernst & Young recently evaluated changes in state and local taxation in Portland and across the state. They calculated total taxes paid by businesses located in the City of Portland increased by about one-third, or from $781 million to $1.031 billion, from 2019 to 2021. In order to gain Oregon tax-exempt status, a corporation must qualify as a oregon income tax rate 501(c) and obtain a Nonprofit Tax-Exempt ID Number from the IRS. Oregon may also require nonprofits to file additional paperwork with the Oregon Department of Revenue to gain exemption from Oregon’s corporate taxes. If you are making a payment for more than one personal tax program, please enclose a separate check or money order for each program.

• High inflation put pressure on the IRS to give healthy bumps to annual contribution limits for 2023.
• For comparison purposes, however, your Oregon tax bracket is the tax bracket in which your last earned dollar in any given tax period falls.
• An overpayment in tax throughout the year will result in a refund, while an underpayment may result in a bill.
• A portion of the BIT revenue is shared with the cities of Gresham, Wood Village, Troutdale, Fairview, and Maywood Park.
• All insurance companies required to file must do so on a calendar year basis and are subject to the minimum tax.
• 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.

Why do I send payment to the Portland Revenue Division?

The report details a dramatic rise in the business tax burden, both in real terms and in relation to other states. This places Oregon not only well above unearned revenue the national average for combined business tax burden, but also above neighboring states California, Idaho and Washington. The marginal tax rate is the tax rate paid on the last dollar of taxable income. For example, if you’re a single filer in 2025 with $35,000 of taxable income, portions of your income would be taxed at 10% and 12%. If your taxable income went up by $1, you would pay 12% on that extra dollar, too.

Oregon Tax Credits

Remote employees working in Oregon create additional payroll tax considerations. Employers must withhold Oregon state income tax and calculate applicable local taxes, such as transit payroll taxes, based on the employee’s work location. Oregon payroll taxes include mandatory withholdings and employer-paid contributions designed to fund state programs such as unemployment insurance, public transportation, and the workers’ benefit fund.

For employees with work across multiple locations, allocate wages proportionally and apply the correct tax rates. Calculating Oregon state payroll taxes for employers requires accuracy and organized steps. Each calculation depends on precise data, so double-checking every input ensures compliance and smooth payroll processing. Accurate payroll tracking is critical when employees work across multiple locations. For employees splitting time between districts, employers must apportion wages and apply the correct rates for each district. The SUI program is fully funded by employer payments, with no deductions taken from employee wages.

• For Oregon, S corporation income is generally taxable to the shareholders rather than the corporation.
• Integrated payroll systems help by automating calculations and syncing data with state-specific requirements.
• If your deductible expenses don’t exceed these amounts, the standard deduction is a straightforward way to simplify your filing while maximizing your deductions.
• For payroll tax withholding questions, contact email protected.
• The Oregon Business & Industry Research and Education Foundation commissioned Ernst & Young to analyze recent tax changes affecting state businesses.