Oregon paycheck taxes at a glance
| State income tax | 4.75% to 9.9% (4 brackets) |
|---|---|
| Standard deduction | $2,910 single, $5,820 joint, $4,650 head of household |
| Personal credit (off the tax) | $263 single, $526 joint |
| Per dependent | $263 credit |
| Pre-tax deductions | 401(k), HSA and health premiums lower state tax too |
| Local income tax | Yes: 2 options in the calculator |
| State payroll deductions | OR transit 0.1%; OR Paid Leave 0.6% to $184,500 |
| Reciprocity | None |
| Figures | Tax year 2026 (see note) |
Every paycheck also has federal income tax, Social Security (6.2% up to $184,500) and Medicare (1.45%), worked out with the same 2026 IRS figures as ourmain paycheck calculator.
Oregon income tax brackets
| Taxable income | Rate |
|---|---|
| $0 to $4,550 | 4.75% |
| $4,550 to $11,400 | 6.75% |
| $11,400 to $125,000 | 8.75% |
| Over $125,000 | 9.9% |
| Taxable income | Rate |
|---|---|
| $0 to $9,100 | 4.75% |
| $9,100 to $22,800 | 6.75% |
| $22,800 to $250,000 | 8.75% |
| Over $250,000 | 9.9% |
| Taxable income | Rate |
|---|---|
| $0 to $9,100 | 4.75% |
| $9,100 to $22,800 | 6.75% |
| $22,800 to $250,000 | 8.75% |
| Over $250,000 | 9.9% |
Oregon also has rules the brackets alone do not show (see the notes below); the calculator applies them.
Worked examples
A $65,000 salary in Salem, single, paid every two weeks
| Per paycheck | Per year | |
|---|---|---|
| Gross pay | $2,500.00 | $65,000 |
| Federal income tax | − $216.15 | − $5,620 |
| Social Security and Medicare | − $191.25 | − $4,973 |
| Oregon income tax | − $167.66 | − $4,359 |
| OR transit | − $2.50 | − $65 |
| OR Paid Leave | − $15.00 | − $390 |
| Take-home pay | $1,907.44 | $49,593 |
Single, paid every two weeks (26 paychecks). Oregon taxable income is $56,470 and the state tax is $4,359, an effective 6.706% of gross pay. Most of this income is taxed at 8.75%, but the federal tax subtraction and the $263 exemption credit pull the effective state rate well below that.
A $240,000 household in Portland, married filing jointly with two children
| Per paycheck | Per year | |
|---|---|---|
| Gross pay | $9,230.77 | $240,000 |
| 401(k) at 6% | − $553.85 | − $14,400 |
| Federal income tax | − $1,060.46 | − $27,572 |
| Social Security and Medicare | − $587.65 | − $15,279 |
| Oregon income tax | − $685.66 | − $17,827 |
| Local: Multnomah County inside Metro (Portland, Gresham) | − $8.68 | − $226 |
| OR transit | − $9.23 | − $240 |
| OR Paid Leave | − $42.58 | − $1,107 |
| Take-home pay | $6,282.66 | $163,349 |
Married filing jointly, 2 children, paid every two weeks (26 paychecks). Oregon taxable income is $211,030 and the state tax is $17,827, an effective 7.428% of gross pay. Income above $200,000 rules out the exemption credit, and only the slice of taxable income over the Metro and county thresholds pays the two local taxes. The 401(k) deferral shrinks both.
The federal tax subtraction and its phase-out
Oregon lets you subtract the federal income tax you owe from your income, up to $8,750 in 2026 (half that if married filing separately). The limit falls by a fifth for each $5,000 of federal AGI from $125,000, reaching zero at $145,000 for single filers. For joint filers and heads of household it falls for each $10,000 from $250,000 and is gone at $290,000. The calculator uses your federal tax after the child tax credit and treats your wages after pre-tax deductions as your AGI.
The exemption credit stops at $100,000
Each person on the return, including each dependent, gets a $263 exemption credit taken straight off the tax. It is not phased out gradually: once federal AGI is above $100,000 (single or married filing separately) or $200,000 (joint or head of household), the whole credit disappears. That is why a small raise across the line can cost a few hundred dollars. Extra standard deductions for people 65 or older or blind are not included here.
Portland Metro and Multnomah County taxes
Residents of the Metro area pay the Supportive Housing Services tax: 1% of taxable income above $128,000 (single) or $205,000 (joint or head of household) in 2026; these thresholds now rise with inflation. Multnomah County adds Preschool for All: 1.5% above $125,000 ($200,000 joint) and another 1.5% above $250,000 ($400,000 joint), with a rate rise due in 2028. Employers must withhold both only for employees earning over $200,000. Portland residents also owe the Arts Tax of $50 ($100 joint) when Oregon taxable income is above $20,000 ($40,000 joint), paid with the return.
Transit tax, Paid Leave Oregon and the WBF
The statewide transit tax takes 0.1% of every dollar of wages, with no cap. Paid Leave Oregon costs 1% of wages up to $184,500 in 2026: employees pay 60% (0.6%, at most $1,107) and employers with 25 or more workers pay 40%. Your stub may also show the Workers’ Benefit Fund assessment, 1.8 cents per hour worked in 2026, part of which employers may deduct; it is based on hours, so it is not included. TriMet and Lane transit taxes are paid by employers.
No reciprocity, and Washington commuters
Oregon has no reciprocal agreements. Washington residents who work in Oregon pay Oregon income tax and the transit tax on those wages, while days worked from home in Washington are not taxed by Oregon. Oregon residents pay Oregon tax on all their income, even when they work across the river in Washington, which has no income tax to credit. See the Washington paycheck calculator for the other side.
Oregon payroll deductions besides income tax
- Statewide Transit Tax: Employees pay 0.1% of all wages: Oregon residents wherever they work, and nonresidents for work done in Oregon.
- Paid Leave Oregon: Employees pay 60% of the 1% contribution, so 0.6% of wages up to $184,500 in 2026.
Oregon vs. neighboring states
Take-home pay on a $75,000 salary, single, no pre-tax deductions and no local tax:
| State | Income tax | State tax + programs | Take-home |
|---|---|---|---|
| Oregon | 4.75% to 9.9% (4 brackets) | $5,580 | $56,013 |
| Washington | None on wages | $1,040 | $60,552 |
| Idaho | 5.3% above $4,811 (single) | $2,925 | $58,667 |
| Nevada | None on wages | $0 | $61,593 |
| California | 1% to 13.3% (10 brackets) | $3,750 | $57,843 |
Where you work and where you live can both matter. See paycheck calculators for every state for the full comparison.