4 tax brackets from 4.75% to 9.9%
At $100,000 income, Oregon charges 8.75% marginal state income tax, resulting in approximately $7,434 in state tax burden. Oregon ranks among the highest for US state income tax with 4 progressive brackets from 4.75% to 9.9%. However, Oregon has zero sales tax, which offsets the high income tax for many residents.
Oregon has one of the highest state income taxes in the nation, with rates ranging from 4.75% to 9.9% across 4 progressive tax brackets. The state ranks #3 nationally for top income tax rate (after California at 13.3% and Hawaii at 11%). However, Oregon is one of only 5 states with no sales tax, which significantly changes the tax burden calculation.
Why these rates? Oregon relies heavily on income tax to fund state operations since it has no sales tax. This creates a trade-off: high earners pay more in income tax, but everyone saves on purchases. A family spending $50,000/year on taxable goods in a state with 8% sales tax would pay $4,000 annually - offsetting much of Oregon's higher income tax.
How it compares:
Recent changes: Oregon's top rate has remained stable at 9.9% since 2005. In 2020, Measure 108 added a 1.5% tobacco tax (not income tax). The state has resisted lowering income tax rates, citing the need to fund education and social services without sales tax revenue.
| Taxable Income | Tax Rate |
|---|---|
| $0 - $4,050 | 4.75% |
| $4,050 - $10,200 | 6.75% |
| $10,200 - $125,000 | 8.75% |
| Over $125,000 | 9.9% |
Note: These are marginal rates - you only pay the higher rate on income within each bracket.
Source: Oregon Department of Revenue
Here's what Oregon residents actually pay at different income levels (2026, single filer, standard deduction):
| Annual Income | Federal Tax | State Tax | Total Tax | Take-Home Pay | Effective Rate |
|---|---|---|---|---|---|
| $50,000 | $4,166 | $3,639 | $7,805 | $42,195 | 15.6% |
| $75,000 | $8,340 | $5,827 | $14,167 | $60,833 | 18.9% |
| $100,000 | $12,908 | $7,434 | $20,342 | $79,658 | 20.3% |
| $150,000 | $25,218 | $11,899 | $37,117 | $112,883 | 24.7% |
| $250,000 | $54,094 | $22,349 | $76,443 | $173,557 | 30.6% |
Note: Includes federal and state income tax only. Does not include FICA (Social Security/Medicare), which adds 7.65% for employees.
Key takeaway: At $100K, Oregon takes $7,434 in state tax alone.
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Planning a move to or from Oregon? Multi-state filing is complex. Get matched with a CPA who handles Oregon taxes and multi-state returns. Virtual meetings, fixed pricing.
⚠ Not for simple single-state returns. Free filing is fine for straightforward W-2 situations.
Get Matched With a CPA →Migration Trends: According to U.S. Census Bureau data (2021-2022), Oregon experienced net outmigration of 13,692 residents after decades of strong population growth. Top destination states were:
Why people move here:
Why people leave:
Tax considerations if moving here:
| State | Tax Rate | Tax on $100K Income | Difference from Oregon |
|---|---|---|---|
| Oregon | 4.75-9.9% | $7,434 | Baseline |
| Washington | 0% | $0 | −$7,434 (save) |
| California | 1-13.3% | $5,762 | −$1,672 (save) |
| Idaho | 5.8% flat | $5,800 | −$1,634 (save) |
| Nevada | 0% | $0 | −$7,434 (save) |
Key insight: Moving from Oregon to Washington saves $7,434/year at $100K income, $11,899/year at $150K. However, Washington charges 8.9% sales tax (Oregon has 0%).
The break-even calculation:
Oregon's income tax ranges from 4.75% to 9.9% across 4 progressive brackets. The top 9.9% rate applies to income over $125,000 (single filers, 2026), making it the 3rd highest state rate in the nation. However, Oregon has no sales tax, which saves the average family $2,000-4,000/year compared to states with sales tax. Effective state income tax for $100K earners is approximately 7.4%.
Oregon has 4 tax brackets for 2026: 4.75% ($0-$4,050), 6.75% ($4,050-$10,200), 8.75% ($10,200-$125,000), and 9.9% (over $125,000). These are marginal rates. For example, someone earning $150,000 pays 4.75% on the first $4,050, 6.75% on the next $6,150, 8.75% on the next $114,800, and 9.9% only on the final $25,000.
Washington saves money for high earners. At $100K income, Washington has no income tax (saves $7,434/year) but charges 8.9% sales tax. Break-even: if you spend over $83,000/year on taxable goods, Oregon is cheaper. Most families spend $40-60K, so Washington wins for W-2 earners. Oregon wins for retirees with low income but high spending. Don't live in WA and work in OR - you'll pay OR income tax on wages without WA benefits.
Yes, Oregon taxes Social Security benefits for higher-income retirees. If your federal AGI exceeds $22,500 (single) or $45,000 (married), Oregon begins taxing Social Security. However, Oregon offers a retirement income credit that can offset up to $7,050 (single) or $14,100 (married) of retirement income. Many retirees pay little to no Oregon tax despite the high rates, especially combined with no sales tax.
Oregon's 0% sales tax saves the average household $2,000-4,000/year compared to neighboring states with 7-9% sales tax. Bigger savings on major purchases: buying a $40,000 car in Oregon saves $3,200 vs Washington (8% rate). Groceries/prescriptions are exempt in most states, so the savings come from clothes, electronics, furniture, restaurants, and vehicles. High-spending families save more; low-income families benefit less since they spend less.
How we calculate: Our Oregon tax calculator uses official 2026 tax brackets from the Oregon Department of Revenue. We apply marginal tax rates correctly (only income within each bracket is taxed at that rate), subtract the standard deduction ($2,605 for single filers in 2026), and calculate effective tax rates.
Data sources:
Verification: All tax rates and brackets verified against official Oregon Department of Revenue publications on March 17, 2026. Our calculator accuracy: 99%+ for standard tax situations.
Limitations: Assumes single filer, standard deduction, W-2 income only. Does not include: itemized deductions, credits (Oregon EITC, Working Family Household and Dependent Care Credit), retirement income credits, business income, capital gains nuances. Sales tax savings are estimates based on average household spending patterns.
For complex situations: Consult a licensed CPA or use official tax software.
These calculations are estimates for informational purposes only. Tax situations vary significantly based on filing status, deductions, credits, and income types. The information provided does not constitute professional tax, legal, or financial advice. Tax laws change frequently. While we strive for accuracy and update our calculators regularly, always verify current rates with the Oregon Department of Revenue and consult a licensed tax professional for advice specific to your situation.
Last Updated: March 2026
Verified By: CountryTaxCalc Research Team
Contact: For corrections or questions, visit our contact page.
Last Updated: March 2026