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Oregon Income Tax Guide 2026 | Rates, Brackets & Calculator

Daniel · CountryTaxCalc Updated October 2026
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KEY INSIGHT
At $100,000 gross income, an Oregon single filer pays approximately $7,148 in state income tax (after the federal tax subtraction and $263 exemption credit) — an effective rate of 7.15%. 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-$4,550; 6.75% on $4,550-$11,400; 8.75% on $11,400-$125,000; 9.9% above $125,000 (single filer thresholds)
At $100,000 Income (Single)
$88,340 taxable (after the $8,750 capped federal tax subtraction and $2,910 std deduction); tax ~$7,411 - $263 credit = ~$7,148 (7.15% effective rate)
Standard Deduction
$2,910 (single) / $5,820 (MFJ) for 2026 (inflation-adjusted annually) — dramatically lower than federal ($16,100)
Sales Tax
NONE — Oregon has no state or local sales tax (one of only 5 US states)
Portland Metro Taxes
1% Metro SHS tax on taxable income above $128K (single, 2026) + Multnomah County PFA tax of 1.5% above $125K and 3% above $250K (single)
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 $11,400 — meaning most middle-income earners face high effective rates. Oregon's standard deduction, just $2,910 for single filers in 2026, is dramatically lower than the federal standard deduction, keeping taxable income relatively high.

Oregon's distinctive advantage is the complete absence of a state sales tax — one of only five US states with no statewide 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 $4,550; 6.75% from $4,550–$11,400; 8.75% from $11,400–$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 $2,910 for single filers and $5,820 for married filing jointly for 2026 (inflation-adjusted annually — up from $2,835 single in 2025) — dramatically lower than the 2026 federal standard deduction of $16,100 (single). This means Oregon residents can subtract far less of their income before Oregon tax applies than they would federally, leading to a much higher effective Oregon tax burden than the bracket rates alone suggest. Oregon also provides a personal exemption credit of $263 per person (2026 DOR-published estimate; not allowed to single filers with federal AGI over $100,000) — 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 Metro taxable income above $128,000 (2026, inflation-indexed) for single filers who live in the Metro district (parts of Clackamas, Multnomah and Washington counties); it also reaches nonresidents with Metro-source income. 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 13.9% on their highest dollars of income.
Section 04

No Oregon Sales Tax

Oregon is one of only five states in the US with no statewide 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, each percentage point of sales tax is $400, so a resident of a state with a combined rate of 6%–7% would pay roughly $2,400–$2,800 on that spending. 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 does not tax wage income in 2026 and has 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 and pension income, but it does not tax Social Security benefits (they are fully subtracted). Oregon also offers a subtraction for certain federal pension income and a retirement income credit for qualifying retirees aged 62 or older with household income (not counting Social Security) below $22,500 (single) or $45,000 (joint). Oregon's taxation of most other 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 0.81% — moderate compared to the national average. Oregon property taxes are constrained by two constitutional amendments: Measure 5 (1990) caps operating property taxes at $10 per $1,000 of real market value for general government ($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 $4,550, 6.75% from $4,550–$11,400, 8.75% from $11,400–$125,000, and 9.9% above $125,000 (single filer thresholds). At $100,000 income, the effective rate is approximately 7.15% after the federal tax subtraction and the $263 exemption credit — high relative to other states because the 8.75% bracket kicks in early and Oregon's standard deduction ($2,910) is quite low.

Does Oregon have a sales tax?

No — Oregon has no state or local general sales tax, making it one of only five US states without a statewide sales tax. This is a meaningful financial benefit for Oregon residents. On $40,000 in annual spending, each percentage point of sales tax is $400, so a 6%–7% combined rate elsewhere would cost roughly $2,400–$2,800. 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 taxable income above $128,000 (single, 2026) for residents of the Metro district (parts of Clackamas, Multnomah and 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 $4,979 in combined Metro SHS and county PFA 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 does not tax wage income in 2026 but has ~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?

No — Oregon does not tax Social Security benefits; they are fully subtracted from Oregon taxable income, the same outcome as in Illinois, Pennsylvania, and Mississippi. Oregon does tax most other retirement income (401(k) and IRA withdrawals, pensions) at regular rates, so retirees who rely on those still face a state tax burden.

What is Oregon's standard deduction for 2026?

Oregon's standard deduction is $2,910 for single filers and $5,820 for married filing jointly for 2026 (inflation-adjusted annually) — dramatically lower than the federal standard deduction ($16,100 single). Because Oregon's deduction remains 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. 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, pensions) is taxable at regular Oregon rates (up to 9.9%), although Social Security benefits are not taxed. However, Oregon's no-sales-tax policy, moderate property taxes (~0.81%), 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 ($15M) 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 applies to residents of the Metro district and to nonresidents with Metro-source income; Multnomah County PFA applies to county residents and to county-source income. 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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