Oregon has four income tax brackets for 2026: 4.75% on the first $4,550 of income (single filers), 6.75% up to $11,400, 8.75% up to $125,000, and 9.9% on income above $125,000. The standard deduction is $2,910 for single filers and $5,820 for married couples filing jointly. Oregon also lets you subtract federal income tax paid, capped at about $8,750 for 2026 (the same cap for single and joint filers) and phased out at higher incomes — a rare provision among US states.
At a glance
Key Facts
Number of Brackets
4 (progressive: 4.75%, 6.75%, 8.75%, 9.9%)
Top Rate & Threshold
9.9% on income above $125,000 single / $250,000 married filing jointly
Standard Deduction (2026)
$2,910 single / $5,820 married filing jointly (inflation-adjusted)
Federal Tax Subtraction
Up to about $8,750 (same cap single or joint) — Oregon lets you subtract federal tax paid from state taxable income, phasing out above $125,000 / $250,000 federal AGI
No Sales Tax
Oregon has no state or local sales tax — one of only a few US states without one
Social Security
Not taxed by Oregon — Social Security benefits are fully subtracted
Introduction
Understanding Oregon's 2026 Income Tax Brackets
Oregon uses a four-bracket progressive income tax system, with rates ranging from 4.75% to a top rate of 9.9%. Oregon indexes most of its bracket thresholds for inflation (the first-bracket ceiling for single filers rose from $4,400 in 2025 to $4,550 in 2026), but the brackets are narrow, so most Oregon taxpayers quickly move into the 6.75% and then 8.75% brackets, and most working Oregonians reach the 8.75% bracket at a fairly modest income. Only the top-bracket threshold ($125,000 single / $250,000 joint) is fixed. Depending on income, credits and the federal tax subtraction, the effective state income tax rate for a single wage earner runs from roughly 6% at $30,000 to about 9% at $250,000 (our calculator engine, 2026).
Oregon has two tax features that set it apart from virtually every other state. First, it allows residents to deduct a portion of the federal income taxes they paid when calculating Oregon taxable income — up to about $8,750 (2026 indexed figure) for single and joint filers alike. This federal tax subtraction can meaningfully reduce Oregon state tax owed. Second, Oregon has no sales tax at all, which offsets the income tax burden considerably for everyday spending. A household buying taxable goods in neighboring Washington or California pays state and local sales tax that Oregon residents do not.
This guide covers every Oregon income tax bracket for 2026, walks through worked examples, and explains the deductions and credits available to Oregon residents.
Section 01
Oregon's 2026 Tax Brackets: Exact Rates and Thresholds
Oregon's four income tax brackets apply to taxable income after deductions. Here are the complete brackets for 2026:
Bracket
Single Filer Income
Married Filing Jointly
Rate
1
$0 – $4,550
$0 – $9,100
4.75%
2
$4,551 – $11,400
$9,101 – $22,800
6.75%
3
$11,401 – $125,000
$22,801 – $250,000
8.75%
4
Above $125,000
Above $250,000
9.9%
Notice that bracket 1 covers only the first $4,550 for single filers. Anyone earning above this modest amount quickly moves into the 6.75% bracket, then into 8.75% for most of their income above $11,400 single / $22,800 MFJ, and only reaches the top 9.9% bracket above $125,000 single / $250,000 MFJ.
Worked Example: $75,000 Salary (Single Filer)
Let's calculate the Oregon income tax for a single filer earning $75,000 gross:
Start with gross income: $75,000
Subtract standard deduction: $75,000 − $2,910 = $72,090 Oregon taxable income
Apply brackets:
4.75% on first $4,550 = $216.13
6.75% on next $6,850 ($4,551–$11,400) = $462.38
8.75% on remaining $60,690 ($11,401–$72,090) = $5,310.38
Total Oregon state income tax: $216.13 + $462.38 + $5,310.38 = approximately $5,989
Effective rate: approximately 7.99% of gross income
Note: if this taxpayer paid significant federal income tax (say $10,000 in federal taxes), they may also be eligible for Oregon's federal tax subtraction, which could reduce their Oregon taxable income further — see the deductions section below.
Worked Example: $200,000 Salary (Single Filer)
Gross income: $200,000
Subtract standard deduction: $200,000 − $2,910 = $197,090 Oregon taxable income
Apply brackets:
4.75% on first $4,550 = $216.13
6.75% on next $6,850 ($4,551–$11,400) = $462.38
8.75% on next $113,600 ($11,401–$125,000) = $9,940.00
9.9% on remaining $72,090 ($125,001–$197,090) = $7,136.91
Total Oregon state income tax: $216.13 + $462.38 + $9,940.00 + $7,136.91 = approximately $17,755
Effective rate: approximately 8.88% of gross income
Oregon indexes most bracket thresholds for inflation (the $4,550 ceiling on the 4.75% bracket was $4,400 in 2025), but the $125,000 threshold for the top 9.9% bracket is fixed, so more income drifts into the top bracket as wages rise. These worked examples show tax before credits and before the federal tax subtraction. For the $75,000 example, the $263 personal exemption credit (not allowed if federal AGI exceeds $100,000 for single filers) and any federal tax subtraction lower the final bill; at $200,000 neither applies, because the credit is gone and the subtraction phases out completely at $145,000 of federal AGI.
Section 02
Oregon Deductions and Credits Available in 2026
Standard Deduction
Oregon's standard deduction for 2026 is $2,910 for single filers and $5,820 for married filing jointly. These amounts are inflation-adjusted each year. The standard deduction is modest compared to the federal standard deduction ($16,100 federal single / $32,200 federal MFJ in 2026), so Oregon's deduction provides limited tax relief on its own.
The Federal Tax Subtraction — Oregon's Unique Deduction
One of Oregon's most distinctive tax provisions is the federal tax subtraction: Oregon residents can deduct a portion of the federal income taxes they actually paid during the tax year from their Oregon taxable income. For 2026, the limits are:
Single filers: up to about $8,750 (2026 indexed figure; $8,500 for 2025)
Married filing jointly: the same cap — about $8,750, not doubled
This is significant because it provides automatic relief for Oregonians with substantial federal tax burdens. A single filer who paid $12,000 in federal income tax can subtract about $8,750 from their Oregon taxable income, saving approximately $766 in Oregon state tax (at the 8.75% marginal rate). The subtraction is limited to the federal tax actually paid and phases out between $125,000 and $145,000 of federal AGI for single filers ($250,000 to $290,000 joint).
Social Security Income
Oregon does not tax Social Security benefits — they are fully subtracted from Oregon taxable income, providing meaningful relief for retirees. Oregon's treatment of Social Security is more favorable than many high-income states.
Earned Income Credit
Oregon offers an Earned Income Credit (EIC) equal to a percentage of the federal Earned Income Tax Credit: 12% if your youngest dependent is under age 3 at the end of the tax year, otherwise 9% (2025 return rules; confirm the 2026 percentage with the Oregon Department of Revenue). This helps lower-income working Oregonians reduce their state tax burden in line with federal credits they already receive.
Political Contribution Credit
Oregon allows a nonrefundable credit of up to $50 (single) or $100 (joint) for political contributions, but not if federal AGI exceeds $75,000 (single) or $150,000 (joint). This is a unique state-level credit not available in most other states.
Oregon vs Washington: Why the Comparison Matters
Oregon's southern neighbor California has a top income tax rate of 13.3% — higher than Oregon's 9.9% — while northern neighbor Washington has no income tax at all. For high earners, the Oregon–Washington comparison is one of the most financially meaningful state border decisions in the country. A single filer earning $200,000 who lives in Washington rather than Oregon avoids roughly $17,800 per year in state income tax. However, Washington's sales tax (approximately 8.6–10.4% in most areas) partially offsets this for residents who spend heavily on taxable goods. For someone spending $50,000 per year on taxable purchases in Washington, the sales tax bill would be around $4,300–5,200 annually — meaningful, but far less than Oregon's income tax differential at high income levels.
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Oregon has four income tax brackets for 2026. Single filers pay 4.75% on income up to $4,550, 6.75% on income from $4,551 to $11,400, 8.75% on income from $11,401 to $125,000, and 9.9% on income above $125,000. Married couples filing jointly pay the same rates but with doubled thresholds at $9,100, $22,800, and $250,000. Oregon indexes most of these thresholds for inflation each year (the single-filer first ceiling rose from $4,400 in 2025 to $4,550 in 2026), but the $125,000 / $250,000 top-bracket threshold is fixed.
Q
What is Oregon's top income tax rate?
Oregon's top income tax rate is 9.9%. This rate applies to income above $125,000 for single filers and above $250,000 for married couples filing jointly. Oregon's 9.9% top rate is among the highest state income tax rates in the United States, though it is lower than California's 13.3% top rate. For most Oregon earners, the practical marginal rate is 6.75% or 8.75%, as the 9.9% bracket only applies above $125,000 single.
Q
Does Oregon have a standard deduction?
Yes. Oregon's standard deduction for 2026 is $2,910 for single filers and $5,820 for married filing jointly. These are inflation-adjusted each year. The standard deduction is subtracted from your gross income to arrive at Oregon taxable income before applying the bracket rates. Oregon's standard deduction is much smaller than the federal standard deduction ($16,100 federal single for 2026), so itemizing deductions on your Oregon return can sometimes provide greater benefit if you have significant qualifying expenses.
Q
Can I deduct federal taxes on my Oregon return?
Yes — this is one of Oregon's most distinctive tax provisions. Oregon allows you to subtract the federal income taxes you actually paid from your Oregon taxable income, up to a limit of about $8,750 in 2026 ($8,500 for 2025) — the same cap for single and joint filers. This federal tax subtraction is claimed on your Oregon return and reduces your Oregon taxable income. For example, a single filer who paid $12,000 in federal income tax can subtract about $8,750 from their Oregon taxable income, saving approximately $766 in Oregon state tax at the 8.75% marginal rate. The subtraction is limited to the federal tax actually paid and phases out between $125,000 and $145,000 of federal AGI (single) or $250,000 and $290,000 (joint).
Q
Does Oregon tax Social Security?
Oregon does not tax Social Security benefits — they are fully subtracted from Oregon taxable income — making the state relatively favorable for retirees compared to states that tax Social Security. Additionally, Oregon residents age 62 or older with limited household income (below $22,500 single or $45,000 joint) may qualify for the retirement income credit on qualifying pension and annuity income; the credit is a reduction of tax, not a deduction, and it phases out as income rises.
Q
What is Oregon's state income tax rate?
Oregon's state income tax rate ranges from 4.75% to 9.9% across four progressive brackets. Most working Oregonians quickly move into the 8.75% bracket, since it starts at just $11,401 in taxable income for single filers. The 9.9% top rate applies only above $125,000 (single) or $250,000 (married filing jointly).
Q
How does Oregon compare to Washington State for taxes?
The Oregon vs Washington tax comparison is one of the most consequential state tax decisions for Pacific Northwest residents. Oregon has a progressive income tax up to 9.9% but no sales tax. Washington has no tax on wage income (a 9.9% tax on income above $1 million is enacted for 2028) apart from a 7% capital gains excise tax on long-term gains above a standard deduction (9.9% above $1 million), but levies a sales tax of approximately 8.6–10.4% in most areas. High earners generally pay significantly less tax in Washington — a $200,000 single earner saves roughly $17,800 per year in state income tax by living in Washington rather than Oregon. Lower-income residents may find Oregon's no-sales-tax benefit more meaningful relative to their spending patterns. Washington also has a higher estate tax threshold ($3 million) than Oregon's $1 million estate tax threshold.
Disclaimer:This guide provides general tax information for educational purposes only. Oregon tax rates, bracket thresholds, standard deduction amounts, and the federal tax subtraction limit are subject to change by the Oregon Legislature and the Oregon Department of Revenue. Always verify current figures at oregon.gov/dor and consult a qualified tax professional before making financial or tax decisions.