Key Tax Facts: Oregon
- No statewide sales tax - one of only five states without one
- Top rate of 9.9% on income above $125,000 (single) / $250,000 (joint)
- Oregon does not conform to all federal deductions
- Statewide Transit Tax (0.1%) withheld on wages
Estimate Your 2025 Federal and Oregon State Income Tax
Oregon State Income Tax Overview
Oregon has a graduated state income tax with four brackets ranging from 4.75% to 9.9% for 2024. Single filers pay 4.75% on income up to $18,400 and reach the top 9.9% rate on income above $250,000. Portland and surrounding Multnomah County impose additional local income taxes, including a Metro Supportive Housing Services Tax and a Preschool for All Tax on income above certain thresholds. Oregon does not have a state sales tax. The state provides a standard deduction of $2,835 for single filers and $5,670 for married couples for tax year 2025. Oregon fully taxes Social Security income but allows a credit for lower-income seniors.
What Is Different About Oregon's Income Tax
Deductions and exemptions
Oregon's standard deduction is $2,800 for single filers and $5,600 for joint filers for 2025, well below the federal figure, and itemizers use federal amounts with state tax removed. Personal exemption credits of $249 per person replace exemption deductions and phase out at higher incomes. Oregon allows a deduction for federal income tax paid, capped around $8,250 and phased out with income. Oregon has no sales tax.
Credits worth knowing
Oregon's earned income credit is 9% of the federal credit, or 12% for families with a child under three. The Oregon Kids Credit pays $1,000 per child under six for low-income families, and there is a working family household and dependent care credit, a political contribution credit, and a credit for taxes paid to other states. Portland-area residents also owe Multnomah County and Metro income taxes above income thresholds.
Retirement, capital gains, and other income
Social Security is exempt, and Oregon offers a retirement income credit for lower-income taxpayers 62 and older. Federal pensions earned before October 1991 are partially exempt. Most other pension, 401(k), and IRA income and all capital gains are taxed at ordinary rates up to 9.9%, with the 8.75% bracket starting at just over $10,000 for single filers.
Rules summarized from the Oregon Department of Revenue guidance for tax year 2025. Amounts that index annually are described in general terms; confirm the current figure on the official form instructions.
Oregon Income Tax Brackets (Single Filers, 2025)
These are the Oregon state income tax brackets for single filers. Married-filing-jointly brackets use wider income thresholds. Only the income within each bracket is taxed at that rate -- not your entire income.
| Taxable Income (Single) | Tax Rate |
|---|---|
| $0 - $4,400 | 4.75% |
| $4,400 - $11,050 | 6.75% |
| $11,050 - $125,000 | 8.75% |
| Over $125,000 | 9.9% |
Source: Oregon Department of Revenue. Brackets shown are for single filers; married-filing-jointly thresholds are wider.
What a Oregon Resident Actually Pays: A Worked Example
Your effective tax rate is almost always lower than your top bracket. Here is how the math works for a single filer earning $65,000.
Where Oregon Stands Among the 50 States
Oregon's top rate of 9.9% ranks #5 of the 41 states that tax wages -- among the ten highest in the country. The median top rate across those 41 states is 5.2%, so Oregon is above the middle of the pack. It is one of 27 states with a graduated schedule, using 4 brackets; the top rate starts at $125,000 of taxable income, and the lowest bracket ends at $4,400.
On sales tax the picture is different: Oregon's combined state and average local rate of 0% ranks #50 of 50, against a national median of 7.00%.
Oregon State Tax at Five Income Levels (2025, single filer)
| Taxable income | Oregon tax | Effective rate | Marginal rate |
|---|---|---|---|
| $40,000 | $3,191 | 7.98% | 8.75% |
| $65,000 | $5,379 | 8.27% | 8.75% |
| $100,000 | $8,441 | 8.44% | 8.75% |
| $150,000 | $13,104 | 8.74% | 9.9% |
| $250,000 | $23,004 | 9.20% | 9.9% |
Brackets applied directly to the taxable-income figure shown, before Oregon-specific deductions, exemptions, or credits. Federal tax is separate and comes on top of every row.
Oregon vs. Its Neighbors on $75,000 of Taxable Income
A Oregon resident with $75,000 of taxable income pays about $6,254 in state income tax. Of Oregon's 4 neighboring states, 4 would tax that income less and 0 would tax it more -- Oregon is the most expensive state in its region on this measure.
| State | Structure | Tax on $75,000 | Top rate | Sales tax |
|---|---|---|---|---|
| Oregon (you) | Graduated | $6,254 | 9.9% | 0% |
| Nevada | No income tax | $0 | None | 8.23% |
| Washington | No income tax | $0 | None | 9.38% |
| California | Rate to 13.3% | $3,517 | 13.3% | 8.82% |
| Idaho | Rate to 5.3% | $3,975 | 5.3% | 6.02% |
Frequently Asked Questions -- Oregon Income Tax
Does Oregon have a state income tax?
Yes. Oregon imposes a state income tax with a top marginal rate of 9.9%. This is separate from your federal income tax obligation.
What is the Oregon income tax rate for 2025?
Oregon uses a graduated income tax system with rates from 4.75% to 9.9%. Only the income within each bracket is taxed at that bracket's rate -- not your entire income.
Do I have to file a Oregon state tax return?
Most full-year Oregon residents with income above the state filing threshold must file a state return. Check the Oregon Department of Revenue for current thresholds and requirements.
How accurate is this estimate?
The federal figure uses the official IRS 2025 brackets and standard deduction. The Oregon figure applies the 2025 single-filer rate schedule to the same taxable income; it does not model Oregon-specific deductions, exemptions, credits, or local income taxes, so treat it as a planning number and confirm with the Oregon Department of Revenue or a tax professional before filing.
How does Oregon compare with nearby states?
On $75,000 of taxable income, Oregon collects about $6,254. Nevada collects $0, Washington collects $0, California collects $3,517, Idaho collects $3,975. See the comparison table above.
Where does Oregon rank on state income tax?
Oregon's top rate of 9.9% ranks #5 of the 41 states with an income tax, against a median top rate of 5.2%. Its combined sales tax of 0% ranks #50 of 50.
Does this calculator include federal income tax?
Yes. It estimates your 2025 federal income tax using the official IRS 2025 brackets, then applies the Oregon rate schedule to the same taxable income and shows both figures plus the combined total.
Where can I find official Oregon tax forms?
Official forms, instructions, and filing guidance are available at the Oregon Department of Revenue.
What is the sales tax rate in Oregon?
Oregon's combined state and average local sales tax rate is 0%. This is separate from income tax and applies to most retail purchases -- use our sales tax calculator to check a specific purchase.
When are Oregon 2025 state taxes due?
2025 taxes are generally filed in 2026. The Oregon filing deadline is April 15, 2026, the same as the federal deadline.
Understanding Your Oregon Tax Estimate
Your results combine two separate bills: federal tax owed to the IRS, and Oregon state tax owed to the Oregon Department of Revenue. The state return is filed separately from your federal Form 1040, with a state filing deadline of April 15. For the mechanics of how bracket math actually works -- why your effective rate is almost always lower than your top bracket -- see our marginal vs. effective tax rate guide.
Lowering Your Oregon Bill
Pre-tax retirement contributions reduce your federal and Oregon taxable income in the same move -- see our 401(k) contribution limits and HSA limits guides for the current caps. Beyond that, Oregon-specific credits and deductions that don't exist at the federal level are listed at the Oregon Department of Revenue -- worth checking, since these are easy to miss if you only look at federal guidance.
Combined Sales + Income Tax Picture
Oregon's combined state-plus-average-local sales tax rate is 0%. If you're self-employed, that's an added layer on top of income tax -- our self-employment tax calculator covers the SE-specific piece separately.
Disclaimer: Estimates for educational purposes only. State tax results are approximations based on published bracket data and do not account for all deductions, credits, exemptions, local taxes, or individual situations. Not tax, legal, or financial advice. Consult the Oregon Department of Revenue or a qualified tax professional for guidance specific to your situation.