Oregon Department of Revenue : Calculator : Individuals : State of Oregon

The flat rate is scheduled to phase down to 4.7 percent in 2024, 4.4 percent in 2025, and 4 percent in 2026. 1002, a bill to accelerate previously planned individual and corporate income taxA corporate income tax (CIT) is levied by federal and state governments on business profits. Many companies are not subject to the CIT because they are taxed as pass-through businesses, with income reportable under the individual income tax.

(bb) The standard deduction is 15 percent of income with a minimum of $1,600 and a cap of $2,400 for single filers and married filing separately filers. The standard deduction is a minimum of $3,200 and capped at $4,850 for MFJ filers, head of household filers, and qualifying widows/ widowers. The minimum and maximum standard deduction amounts are adjusted annually for inflation.

Government Finance: Taxes

(qq) Taxpayers also receive an additional deduction of $1,050 for each standard deduction box checked on federal Form 1040. (n) State provides a state-defined personal exemption amount for each exemption available and/or deductible under the Internal Revenue Code. Under the Tax Cuts and Jobs Act, the personal exemption is set at $0 until 2026 but not eliminated. Because it is still available, these state-defined personal exemptions remain available in some states but are set to $0 in other states. Property taxes are the primary tool for financing local governments and generate a significant share of state and local revenues. Note that these are marginal rates, so they only apply to the portion of the estate falling within that bracket.

  • Form OR-40-P filers will need to multiply the tax by their Oregon percentage on their return.
  • Some high-income earners may also have to pay an additional Medicare surtax of 0.9% on wages above a max level.
  • (jj) The phaseout range for the standard deduction, personal exemption, and dependency exemption is $233,750 to $260,550.
  • For the Single, Married Filing Jointly, Married Filing Separately, and Head of Household filing statuses, the OR tax rates and the number of tax brackets remain the same.

Nonresidents can multiply the total amount available to an Oregon resident by their Oregon percentage, which determines the modifications, deductions, and tax credits available to them. Typically, it’s found by dividing income in the Oregon column of your tax return after subtractions by your income in the federal column of your tax return after subtractions. Technically, you don’t have just one “tax bracket” – you pay all of the Oregon marginal tax rates from the lowest tax bracket to the tax bracket in which you earned your last dollar. For comparison purposes, however, your Oregon tax bracket is the tax bracket in which your last earned dollar in any given tax period falls.

State Individual Income Tax Rates and Brackets for 2017

The state of Oregon requires you to pay taxes if you’re a resident or nonresident that receives income from an Oregon source. Oregon assesses income taxes up to 9.9%, and doesn’t have a general sales tax rate. The Federal income tax also has a standard deduction, personal exemptions, and dependant deductions, though they are different amounts than Oregon’s and may have different rules. Income tax deductions are expenses that can be deducted from your gross pre-tax income.

Using deductions is an excellent way to reduce your Oregon income tax and maximize your refund, so be sure to research deductions that you mey be able to claim on your Federal and Oregon tax returns. For details on specific oregon income tax rate deductions available in Oregon, see the list of Oregon income tax deductions. All filers can get their tax using the personal income tax calculator instead of using the tax rate charts or tables in the return instructions.

US Income Tax Calculator

Oregon was one of the first Western states to adopt a state income tax, enacting its current tax in 1930. It consists of four income tax brackets, with rates increasing from 4.75% to a top rate of 9.9%. That top marginal rate is one of the highest rates in the country. Only a small subset of taxpayers actually pays that rate, however, as it applies only to single taxpayers making at least $125,000 a year ($250,000 for joint filers). The table below shows the full tax brackets and rates for the state income tax in Oregon.

oregon income tax brackets

Oregon residents and nonresidents who earn income in Oregon pay personal income tax. As part of the 2019 legislation that created the Corporate Activity Tax effective beginning in tax year 2020, the Legislature reduced Oregon’s first three income tax brackets from 5%, 7% and 9%, to 4.75%, 6.75% and 8.75% respectively. After deductions and credits, the average effective tax rate is about 6.4% of adjusted gross income. Since 1993, the income tax brackets have been indexed to changes in the Consumer Price Index. The current standard deduction is $4,840 on joint returns, $2,420 on single and married filing separate returns, and $3,895 for a head of household return. Blind or elderly taxpayers and persons over the age of 65, will receive an additional $1,200 standard deduction on a single return and an additional $1,000 per eligible person on a joint return.

(b) These states allow some or all of federal income tax paid to be deducted from state taxable income. New Hampshire exclusively taxes dividend and interest income while Washington only taxes capital gains income. Besides taxes, there may be other withholdings that might affect your Oregon paycheck.

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