Oregon Paycheck Calculator — Current Tax Year
Oregon trades a sales tax for one of the steepest income tax structures in the country — and if you work in the Portland metro area, two additional local income taxes stack directly on top of the state rate. This tool models the full picture, including a genuinely unusual Oregon-only feature: a subtraction for federal tax paid that most other states simply don’t offer.
🧮 Test a Raise, New Job, or Pay Cut
Oregon’s 8.75% bracket starts surprisingly early, so even a modest raise can land you firmly in it. See exactly what changes.
Why Oregon’s Tax Math Surprises So Many New Residents
People moving to Oregon from a sales-tax state often celebrate the absence of sales tax and don’t look closely at the income tax side until their first real paycheck lands. That’s when the second bracket shows up faster than expected: Oregon’s 8.75% rate, its third and second-highest tier, begins at roughly $10,200 of taxable income for a single filer. Compare that to a state like California, where a comparable mid-high bracket doesn’t kick in until far higher income, and you can see why Oregon’s reputation as a high-tax state is earned in the middle of the income spectrum, not just at the very top.
A Genuinely Unusual Feature: The Federal Tax Subtraction
Oregon does something almost no other state does: it lets you subtract a portion of the federal tax you actually paid from your Oregon taxable income, up to an annual cap. It’s a small mechanism most paycheck calculators ignore entirely, but it’s real, and it slightly softens Oregon’s otherwise aggressive bracket structure. This calculator factors it in rather than skipping it.
- Federal tax subtraction — a capped deduction for federal tax paid, unique to Oregon among most states.
- $236 personal exemption credit per person — note this is a tax credit subtracted directly from tax owed, not a deduction from taxable income, which makes it more valuable for lower earners.
- Statewide Transit Tax — a flat 0.1% on all wages, no exemptions, no income threshold, applied to every Oregon paycheck regardless of where you live in the state.
- Portland-area local taxes — Metro’s Supportive Housing Services tax and Multnomah County’s Preschool for All tax both apply only within the Portland metro area, and only above specific income thresholds.
| Deduction | Rate | Applies To |
|---|---|---|
| Federal Income Tax | 10%–37% | Taxable income after deductions |
| Oregon State Tax | 4.75%–9.9% | OR taxable income; 4 brackets, widen for joint filers |
| Statewide Transit Tax | 0.1% | All Oregon wages, no cap |
| Metro SHS Tax | 1% (Portland area only) | Income above $125,000 single / $200,000 joint |
| Multnomah PFA Tax | 1.5%–3% (Multnomah Co. only) | Income above $125,000 / $250,000 single thresholds |
| Social Security | 6.2% | Income up to the annual wage base |
| Medicare | 1.45% | All earned income, plus 0.9% for high earners |
If You Work in the Portland Metro Area
Two separate local income taxes — administered by the City of Portland Revenue Division, not the Oregon Department of Revenue — apply only to residents of (or income sourced within) the Metro district and Multnomah County. Both have meaningful income thresholds before they kick in, so most moderate-income earners in the area won’t actually owe either one. Toggle the checkbox above if this applies to you; the calculator only applies these taxes when you do, since most Oregon residents outside the Portland metro area never encounter them at all.
Frequently Asked Questions
Why does Oregon’s second-highest tax bracket start so low?
Oregon’s bracket structure front-loads its higher rates compared to many states, with the 8.75% bracket beginning at roughly $10,200 of taxable income for single filers, meaning most full-time workers reach it quickly.
What is Oregon’s federal tax subtraction?
It’s a state-specific deduction that lets Oregon filers subtract a capped portion of the federal income tax they actually paid from their Oregon taxable income, a feature most other states don’t offer.
What is the Oregon Statewide Transit Tax?
It’s a flat 0.1% tax withheld from every Oregon paycheck, with no income threshold or exemption, funding statewide public transportation improvements.
Do all Oregon residents pay Portland’s local income taxes?
No. The Metro Supportive Housing Services tax and Multnomah County’s Preschool for All tax apply only to residents of the Portland metro area or Multnomah County specifically, and only above certain income thresholds.
How accurate is this calculator?
This tool applies Oregon’s four-tier bracket structure, the federal tax subtraction, the $236 per-person exemption credit, the statewide transit tax, optional Portland-area local taxes, standard federal tax brackets, and current FICA rates to closely estimate take-home pay.
Does Oregon tax Social Security benefits?
No. Oregon does not tax Social Security or Railroad Retirement Board benefits, though this doesn’t directly affect a working paycheck since Social Security benefits aren’t part of wage income.
Does a 401(k) contribution reduce my Oregon state tax?
Yes. Oregon generally follows the federal definition of taxable wages, so pre-tax 401(k) contributions reduce taxable income for both federal and Oregon state tax purposes.
Is it true Oregon has no sales tax?
Yes, Oregon is one of only five U.S. states with no general state or local sales tax, which is part of why the state leans so heavily on income tax for revenue.
Explore More Paycheck Calculators
Continuing through the calculator series? These pages share the same verified, formula-based methodology:
This calculator provides general estimates based on Oregon’s current four-tier bracket structure, the federal tax subtraction (capped), the per-person exemption credit, the statewide transit tax, optional Portland-area local taxes, standard federal tax brackets, and current FICA rates, for informational purposes only. It does not constitute tax or financial advice. Oregon’s bracket thresholds adjust annually for inflation and Portland-area local tax rules can change — confirm current figures with the Oregon Department of Revenue, the City of Portland Revenue Division, or a licensed tax professional before making financial decisions.