Oregon Income Tax Calculator
4 brackets • 4.75% to 9.9% • No sales tax • Kicker credit included
Tell us about your Oregon income
Your Oregon Take-Home Pay
How your gross pay flows through Oregon tax
Tax Efficiency Score
Calculating your efficiency score…
Your Oregon tax brackets
| Rate | Income range | Taxed in this band | Tax from band |
|---|
Oregon Kicker Credit — your surplus refund
Oregon’s constitution requires the state to refund the entire surplus when income tax revenues beat the legislatively approved forecast by more than 2%. For tax year 2025, the Oregon Department of Revenue confirmed a kicker rate of 9.863% of your 2024 Oregon income tax liability before credits. Enter your 2024 Oregon tax above to see your estimated kicker.
Your Kicker Credit Estimate (TY 2025)
Oregon’s federal tax deduction — capped at $8,500
Unlike most states, Oregon lets you deduct the federal income tax you paid from your income before Oregon tax is calculated — but the deduction is capped at $8,500 for 2025. Here’s how it works for your income.
Oregon’s no-sales-tax advantage
Oregon is one of only five states with no sales tax. The table below estimates how much you’d spend on sales tax living elsewhere — at typical spending patterns for your income level — compared to $0 in Oregon.
| State | State income tax | Est. sales tax paid/yr | Combined burden vs. Oregon |
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What if you got a raise or bonus?
Compare Oregon to neighboring states
| State | State income tax | Take-home pay | vs. Oregon |
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How does your filing status change the math?
| Filing status | Standard deduction | OR tax owed | Effective rate |
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Your take-home, broken down every way
5-year income projection
Assumes 3% annual raise and current Oregon brackets held constant.
| Year | Gross income | Federal tax (est.) | Oregon tax | Take-home pay |
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Understanding Oregon State Income Tax: What Every Oregon Earner Should Know
Oregon has been taxing personal income since 1930, making it one of the oldest state income tax systems in the country. Today it runs four progressive brackets — 4.75%, 6.75%, 8.75%, and 9.9% — and that top rate of 9.9% ranks among the highest of any U.S. state. What keeps Oregon’s overall tax burden from being quite as painful as that headline suggests is a combination of no sales tax anywhere in the state, a federal income tax deduction (up to $8,500) that most states don’t allow, and the one-of-a-kind Kicker Credit that can send meaningful cash back to filers when the state’s revenue forecasts run hot.
The way Oregon calculates taxable income is also worth understanding. Rather than building from scratch, Oregon starts from your federal adjusted gross income — the AGI number on line 11 of your federal Form 1040 — and then applies Oregon-specific additions and subtractions to arrive at Oregon AGI. That means your pre-tax 401(k) contributions, HSA deductions, and other federal above-the-line deductions automatically reduce your Oregon income too, before the standard deduction is even factored in.
How Oregon’s four tax brackets work in practice
Oregon’s bracket structure is four tiers, but the thresholds are relatively low by national standards. The 4.75% bottom bracket covers only the first $4,400 of taxable income for single filers (double that for joint filers). The 6.75% bracket runs from $4,400 to $11,050. Then an 8.75% bracket stretches from $11,050 all the way up to $125,000 — which is where most Oregon middle-income earners land. Above $125,000 the 9.9% rate applies. Because the 8.75% bracket is so wide, it captures the bulk of income for typical Oregon households, making effective rates cluster in the 7-9% range for most filers before considering deductions and credits.
The Oregon Kicker Credit — the state’s surplus refund system
The Oregon Kicker is unlike anything offered by another state. Oregon’s constitution (Article IX, Section 2) requires that whenever actual personal income tax revenues exceed the legislative forecast by more than 2%, the entire surplus — not just the excess above 2% — is returned to taxpayers. The kicker is calculated as a percentage of your prior-year Oregon income tax liability before credits, and you claim it as a credit on the following year’s return. For tax year 2025, the Oregon DOR confirmed the kicker rate at 9.863%, meaning Oregon taxpayers who owed $4,000 in 2024 Oregon taxes would receive approximately $395 back. The kicker doesn’t apply every year — it’s tied to revenue surprises — but when it does trigger, it can meaningfully offset your annual state tax bill.
Oregon’s federal income tax deduction — a rare and valuable break
Oregon is one of only a handful of states that allows residents to deduct the federal income taxes they paid from their state taxable income. For 2025, Oregon caps this deduction at $8,500. For a middle-income earner paying, say, $7,500 in federal taxes, that entire amount reduces Oregon taxable income before the state’s brackets are applied. At Oregon’s 8.75% bracket, that’s roughly $656 in annual state tax savings just from this deduction. High earners whose federal tax bill exceeds $8,500 hit the cap, so the benefit is most impactful for middle-income filers — which is somewhat progressive by design.
Why no sales tax changes the picture significantly
Oregon’s income tax rate looks steep compared to, say, Nevada or Washington, but neither of those states has zero sales tax. A Washington resident paying 6.5% on most purchases and a typical middle-income spending pattern can easily spend $2,000 to $3,000 per year in sales tax. Oregon residents pay nothing on purchases at the register, which materially lowers the real combined tax burden for everyday spenders. The comparison is imperfect — Washington has no income tax on wages, so high earners shift the math — but for most Oregon households, the no-sales-tax advantage is one of the most tangible tax benefits they have.
Local taxes you should know about if you live in or near Portland
Oregon’s state income tax is uniform across the state, but Portland-area residents face two additional local taxes that don’t appear on the state return. Multnomah County levies the Preschool for All (PFA) tax: 1.5% on Oregon taxable income between $125,000 and $250,000, and 3% on income above $250,000, for both single and joint filers. The Metro Supportive Housing Services (SHS) tax applies to anyone with Oregon taxable income above $125,000 (single) or $200,000 (joint) who lives within the Metro boundary — at a rate of 1%. These taxes are filed separately from your OR-40 and are not calculated by this tool, but if you live in Portland, Gresham, Beaverton, or other Metro cities, they’re worth factoring into your planning.
Oregon standard deduction amounts for current tax year
| Filing status | Standard deduction | Additional (age 65+ or blind) |
|---|---|---|
| Single | $2,835 | +$1,200 per qualifying person |
| Married Filing Jointly | $5,670 | +$1,000 per qualifying person |
| Married Filing Separately | $2,835 | +$1,000 per qualifying person |
| Head of Household | $4,560 | +$1,200 per qualifying person |
Source: Oregon Department of Revenue, 2025 Form OR-40 Instructions
Oregon income tax brackets at a glance
| Rate | Single / MFS taxable income | MFJ / HOH taxable income |
|---|---|---|
| 4.75% | $0 – $4,400 | $0 – $8,800 |
| 6.75% | $4,400 – $11,050 | $8,800 – $22,100 |
| 8.75% | $11,050 – $125,000 | $22,100 – $250,000 |
| 9.9% | Over $125,000 | Over $250,000 |
Source: 2025 Oregon OR-40 Tax Rate Tables (Oregon DOR, official PDF)
Frequently asked questions about Oregon income tax
What is the Oregon income tax rate for someone making $75,000?
A single filer earning $75,000 in Oregon starts with the standard deduction of $2,835 and the federal deduction (capped at $8,500), bringing taxable income down to roughly $63,665 or less. Most of that income is taxed at 8.75%, with the lower portions at 4.75% and 6.75%. The effective Oregon tax rate for this earner is typically in the 7–8% range. Use the calculator above for an exact figure based on your specific situation.
What is Oregon’s Kicker Credit and how do I claim it?
The Oregon Kicker is a constitutionally required surplus refund. When actual income tax revenues exceed the legislatively approved forecast by more than 2%, Oregon returns the entire surplus to taxpayers as a credit on the following year’s return. You claim it on Schedule OR-ASC as a credit against your Oregon tax. For TY 2025, the confirmed kicker rate is 9.863% of your 2024 Oregon income tax liability before credits. If you didn’t owe Oregon tax in 2024, you don’t receive a kicker.
Does Oregon tax Social Security benefits?
Oregon taxes federally taxable Social Security benefits at the state level, but offers a partial subtraction for lower-income filers. The subtraction phases out as income rises, and at higher income levels Social Security becomes fully subject to Oregon income tax. This is a meaningful planning consideration for retirees moving to Oregon.
Does Oregon have a local income tax?
Oregon state income tax is uniform statewide, but Portland-area residents face additional local taxes. Multnomah County levies the Preschool for All (PFA) tax (1.5%–3% on income above $125,000), and the Metro boundary imposes a 1% Supportive Housing Services tax on income above $125,000 (single) or $200,000 (joint). These are filed separately from the state return.
Can I deduct federal income tax on my Oregon return?
Yes — Oregon is one of only a few states that allows a deduction for federal income taxes paid. For tax year 2025, the deduction is capped at $8,500 for all filing statuses. This reduces your Oregon taxable income before brackets are applied, which can save several hundred dollars in state tax for middle-income earners.
Is Oregon a high-tax state?
By income tax rate alone, yes — Oregon’s 9.9% top rate ranks among the highest in the country. But the full picture is more balanced: Oregon has no sales tax (saving most households $1,500–$3,000 per year compared to neighboring states), allows a federal tax deduction, and runs the Kicker Credit program. For middle-income earners, Oregon’s combined tax burden is closer to the national average than the headline income tax rate suggests.
Tax data on this page reflects current Oregon income tax brackets, standard deductions, and the federal deduction cap as published by the Oregon Department of Revenue (oregon.gov/dor) and verified against the 2025 Form OR-40 Tax Rate Tables (official PDF). The Oregon Kicker rate of 9.863% is confirmed by the Oregon DOR for tax year 2025. Federal bracket estimates reference IRS.gov inflation adjustment guidance. Portland-area local tax figures (PFA and Metro SHS) are not included in the calculator. This tool is for general estimation only and does not constitute tax, legal, or financial advice. Consult a qualified CPA or the Oregon DOR for your specific situation.