How Oregon taxes your paycheck
Oregon taxes your 2026 wages in four brackets, from 4.75% to 9.9%. Most workers pay 8.75% on much of their income. The top rate starts above $125,000 for single filers.
You subtract a small standard deduction: $2,900 if single or $5,800 if married. Then a $260 credit comes off the tax for each person in your household. Oregon also lets you subtract part of your federal tax, which this estimate skips.
Two payroll items come out too: 0.6% for Paid Leave Oregon and 0.1% for the statewide transit tax. For example, a single filer earning $60,000 owes about $4,417.25 in income tax, plus $420 for both.
Oregon tax rates and rules for 2026
Oregon has graduated rates from 4.75% to 9.9%.
| Taxable income | Rate |
|---|---|
| $0 to $4,550 | 4.75% |
| $4,550 to $11,400 | 6.75% |
| $11,400 to $125,000 | 8.75% |
| Over $125,000 | 9.9% |
| Taxable income | Rate |
|---|---|
| $0 to $9,100 | 4.75% |
| $9,100 to $22,800 | 6.75% |
| $22,800 to $250,000 | 8.75% |
| Over $250,000 | 9.9% |
- Starts from
- Wages after pre-tax deductions
- 401(k) contributions
- Lower your state taxable wages
- Standard deduction
- $2,900 single, $5,800 married filing jointly, $2,900 married filing separately, $4,650 head of household
- Personal credit
- $260 per filer ($520 for a joint return); plus $260 per dependent
- Paid Leave Oregon
- 0.6% of wages up to $184,500
- Statewide transit tax
- 0.1% of wages
Local taxes
People in the Portland area may owe Metro's supportive housing services tax and Multnomah County's Preschool for All tax. Both apply only above set income levels. This estimate covers the state tax only.
This calculator covers the state tax only, so add any local tax on top.
What this estimate leaves out
- Oregon lets you subtract part of the federal income tax you paid, up to $8,750 in 2026. It shrinks at higher incomes. Leaving it out makes this estimate higher than your real Oregon tax.
- The personal exemption credit is $0 when federal adjusted gross income is over $100,000 (single or married filing separately) or $200,000 (other filing statuses).
- Figures are the Oregon Department of Revenue's estimated 2026 indexed amounts, published before the 2026 forms.
- Oregon credits such as the earned income credit and working family household and dependent care credit, and any kicker credit.
- The Portland Metro and Multnomah County income taxes.
- Payroll caps apply to each worker. For a married couple, the estimate applies one cap to the household's combined wages.
Frequently asked questions
What is the Paid Leave Oregon deduction?
It funds paid family, medical and safe leave. Workers pay 0.6% of wages in 2026, on up to $184,500 of pay. That's at most $1,107 for the year.
What is the Oregon statewide transit tax?
It's 0.1% of your wages, or $1 for every $1,000. There's no yearly cap. It's taken out for Oregon residents and for anyone else who works in Oregon.
Can I deduct federal tax on my Oregon return?
Yes, partly. Oregon lets you subtract some of the federal income tax you paid, up to $8,750 in 2026. The limit shrinks at higher incomes. This estimate leaves it out, so your real bill should be lower.
Is there local income tax in Oregon?
In the Portland area, yes, for higher earners. Metro and Multnomah County each have an income tax that starts above set income levels. Most of Oregon has no local income tax.
Does Oregon tax 401(k) contributions?
No. Money you put in a traditional 401(k) is left out of your Oregon income until you take it out.
Sources
- Oregon Department of Revenue: 2026 Publication OR-ESTIMATE (2026 rate charts, standard deduction, exemption credit, federal tax subtraction)
- Oregon Employment Department: 2026 tax rates press release (Paid Leave Oregon rate, 60% employee share, $184,500 cap)
- Oregon Department of Revenue: statewide transit tax
Figures checked 2026-10-25. The federal side uses the same 2026 rules as the main paycheck calculator, where the formula and method are explained. Found a problem? Tell us.