Oregon income tax runs from 4.75% to 9.9% — but the state has no sales tax, one of the best trade-offs in the West.
The federal government lets single filers deduct $16,100 before income tax applies. Oregon lets you deduct only $2,420. That gap — $13,680 taxed at 4.75–6.75% — costs a typical Oregon worker $650–$1,000 per year in additional state tax compared to a state with the same brackets but federal-conforming deductions. No city in Oregon adds a local income tax, though Portland-area workers face additional county-level levies.
Oregon is one of five states with no statewide sales tax — alongside Alaska, Delaware, Montana, and New Hampshire. For a household that spends $50,000 per year on goods and services, living in a high-sales-tax state like Washington (6.5% base, 10%+ in Seattle) would cost $5,000–$6,000 extra per year before a single income tax bracket is counted. Oregon workers pay more in income tax but keep every dollar at the register. Whether Oregon or Washington is "lower tax overall" depends heavily on your income and spending habits — high spenders often come out ahead in Oregon; high savers often prefer Washington.
Portland-area workers face extra levies on top of state income tax. The Metro Supporting Housing Services (SHS) tax adds 1% on income above $125,000 (individual) earned in the Metro jurisdictional area — roughly Multnomah, Washington, and Clackamas counties. Multnomah County's Preschool for All (PFA) tax adds another 1.5% on income above $125,000 and 3% above $250,000. Combined, a Portland-based worker earning $200,000 pays state income tax at 8.75% plus 1% SHS plus 1.5% PFA = 11.25% effective rate on that income — comparable to California. Workers in Salem, Eugene, or Bend avoid these surcharges entirely.
Oregon's standard deduction is extremely small. Oregon's $2,420 deduction (single) vs. the federal $16,100 means Oregon taxes an additional $13,680 of income at the entry bracket rate. A single worker earning $60,000 pays Oregon income tax on roughly $57,580 of income versus $43,900 at the federal level. This is the main reason Oregon's effective tax rate feels higher than the bracket rates suggest.
Oregon is a major destination for California high earners seeking lower taxes — but the comparison is more nuanced than it appears. California tops out at 13.3% vs. Oregon's 9.9%, which is meaningful at high incomes. But Oregon's 8.75% bracket starts at $46,200 (well below California's comparable bracket), and Portland levies can push effective rates above 11%. Oregon makes the most sense for high earners who live outside the Portland Metro or who earn below $125,000.
| Income (Single) | Income (Married) | Rate |
|---|---|---|
| $0 – $18,400 | $0 – $36,800 | 4.75% |
| $18,401 – $46,200 | $36,801 – $92,400 | 6.75% |
| $46,201 – $250,000 | $92,401 – $500,000 | 8.75% |
| Over $250,000 | Over $500,000 | 9.9% |
Standard deduction: $2,420 (single) / $4,840 (married). Oregon does not conform to the federal standard deduction. Portland-area workers may also owe Metro SHS and/or Multnomah County PFA levies — not reflected here.
Estimates only. Reflects OR state income tax (4.75%–9.9%) but not Portland Metro SHS or Multnomah County PFA levies. Consult a tax professional for advice.
| Gross Pay (this check) | $0.00 |
| Federal Income Tax | −$0.00 |
| Oregon State Tax (4.75%–9.9%) | −$0.00 |
| Social Security (6.2%) | −$0.00 |
| Medicare (1.45%) | −$0.00 |
| Net Take-Home Pay | $0.00 |
Oregon has four progressive brackets: 4.75% up to $18,400 (single), 6.75% from $18,401–$46,200, 8.75% from $46,201–$250,000, and 9.9% above $250,000. Oregon's standard deduction is only $2,420 (single) — far smaller than the federal $16,100 — so Oregon taxes substantially more of your income than federal brackets alone would suggest.
No — Oregon is one of five states with no statewide sales tax. You pay no sales tax in Portland, Eugene, Salem, Bend, or anywhere in Oregon. This is a significant financial benefit for high spenders. A household spending $60,000/year on taxable goods avoids $4,000–$6,000 in annual sales tax compared to living in Washington or California.
The Metro Supporting Housing Services (SHS) tax adds 1% on individual income above $125,000 earned within the tri-county Metro area (Multnomah, Washington, Clackamas counties). Multnomah County's Preschool for All (PFA) tax adds 1.5% above $125,000 and 3% above $250,000. Together these can add 2.5%+ for higher-earning Portlanders — this calculator shows only the state-level tax, not these local levies.
At $80,000 (single, biweekly pay), Oregon withholds approximately $280–$295 per paycheck in state income tax — roughly $7,300 annually. The effective state rate is about 9.1% because Oregon's tiny standard deduction means most of the $80,000 gets taxed, and much of it falls in the 8.75% bracket. On a $50,000 salary the effective rate is closer to 7–7.5%.
Oregon does not tax Social Security benefits for recipients with federal AGI below $22,500 (single) / $45,000 (married). Pension and retirement income is taxable in Oregon, unlike states such as Mississippi that exempt it fully. Military retirees received a phased exemption starting in 2022, rising toward full exemption by 2028.
It depends on income and spending. Washington has no income tax. Oregon has no sales tax. For someone earning $60,000 and spending heavily, Oregon often wins. For someone earning $150,000 in an average-sales-tax area like Spokane, Washington wins by a wide margin. The Cascades divide isn't just a geographic line — it's a meaningful tax jurisdiction line for border-area workers.
No — Oregon taxes overtime and tips as ordinary income. The One Big Beautiful Bill (2026) exempts overtime premiums and tip income from federal income tax only. Oregon has not enacted a similar exemption, so those wages are fully taxable at OR state rates. Use our Overtime Tax Calculator to see the federal savings portion.
No Oregon city levies a traditional local income tax on wages. The Portland Metro SHS and Multnomah County PFA levies are county/district-level taxes on higher earners, but they're not city income taxes in the traditional sense. Salem, Eugene, Bend, Medford, and all other Oregon cities have no local income tax beyond the Metro-area levies mentioned above.