Oregon Income Tax Calculator 2026
Free 2026 Oregon income tax calculator. Four brackets from 4.75% to 9.9%, no state sales tax, plus federal and FICA - see your real take-home pay instantly.
TL;DR
Oregon has no state sales tax - the only West Coast state without one. The trade-off: a top income tax rate of 9.9% kicks in at just $125,000 of taxable income, much earlier than California's 9.3% bracket.
How Oregon state income tax works (2026 overview)
Oregon taxes wages, self-employment income, retirement distributions and most other personal income at the rates above. The state collects tax through paycheck withholding (Form Oregon W-4 or its equivalent) and quarterly estimated payments for self-employed earners. Annual returns are due April 15 alongside the federal Form 1040.
Oregon state income tax brackets (2025-2026, single filer)
Oregon has four progressive brackets from 4.75% on the first $4,300 of taxable income to 9.9% on income above $125,000 - one of the highest top rates in the country.
| Taxable income | Marginal rate |
|---|---|
| $0 to $4,300 | 4.75% |
| $4,300 to $10,750 | 6.75% |
| $10,750 to $125,000 | 8.75% |
| $125,000 and above | 9.9% |
Oregon does not have a state sales tax, which offsets the high income tax for residents. Oregon also has a Statewide Transit Tax of 0.1% on wages.
Oregon take-home pay calculator
Enter your annual gross salary and filing status. The calculator runs federal 2026 brackets + Oregon state rules + FICA in your browser - nothing leaves the page.
Estimate only. Uses 2026 IRS brackets and Oregon state rules. Does not include local city tax, retirement deductions, or pre-tax health insurance.
Oregon take-home examples at common salary levels (2026, single filer)
Here is what a single filer keeps after federal income tax, Oregon state tax, and FICA at five common salary levels in 2026. All numbers assume only the standard deduction and no retirement contributions, health-insurance premiums, or state-specific credits - the simplest case.
| Gross salary | Federal tax | Oregon state tax | FICA | Take-home | Effective rate |
|---|---|---|---|---|---|
| $50,000 | $3,968 | $3,834 | $3,825 | $38,373 | 23.3% |
| $75,000 | $8,253 | $6,021 | $5,738 | $54,988 | 26.7% |
| $100,000 | $13,753 | $8,209 | $7,650 | $70,388 | 29.6% |
| $150,000 | $25,442 | $12,840 | $11,475 | $100,243 | 33.2% |
| $250,000 | $52,886 | $22,740 | $14,543 | $159,831 | 36.1% |
FICA = 6.2% Social Security on the first $176,100 of wages plus 1.45% Medicare on all wages. Married-filing-jointly numbers are roughly 5-8% lower at every income level because the federal brackets are nearly twice as wide and federal standard deduction doubles.
How Oregon compares to neighbors (Washington, California, Idaho, Nevada)
Same scenario for every state: $75,000 gross annual salary, single filer, no other deductions, 2026 federal brackets, $15,000 standard deduction. The only difference is the state tax line.
| State | Effective state rate | State tax at $75k | Take-home after all taxes |
|---|---|---|---|
| Oregon (this state) | 8.35% | $6,262 | $54,748 |
| California | 4.13% | $3,098 | $57,912 |
| Nevada | 0% | $0 | $61,010 |
Effective state rate = state income tax divided by gross income. Federal tax ($8,253) and FICA ($5,738) are identical across all states.
Oregon tax-planning checklist for 2026
- Adjust your W-4. Most Oregon employers withhold using state-specific allowances. Mid-year raises, marriage, and dependent changes all warrant a fresh W-4 to avoid an oversized refund or an unexpected April bill.
- Maximize pre-tax 401(k)/403(b). Contributions reduce both federal AND state taxable income in every state with an income tax. The 2026 federal limit is $23,500 ($31,000 with age 50+ catch-up).
- Use an HSA if eligible. HSA contributions through payroll are exempt from federal tax, FICA, and state tax in most states (including all 10 on this list). 2026 family contribution limit is $8,550.
- Track Oregon-specific credits. Most states offer credits for state income tax paid to other states, dependent care, low-income workers (EITC), and renewable energy investments. Each credit is worth more than a deduction at the same dollar amount.
- Time year-end income. If you expect to move to a no-income-tax state next year, defer year-end bonuses, RSU vests, and option exercises into the new tax year.
Frequently asked questions about Oregon income tax
What are Oregon's income tax brackets?
Four brackets: 4.75% on the first $4,300, 6.75% from $4,301 to $10,750, 8.75% from $10,751 to $125,000, and 9.9% on income above $125,000 for single filers.
Does Oregon have a state sales tax?
No. Oregon is one of only five US states with no state sales tax (alongside Alaska, Delaware, Montana, and New Hampshire). This makes Oregon attractive for retail purchases but contributes to the relatively high income tax burden.
What is the Oregon kicker refund?
Oregon's 'kicker' is a unique law that returns excess revenue to taxpayers when collections exceed projections by more than 2%. The 2023 kicker was approximately 44.28% of 2022 state tax liability - one of the largest in state history.
Does Oregon tax Social Security?
No. Oregon fully exempts Social Security benefits from state income tax. Oregon also offers a partial retirement income credit for taxpayers age 62+.
How does Oregon's lack of sales tax compare to Washington's no income tax?
For most middle-income earners, Oregon's setup is more progressive: lower-income residents benefit from no sales tax, while higher earners shoulder more of the burden via the 8.75%-9.9% brackets. Washington's all-sales-tax model is more regressive.
What is the Oregon Statewide Transit Tax?
A 0.1% tax on wages introduced in 2018 to fund public transit and rail improvements. It's withheld from every paycheck regardless of income level.
Can I deduct federal taxes paid on my Oregon return?
Yes, but capped. Oregon allows a federal tax subtraction of up to $7,800 (single) / $15,750 (joint) for 2024, phased out for higher incomes. This is unusual - most states do not allow any deduction for federal tax paid.
What is the Portland Arts Tax?
Portland residents age 18+ with income above the federal poverty line pay a flat $35 annual Arts Tax to fund school art teachers and arts grants. It's separate from state income tax.
Key terms used on this page
- Marginal tax rate
- The tax rate applied to your last dollar of taxable income - your bracket. If you earn $90,000 in Oregon and the rate that applies to your last dollar is 5.85%, your marginal rate is 5.85%, even though most of your income is taxed at lower rates.
- Effective tax rate
- Your total tax divided by your gross income, expressed as a percentage. Because lower brackets tax earlier dollars at lower rates, your effective rate is always less than your marginal rate in progressive states. In a flat-tax state, marginal and effective rates are usually very close (offset only by deductions and exemptions).
- Standard deduction
- A fixed amount you subtract from gross income before calculating tax. For 2026 federal returns, the standard deduction is $15,000 single, $30,000 married filing jointly, and $22,500 head of household. Many states (including Oregon if it offers one) have separate state standard deductions at different amounts.
- FICA (Social Security + Medicare)
- The federal payroll tax that funds Social Security and Medicare. As an employee, you pay 6.2% Social Security on the first $176,100 of 2026 wages plus 1.45% Medicare on all wages. Self-employed earners pay both halves (15.3% total) but can deduct half on their federal return.
- Withholding
- The tax your employer takes out of each paycheck and remits to the IRS and your state on your behalf. Adjusted via the federal Form W-4 (federal) and your state's W-4 equivalent. Over-withholding produces a refund; under-withholding produces an April bill (and possibly a penalty).
- Filing status
- Single, Married Filing Jointly (MFJ), Married Filing Separately (MFS), Head of Household (HoH), or Qualifying Widow(er). Determines which bracket schedule applies and the size of your standard deduction. Most married couples should compare MFJ vs MFS each year - MFS is occasionally better when one spouse has high medical expenses or unreimbursed business losses.
- Tax credit vs deduction
- A deduction reduces your taxable income (saves you tax = deduction x marginal rate). A credit reduces your tax dollar-for-dollar (saves you tax = credit amount). A $1,000 credit is worth more than a $1,000 deduction at the same income level.
Methodology and sources
Federal brackets: The 2026 federal income tax brackets used by the calculator (10%, 12%, 22%, 24%, 32%, 35%, 37% with single thresholds of $11,600, $47,150, $100,525, $191,950, $243,700, $609,350) are from the IRS Revenue Procedure published for tax year 2026, adjusted from 2025 for inflation. The 2026 federal standard deduction is $15,000 single, $30,000 married filing jointly, and $22,500 head of household.
State rules: The Oregon state tax brackets, standard deduction, and other state-specific rules used on this page are sourced from the official Oregon Department of Revenue (or equivalent state authority) for tax year 2025-2026.
FICA: Social Security wage base of $176,100 for 2026 (taxed at 6.2%) and Medicare tax of 1.45% on all wages. The Additional Medicare Tax (0.9%) on wages above $200,000 single / $250,000 joint is NOT modeled in the calculator above - it applies to high earners and would shave a small amount off the displayed take-home at those levels.
What the calculator does NOT model:
- Local city, county, or school district income tax (relevant in OH, PA, MI, NY-NYC, MD, AL among others)
- Pre-tax 401(k), 403(b), 457(b), HSA, and FSA contributions (each would reduce both federal AND state taxable income)
- Pre-tax health, dental, and vision insurance premiums
- State-specific credits (EITC, dependent care, retirement income exclusion, etc.)
- Itemized deductions for taxpayers who itemize instead of taking the standard deduction
- The federal Additional Medicare Tax (0.9%) on high earners
- The federal Net Investment Income Tax (3.8%) on investment income for high earners
- Alternative Minimum Tax (AMT) at the federal or state level
Limitations: The calculator is an estimate, not tax advice. For any decision with material financial consequences, consult a qualified tax professional licensed in Oregon. Tax rules change frequently - this page reflects rules as of the date below.
Page generated by 3Tej's state-tax page builder. Last updated 2026. Rules current as of January 2026 - check the official Oregon Department of Revenue website (or your state equivalent) for any changes during the tax year.