While putting money in these accounts shrinks your paycheck, it also lowers your taxable income (and, in the case of retirement accounts, simultaneously helps secure your financial future). In this guide, we’ll explore key components of The Beaver State’s tax system, from income and sales taxes to property taxes and retirement benefits. Income tax deductions are expenses that can be deducted from your gross pre-tax income.
Who handles paying real estate tax payments?
- The 2025 interest rate is ten percent (10%) per year or .833 percent per month.
- The tax return form requires taxpayers to report their taxable income and any credits or deductions they are eligible to claim.
- Please remember Oregon city income tax returns are due April 15th or, if it falls on a weekend, the first business day after April 15th.
- Tax-Rates.org provides easy access to five of the most commonly used Oregon income tax forms, in downloadable PDF format.
- If credit is taken for tax paid to another city, you must include a copy of that city’s return.
As mentioned above, these are pre-tax contributions, so not only do they help you save for the future, they also save you money on your taxes now. It’s also important to remember federal estate tax also applies if your estate is above a certain threshold ($13.61 million in 2024 for individuals). Tax exclusions are an amount of money or income that is not subject to taxation. This means that taxpayers do not have oregon income tax rate to pay taxes on this income. Oregon has a graduated state individual income tax ranging from 4.75% to 9.9%, according to the Tax Foundation.
Timber Taxes
Retail sales taxes are an essential part of most states’ revenue toolkits, responsible for 24 percent of combined state and local tax collections. Forty-four states levy a corporate income tax, with top rates ranging from a 2.25 percent flat rate in North Carolina to a 11.5 percent top marginal rate in New Jersey. Oregon has a 40 cents per gallon gas tax rate and a $3.33 cigarette excise tax rate.
Sales Taxes
- For income earned in 2024 and reported on tax returns filed in 2025, taxpayers are subject to the Oregon state tax rates shown in the table below.
- But if you want to raise tax rates on the rich and big corporations to fund schools or other essential services, then you need three-fifths of each chamber of the legislature to agree.
- You can drop off your tax form and make non-cash payments in person at our main office in Salem or at one of our regional field offices in Bend, Eugene, Gresham, Medford, or Portland.
- From Jesus to Adam Smith, there is wide agreement that a fair tax system is one based on the ability to pay — one that asks proportionately more of a rich person than of a poor person.
Oregon has an estate tax for estates valued at more than $1 million. Most taxpayers use the standard deduction because it results in a lower taxable income than itemizing deductions. If your deductible expenses don’t exceed these amounts, the standard deduction is a straightforward way to simplify your filing while maximizing your deductions. Taxpayers owing more than $1,000 annually are required to make estimated tax payments, which can be remitted through the City of Portland’s website. File an Oregon income tax return for the decedent if they had enough income to require filing for the part of the year they were alive or if they’re entitled to a refund.
Payroll Withholding and Transit
Oregon was one of the first Western states to adopt a state income tax, enacting its current tax in 1930. It consists of four income tax brackets, with rates increasing from 4.75% to a top rate of 9.9%. That top marginal rate is one of the highest rates in the country. Only a small subset of taxpayers actually pays that rate, however, as it applies only to single taxpayers making at least $125,000 a year ($250,000 for joint filers). The table below shows the full tax brackets and rates for the state income tax in Oregon.
Combined Payroll
Marginal tax rates start at 4.75 percent and, as a taxpayer’s income goes up, rates quickly rise to 6.75 Online Bookkeeping percent and 8.75 percent, topping out at 9.9 percent. The thing to note is that it doesn’t take much income to get to the next-to-highest tax bracket of 8.75 percent. For couples filing taxes together, the 8.75 percent tax rate kicks in at $18,400 of taxable income (what you’re left with after all tax subtractions and deductions, but before tax credits). That rate stays in place until a couple reaches $250,000 of taxable income.
Vaping Taxes by State, 2025
Revenue from the property tax typically goes to support local services such as schools and law enforcement. This means that if you’re an Oregon resident, and you have to include the forgiven debt as income on your federal income tax return, it will also be taxed by Oregon. If you do not have to include the forgiven debt on your federal return, it will not be taxed by Oregon. In general, income that is included on your federal income tax return is taxed by Oregon unless federal law or the Oregon Legislature has made an exception for it. See our Subtractions page for a list of income items that are included on your federal online bookkeeping return that Oregon doesn’t tax.
Other things to know about Oregon taxes
Read about Oregon’s timber harvest taxes filing requirements to choose a filing option. Read about Oregon’s timber harvest taxes filing requirements to choose a filing option. Visit our forms page, search for “Form OR-40”, and select the appropriate return and instructions for your residency status. Fill out the form and mail it to the address listed in the instructions. The 2016 interest rate is five percent (5%) per year or .417 percent per month. The 2017 interest rate is six percent (6%) per year or .5 percent per month.