Oregon Department of Revenue : Personal Income Tax : Individuals : State of Oregon

You can save time and money by electronically filing your Oregon income tax directly with the . Benefits of e-Filing your Oregon tax return include instant submission, error checking, and faster refund response times. Most tax preparers can electronically file your return for you, or you can do it yourself using free or paid income tax software, like the examples listed below. Income tax deductions are expenses that can be deducted from your gross pre-tax income. Using deductions is an excellent way to reduce your Oregon income tax and maximize your refund, so be sure to research deductions that you mey be able to claim on your Federal and Oregon tax returns. For details on specific deductions available in Oregon, see the list of Oregon income tax deductions.

• Most tax preparers can electronically file your return for you, or you can do it yourself using free or paid income tax software, like the examples listed below.
• Two common ways of reducing your tax bill are credits and deductions.
• If you were Black, mixed-race, Hawaiian, or Chinese, you had to pay a tax not levied on white Oregonians.
• A .gov website belongs to an official government organization in the United States.
• The Federal income tax also has a standard deduction, personal exemptions, and dependant deductions, though they are different amounts than Oregon’s and may have different rules.

Oregon: Federal Retirement Plan Thresholds in 2023

For previous years’ tax rates, refer to the tax charts on the last page of Publication OR-17. Another way you can alter your paycheck is to change your contributions to employer-sponsored retirement or medical expense accounts. As mentioned above, these are pre-tax contributions, so not oregon state income tax only do they help you save for the future, they also save you money on your taxes now. The standard deduction, which Oregon has, is a deduction that is available by default to all taxpayers who do not instead choose to file an itemized deduction. Once you’ve filed your tax return, all you have to do is wait for your refund to arrive.

• Oregon levies a progressive state income tax system with one of the highest top rates in the U.S., at 9.90%.
• While the personal income tax is based on a taxpayer’s ability to pay, Oregonians pay other taxes not connected to how much someone can afford to pay.
• With additional time to file your return, you may want to spend a few minutes reflecting on the tax system.
• Official websites use .gov A .gov website belongs to an official government organization in the United States.
• The two most popular tax software packages are H&R Block At Home, sold by the H&R Block tax preparation company, and TurboTax Federal & State, sold by the Intuit software company.
• The state has a complex and progressive individual income tax system with four tax brackets, a top marginal rate of 9.9 percent, and a personal exemption structured as a tax credit.

Gross wages for hourly employees

The Earned Income Tax Credit (EITC) is a significant tax credit in the United States, designed primarily to benefit working individuals and families with low to moderate income. As a refundable credit, the EITC not only reduces the amount of tax owed but can also https://www.facebook.com/BooksTimeInc result in a refund if the credit exceeds the taxpayer’s total tax liability. This makes the EITC a powerful tool for reducing poverty, incentivizing work, and providing financial support to those who need it most. The credit amount varies based on the taxpayer’s income, marital status, and number of qualifying children, with the intention of providing greater assistance to families with children.

Oregon Tax Credits

• Though Oregon tax law is no longer explicitly racist, it continues to entrench and even deepen racial disparities that are the result of past and present policy choices.
• The State of Oregon collects $6,498 in state and local tax collections per capita.
• Local governments levy property taxes, and these come in right around U.S. averages.
• Oregon assesses income tax at rates up to 9.9%, and doesn’t have a general sales tax.
• The average effective property tax rate is about average, though, ranking as the 26th-highest rate in the country.
• When you consider not just income taxes, but all the taxes collected by state and local governments, the tax structure turns upside-down.

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.

• The state of Oregon requires you to pay taxes if you’re a resident or nonresident that receives income from an Oregon source.
• Its property taxes are also below average when compared to other states.
• Many, or all, of the products featured on this page are from our advertising partners who compensate us when you take certain actions on our website or click to take an action on their website.
• The Personal Exemption, which is supported by the Oregon income tax, is an additional deduction you can take if you (and not someone else) are primarily responsible for your own living expenses.
• Capital gains in Oregon are subject to the normal personal income tax rates.

Itemized Deductions

Oregon’s tax system ranks 30th overall on the 2025 State Tax Competitiveness Index. To do this, simply file a new W-4 and write in the extra amount you’d like withheld. For example, say you want to withhold an additional $25 each month. Write $25 on the line of the W-4 that asks how much of an additional withholding you want to be taken from your paycheck. While this will result in slightly less money per paycheck, it could save you money come tax time. Taxpayers who are self-employed will have to pay the entire Social Security and Medicare contributions themselves.

Taxpayers Shoulder a Heavy Burden for Sports Stadium Subsidies

Beyond federal income taxes, your employer will also withhold Social Security and Medicare taxes from each of your paychecks. Social Security tax is withheld at 6.2% and Medicare tax at 1.45% of your wages. Your employer then matches those amounts, so the total contribution is double what you paid. If you earn wages in excess of $200,000 as a single filer, QuickBooks head of household or qualifying widow(er), these wages are subject to a 0.9% Medicare surtax. Married couples filing jointly pay this tax on wages that exceed $250,000, while married couples filing separately pay it on wages above the $125,000 threshold.