Similar to the personal income tax, businesses must file a yearly tax return and are allowed deductions such as wages paid, cost of goods sold, and other qualifying business expenses. For tax year 2024, standard deduction amounts are $2,745 for single filers or married filing separately, $5,495 for married filing jointly or qualifying surviving spouse, and $4,420 for head of household. Taxpayers can itemize deductions if eligible expenses exceed the standard amount. Common itemized deductions include mortgage interest, property taxes, and charitable contributions. Oregon has a graduated state individual income tax, with rates ranging from 4.75 percent to 9.9 percent. There are also jurisdictions that collect local income taxes, with high taxes in the Portland Metro area.

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We make it simple and seamless for our customers to take advantage of these hard-to-access tax-advantaged structures. With Valur, you can build your wealth more efficiently at less than half the cost of competitors. Our experts can help you identify the most efficient way to reduce your capital gains taxes. The amount of tax you owe each year is calculated based on your gross income, which includes wages, interest, dividends, and other earnings.

• At VisaVerge, we understand that the journey of immigration and travel is more than just a process; it’s a deeply personal experience that shapes futures and fulfills dreams.
• Oregon has a progressive income tax that ranks among the highest in the nation.
• The seller may accept this certificate and exempt the transaction from their state’s sales/use/transaction tax, but they aren’t required to accept it.
• To calculate your income tax, you need to determine which bracket your income falls into and apply the corresponding tax rate.
• Because there were less than 1,200 total qualifying hours worked in Oregon, the nonpassive income from Partnership B doesn’t qualify for the reduced tax rate.
• That’s money that your employer removes from your pay before taxes are applied.

Oregon Income Tax Rates and Brackets

Taxpayers who are blind or over 65 get an additional standard deduction of $1,200 for single filers and $1,000 per qualifying person for those filing a joint return. Statewide, the average effective property tax rate (annual property taxes as a percentage of home value) is 0.86%. Because of the inherently local nature of property tax collections in Oregon, oregon income tax rate rates vary significantly between counties. There are 1,200 local taxing districts in Oregon, with property tax rates varying between each one. Tax collections are managed primarily by the 36 counties in Oregon, which assess property and calculate taxes owed.

Oregon State Corporate Income Tax 2025

S-Corporations and other flow-through entities aren’t subject to the double taxation of revenue imposed on a C-Corp, because they aren’t required to pay corporate taxes on their revenue. However, the owners or members of the corporation must report their share of the corporation’s income on their personal tax returns and pay Oregon and federal income tax. The requirement to file an Oregon income tax return depends on residency status and income thresholds. Full-year residents must file if their gross income exceeds a certain amount based on their filing status. Part-year residents must file if their income from all sources while a resident, combined with Oregon-sourced income earned as a nonresident, surpasses the basic standard deduction. Meanwhile, the greater Portland area’s Metro Supportive Housing Services Tax is a 1% levy on taxable income above $125,000 for individuals and $200,000 for married couples filing jointly.

Income Tax Brackets, Rates, Income Ranges, and Estimated Taxes Due

Remember that Oregon may have very different deduction laws from the Federal Income Tax, so you may have to write a whole new list of deductions for your Oregon income tax return. Oregon offers a standard deduction and a personal exemption credit. The personal exemption is $249 each per taxpayer and eligible dependent. In Oregon, registered domestic partners, or RDPs, are subject to the same tax statutes and regulations that apply to married filers. Just like a married couple, domestic partners may file jointly or separately. As an RDP, you can’t file using the single filing status on your Oregon return.

• After deductions and credits, the average effective tax rate is about 6.0% of adjusted gross income.
• Oregon’s state income tax rates for 2025 are structured into four brackets, with rates that increase as income rises.
• This structure bases tax contributions on an individual’s ability to pay, taxing different portions of income at varying rates corresponding to specific income brackets.
• An Oregon estate tax return is required if the gross estate exceeds $1,000,000.
• It’s important to note that Oregon does not tax Social Security benefits.

Oregon Standard Deductions & Personal Exemption Amounts

The average effective property tax rate is just below average, however, ranking 25th in the country. 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.

Oregon has four marginal tax brackets, ranging from 4.75% (the lowest Oregon net sales tax bracket) to 9.9% (the highest Oregon tax bracket). Each marginal rate only applies to earnings within the applicable marginal tax bracket. To calculate their total tax, they need to add up the taxes owed for each bracket. Employers and payroll departments should ensure that withholding reflects the correct rates and brackets for 2025. New residents should update their withholding forms to avoid surprises at tax time.

Oregon taxes on alcohol and tobacco

Oregon may also require nonprofits to file additional paperwork with the Oregon Department of Revenue to gain exemption from Oregon’s corporate taxes. While Oregon’s personal income tax is progressive, the overall state and local tax system, considering all taxes, can be less progressive. Other taxes, such as property and excise taxes on goods like gasoline, alcohol, and tobacco, may disproportionately affect lower-income households. High property taxes levied not only on land but also on buildings and structures can discourage investment in infrastructure, which businesses would have to pay additional tax on.

state tax rates

Prepare and e-File your Oregon Income Taxes here on eFile.com together with your Federal Income Tax Return. Per IRS/State regulation – not eFile.com – an Oregon state tax return can only be e-Filed together with an IRS tax return. Instruction how to only prepare an Oregon state return on eFile.com and then download, print sign Suspense Account and mail it in.