Oregon Department of Revenue : Make a payment : State of Oregon

There are also postings on social media from confused taxpayers who received the letters. Greenberg and his wife were surprised after receiving two demand letters from the city titled “Notice of Debt.” The letters claimed the Portland couple owed the Supportive Housing Services tax and Preschool for All tax for 2023. Greenberg said they had already paid the taxes through employer withholdings, and they had records to prove it. For the purposes of penalty calculations, unpaid tax is your tax liability reduced by any payment of tax made before the original due date and any credit against tax that is claimed on the return.

Oregon Tax Tables 2022 – Tax Rates and Thresholds in Oregon

Instead, the state generates revenue with a statewide income tax of 4.75% to 9.9%, ranking among the highest in the nation. Local governments levy property taxes, and these come in right around U.S. averages. Much like other State and Federal tax programs, https://www.bookstime.com/articles/what-is-a-bookkeeper the Supportive Housing Services and Preschool For All programs require certain taxpayers to prepay their taxes throughout the year. Quarterly prepayment requirements can help taxpayers avoid receiving large bills when they file their tax return.

• Generally, you’re allowed to take a deduction for real estate taxes you’ve paid, up to $10,000 ($5,000 if married filing separately).
• Form OR-40-P filers will need to multiply the tax by their Oregon percentage on their return.
• Known as direct File, the public option guides users by asking a series of questions.
• ​In most cases, you must make estimated tax payments if you expect your tax after credits and withholding will be $1,000 or more, before you subtract any prior year refund you applied to your current year’s tax.
• Benefits of e-Filing your Oregon tax return include instant submission, error checking, and faster refund response times.
• You may be charged a service fee by the service provider if you choose this payment option.

Oregon Estate Tax Rates

If you have qualifying income under $30,000 and dependents under the age of 5, you may qualify for the Oregon Kids Credit. If you are married and filing separately, you won’t qualify for this credit. You can deduct only the amount that’s equal to the gambling winnings you reported for the current tax year.

Oregon Paycheck Calculator

Oregon does not have a state sales tax and does not levy local sales taxes. Oregon’s tax system ranks 24th overall on our 2023 State Business Tax Climate Index. Oregon state tax can’t get any better when it comes to purchasing goods and services.

• Under Oregon law, we only issue tax refunds to taxpayers after a claim for refund is submitted and validated.
• Oregon Capital Chronicle focuses on deep and useful reporting on Oregon state government, politics and policy.
• You can learn more about how the Oregon income tax compares to other states’ income taxes by visiting our map of income taxes by state.
• For non-residents, Multnomah County taxes only your income from Multnomah County sources.
• These taxes are not included on your Oregon tax return and must be filed with and paid to the City of Portland Revenue Division.
• For single filers, this is a 1.5% tax on income above $125,000 and 3% on income above $250,000.

Because of the inherently local nature of property tax collections in Oregon, rates vary significantly between counties. Those with an Oregon 529 College Savings Plan had a carry forward option available until December 31, 2019, and can still carry forward any unused subtraction before that date until 2023. You can take certain deductions that aren’t mentioned elsewhere on your tax return. Some examples include gambling losses and claim of right income repayments, which is income you paid in error but reported in a previous year. Generally, you’re allowed to take a deduction for real estate taxes you’ve paid, up to $10,000 ($5,000 if married filing separately).

Oregon taxpayers might see another kicker in 2026, economists say

If you want to cut taxes in Oregon, a simple majority of the Oregon legislature suffices. If you want to create a new tax giveaway for the well-off or a new tax subsidy for corporations, again, a simple majority is enough. Bankrate has partnerships with issuers including, but not limited to, American Express, Bank of America, Capital One, Chase, Citi and Discover. You can deduct the amount of these expenses that exceeds 7.5% of your federal adjusted gross income (AGI).

• The IRS’s Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) programs offer free basic tax return preparation to qualified individuals.
• 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.
• Both the IRS and Department of Revenue launched online tools allowing people to prepare and file returns directly with the agencies.
• Oregon does not collect sales taxes of any kind, at the state or local level.
• For the purposes of penalty calculations, unpaid tax is your tax liability reduced by any payment of tax made before the original due date and any credit against tax that is claimed on the return.
• That means capital gains can be taxed at a rate as high as 9.9%, depending on your total income.

When you add up all state and local taxes, Oregon’s tax structure is regressive – meaning Oregonians with low-incomes pay a higher share of their income in taxes than the richest Oregonians. Oregon’s high income taxes are partially due to the fact that Oregon has no state sales tax. Tax brackets for earnings under under $125,000 are indexed for oregon state income tax inflation and adjusted yearly, while tax brackets over $125,000 are only changed explicitly by statute. To help offset high state income taxes, Oregon taxpayers can deduct up to $6,100 of Federal income tax from their Oregon taxable income. Oregon was one of the first Western states to adopt a state income tax, enacting its current tax in 1930.

Without congressional action, most taxpayers will see a notable tax increase relative to current policy in 2026. It is not only possible to imagine a better tax filing system in Oregon, but also to realize it. Getting there requires the federal and state governments to each take decisive steps in that direction. In 1862, not long after joining the Union, Oregon enacted a tax on people of color. If you were Black, mixed-race, Hawaiian, or Chinese, you had to pay a tax not levied on white Oregonians. In recent years, Congress has been tossing out tax breaks for the rich and corporations like confetti at a parade.

1 – Oregon Standard Deduction

Late penalties will also be applied if an extension has been requested and the return is filed after the extension due date. The Revenue Division may discuss payment plan options and give approval to the taxpayer, provided the options meet the criteria established below. State economists Mark McMullen, left, and Josh Lehner answer questions from Oregon lawmakers in 2015. McMullen gave his final economic and revenue forecast to a legislative committee on Wednesday. At the end of 2025, the individual tax provisions in the Tax Cuts and Jobs Act (TCJA) expire all at once.