Oregon State Tax Guide: Filing Made Easy

This tax is progressive, which means the tax rate you pay — the percentage of each additional dollar that goes to the government — increases as your income increases. For individuals, the income tax rates on ordinary income (as distinguished from capital gains) start at 10% and increase up to 37% as your income tax bracket increases. Oregon’s state income tax rates and brackets for 2025 remain a central concern for residents, newcomers, and anyone considering a move to the state. With the 2025 tax year approaching, it’s important to understand what has changed, who is affected, and what actions are required for both current and future taxpayers. Understanding Oregon’s tax system is vital for accurate and timely tax filing.

Common mistakes to avoid when filing Oregon state income tax

The fast, streamlined online process makes filing simple, so you can avoid penalties and get extra time to prepare. A Voluntary Disclosure Program allows taxpayers to settle unpaid bookkeeping liabilities while reducing penalties, encouraging compliance before enforcement actions escalate. Oregon’s tax system has unique rules that differ from federal regulations and those of other states. Whether you’re a resident, business owner, or property holder, understanding these requirements is essential to avoid penalties and take advantage of potential savings.

• Meanwhile, joint filers in the same income bracket can receive up to $360 when contributing at least $1,440.
• As of 2021, Oregon has a capital gains tax rate of 9.9% for individuals whose taxable income exceeds $125,000 for single filers or $250,000 for joint filers.
• This means that individuals in Oregon do not benefit from a separate lower tax rate on long-term capital gains like at the federal level.
• It is important to note that Oregon’s capital gains tax is separate from the federal capital gains tax rate, which also has different brackets based on income level.
• Once you’ve filed your tax return, all you have to do is wait for your refund to arrive.
• Oregon stands out among U.S. states for its unique tax structure, notably the absence of a statewide sales tax.
• Oregon taxes capital gains at the same rate as other types of income, with the top marginal rate currently at 9.9%.

Property Taxes

You are considered an Oregon resident if you lived in Oregon for most of the last tax year, specifically 200 days or more. Income from business activities, including self-employment, and rental income are also taxable. While many types of retirement income, such as pensions and annuities, are taxable, Oregon law exempts Social Security and Railroad Retirement Board benefits from state income tax. Get an instant 6-month extension in just 5 minutes, with no IRS explanation needed.

• This blog will help you get answers to these questions and provide insights into Oregon’s standard deduction, tax brackets, and sales tax.
• Oregon’s property tax system is influenced by “tax compression” mechanisms, specifically Measures 5 and 50, which cap the growth of assessed value and limit the amount of tax collected.
• It’s important to note that withholding and estimated tax payments throughout 2025 should reflect these rates to avoid underpayment penalties.
• Check the “Extension Filed” box when you file your personal income tax return(s) and attach a copy of your federal extension or verification of your Oregon extension payment with your return.
• You can save time and money by electronically filing your Oregon income tax directly with the .
• However, Oregon’s tax system differs from others because different portions of one’s income are taxed at various rates of the specific tax brackets they fall into.

Overview: SHS and PFA Personal Income Tax

You will be assessed monthly interest on any unpaid tax until the balance due is paid in full. The current interest rate can be found in our Tax Administration Policy – Personal Income Tax Interest Rates on Tax Due and Refunds. Failure to pay the personal income taxes by the original due date will result in late payment penalties and interest.

Failure to pay property taxes results in delinquency, with interest accruing monthly. If taxes remain unpaid for three years, the county may initiate foreclosure proceedings. Oregon imposes an estate tax on estates valued over $1 million, with rates ranging from 10% to 16%.

• For 2025, the standard deductions are $2,745 for single filers, $5,495 for married filing jointly, and $4,420 for head of household.
• If you do not meet the criteria listed above, you are not required to file a Metro SHS Personal Income Tax return.
• The most common additions are for income taxes paid to other states and interest income from the government bonds of other states.
• SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you.

However, if your employer has withheld the taxes from your wages, you will be required to file a personal income tax return with the Revenue Division in order to receive a refund of the taxes withheld. Property taxes in Oregon are levied at the local level, primarily by counties, cities, school districts, and other special districts, rather than by the state itself. Consequently, there is no single statewide property tax percentage; rates vary significantly depending on the specific location.

Residency Status: Full-Year and Part-Year/Non-Resident Filers

Nonresidents earning income from Oregon sources, such as wages or property income, must also file if that income exceeds the basic standard deduction. Even if income thresholds are not met, filing may be necessary to claim a refund of Oregon tax withheld. Oregon generally requires taxpayers to use the same filing status as their federal return, with an exception for married persons where one spouse is an Oregon resident and the other is a nonresident.

Portland has the highest combined local income tax rate in the nation (4 percent), adding an extra layer of tax burden for residents of the state’s largest city. Taxable income is determined after accounting for various deductions and credits. For instance, standard deductions for Debt to Asset Ratio 2024 are $2,745 for single filers and $5,495 for those married filing jointly.

• Let’s consider an individual who has a taxable income of $350,000 in Oregon.
• This corporate excise tax is a significant revenue source for the state’s General Fund, distinct from personal income tax obligations.
• Remember, it’s important to consult with a tax professional or financial advisor before implementing any tax planning strategies to ensure they are suitable for your specific situation.
• Your return payment due date is always the original due date of the return, which is typically April 15th.
• Valur is not a law firm or an accounting firm, we do not provide legal or tax advice, and we are not a substitute for an attorney or an accountant.
• A financial advisor can help you understand how taxes fit into your overall financial goals.
• The state and each county assessor determine the value of property in each county.

Nonresidents earning wages from Oregon employers or deriving income from rental properties, businesses, or services in the state must file Form OR-40-N. The return(s) you are required to file will depend on your residency status within the jurisdictions. Each Portland resident age 18 and older that earns income above the federal poverty level and has $1,000 or more income is required to file and pay the Arts Tax. Visit our Arts Tax page for more information about the filing oregon income tax rate and payment requirements.

If you are a resident of California, Nevada and would like to make a request regarding your information, please fill out the form below. See the help of a professional bookkeeper or accountant to help you make an inform decision. Upwardli is the program manager of the Beem Card, not an FDIC-insured bank. Lines of credit and deposit product provided by Cross River Bank, Member FDIC.