Quick Answer
Oregon's income tax rates range from 4.75% to 9.9% for 2026, making it the 4th highest in the US. A worker earning $75,000 pays about $4,425 in Oregon state tax annually — roughly $170 per paycheck. Oregon has no sales tax, so the state relies heavily on income taxes for revenue.
Best Answer
Sarah Chen, CPA
Workers earning between $40,000-$100,000 who want to understand their Oregon tax burden
Oregon's 2026 income tax rates
Oregon uses a progressive tax system with rates from 4.75% to 9.9%. Here's how much you'll pay based on your income:
Example: $75,000 salary in Oregon
Let's calculate the Oregon tax for someone earning $75,000 (single filer):
Total Oregon tax: $6,814 annually or $262 per biweekly paycheck
This doesn't include federal taxes — just Oregon's portion.
Why Oregon's rates are so high
Oregon ranks 4th highest for state income tax rates nationally. Here's why:
No sales tax: Oregon is one of only five states with no statewide sales tax. According to the Oregon Department of Revenue, income taxes provide about 85% of the state's General Fund revenue, compared to 35-40% in states with sales taxes.
High public spending: Oregon spends above the national average on education, social services, and infrastructure. The state's per-pupil education spending ranks 19th nationally at $12,300 per student.
Progressive structure: Oregon's top rate kicks in at relatively low income levels. The 9.9% rate applies to income over $26,900 for single filers — much lower than California ($1 million threshold) or New York ($25 million threshold for their top rates).
Key factors that affect your Oregon tax
What you should do
Check your withholding if you're new to Oregon or got a raise. Oregon withholding can be tricky because of the federal tax deduction. Use our paycheck calculator to see exactly how much Oregon takes from each paycheck and whether you need to adjust your W-4.
Key takeaway: Oregon's 4.75%-9.9% income tax rates rank among the highest nationally, but the state has no sales tax. A $75,000 earner pays about $262 per paycheck in Oregon taxes alone.
Key Takeaway: Oregon's progressive tax rates of 4.75%-9.9% make it the 4th highest-tax state, with a $75,000 earner paying $262 per paycheck in state taxes.
Oregon tax rates vs. neighboring states for 2026
| State | Lowest Rate | Highest Rate | Top Rate Threshold (Single) | Sales Tax |
|---|---|---|---|---|
| Oregon | 4.75% | 9.9% | $26,901 | 0% |
| Washington | 0% | 0% | N/A | 6.5% |
| California | 1% | 13.3% | $1,000,000 | 7.25% |
| Idaho | 1% | 5.8% | $12,760 | 6% |
| Nevada | 0% | 0% | N/A | 6.85% |
More Perspectives
Sarah Chen, CPA
Workers who moved to Oregon from another state and are shocked by their first paycheck
The Oregon tax shock is real
If you moved from a no-tax state like Texas or Washington, seeing 6-10% disappear from your paycheck for state taxes can be jarring. Here's what to expect:
Coming from no-tax states: Your take-home pay will drop significantly. A $60,000 salary that gave you $1,846 biweekly in Texas now gives you about $1,645 in Oregon — that's $201 less per paycheck.
Coming from low-tax states: Even moving from states like Colorado (4.4% flat rate) or Utah (4.85% flat rate), you'll notice the difference. Oregon's progressive rates mean higher earners feel the biggest impact.
But there are offsetting benefits
No sales tax: You'll save 6-10% on most purchases compared to states with sales tax. A $30,000 annual spending household saves roughly $1,800-$3,000 yearly.
Lower property taxes: Oregon's average effective property tax rate is 0.87%, compared to 1.07% nationally. On a $400,000 home, that's $800 less annually than the national average.
Better public services: Higher taxes fund better schools, parks, and infrastructure that can improve quality of life and property values.
Pro tip for new residents
If you moved mid-year, you'll need to file part-year resident returns in both states. Keep detailed records of your move date and income earned in each state. Oregon taxes all income earned while you were a resident, regardless of where the employer is based.
Key takeaway: Oregon's high income taxes are offset by no sales tax and lower property taxes, but the paycheck impact is immediate and noticeable for newcomers.
Key Takeaway: New Oregon residents see immediate paycheck reductions of $150-300 biweekly, but save money through no sales tax and lower property taxes.
Sarah Chen, CPA
Remote workers living in Oregon but working for out-of-state companies
Oregon taxes your income regardless of where your employer is
As an Oregon resident working remotely, you owe Oregon income tax on ALL your income — even if your employer is in a no-tax state like Texas or Nevada. Oregon follows the "resident state" rule: if you live here, you pay here.
Your employer might not withhold Oregon taxes. Many out-of-state employers aren't registered to withhold Oregon taxes, meaning you could owe a big bill at tax time. If your employer is based in Texas and doesn't withhold Oregon taxes from your $80,000 salary, you could owe Oregon about $5,600 when you file.
What to do about withholding
1. Ask your employer to withhold Oregon taxes. Provide them with Oregon Form WR (withholding registration). Many employers will accommodate this.
2. Make quarterly estimated payments. If your employer won't withhold, pay Oregon quarterly using Form 40ES. For an $80,000 salary, that's about $1,400 per quarter.
3. Increase federal withholding. As a backup, you can have extra federal taxes withheld (which you'll get refunded) and use that refund to pay Oregon.
Multi-state complications
If your employer withholds taxes for their state (like California), you'll file as an Oregon resident and non-resident of the other state. Oregon gives you credit for taxes paid to other states, but since Oregon's rates are higher, you'll usually owe Oregon the difference.
Example: You live in Oregon, work remotely for a California company earning $70,000. California withholds $2,100 (3% rate), but Oregon wants $4,950 (about 7% effective rate). You owe Oregon an additional $2,850.
Key takeaway: Oregon resident remote workers owe Oregon taxes on all income regardless of employer location, often requiring quarterly payments or special withholding arrangements.
Key Takeaway: Remote workers in Oregon owe state taxes on all income regardless of employer location and often need to make quarterly estimated payments.
Sources
- IRS Publication 505 — Tax Withholding and Estimated Tax
- Oregon Department of Revenue — Oregon Income Tax Rates and Tables
Related Questions
Reviewed by Sarah Chen, CPA on February 28, 2026
This content is for educational purposes only and is not a substitute for professional tax advice. Consult a qualified tax professional for advice specific to your situation.