Use Beem to file your state tax returns online at the best prices even if you have multiple W-2s. Oregon‘s tax system ranks 30th overall on the 2025 State Tax Competitiveness Index. Oregon forgoes a sales tax, but doubles down on other forms of taxation. 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. 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.

Corporate Tax Rates Around the World, 2024

Oregon does not collect sales taxes of any kind, at the state or local level. A financial advisor can help you understand how taxes fit into your overall financial goals. If you’re ready to find an advisor who can help you achieve your financial goals, get started now. Qualifying deductions might include an itemized deduction, the Oregon standard deduction, exemptions for dependants, business expenses, etc.

Oregon Sales Tax

The state applies a ratio of the elected natural resource credit to the total estate times the actual tax paid. Oregon collects a state income tax at a maximum marginal tax rate of %, spread across tax brackets. Like the Federal Income Tax, Oregon’s income tax allows couples filing jointly to pay a lower overall rate on their combined income with wider tax brackets for joint filers. Oregon’s state and local governments receiverevenue from numerous sources, including federaltransfer payments; tuition, hospital and othercharges; Lottery revenue; and taxes. Of all thesesources, half the state’s total revenue is fromtaxation.

Federal Income Tax Tables in 2024

The corporate excise and income tax is the secondlargest source of state tax revenue. This isexpected to account for 11% of the state’s GeneralFund for the 2023–25 biennium. The corporate taxrates are 6.6% and 7.6% of taxable business income. The Income tax rates and personal allowances in Oregon are updated annually with new tax tables published for Resident and Non-resident taxpayers. The Tax tables below include the tax rates, thresholds and allowances included in the Oregon Tax Calculator 2024.

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. Keep in mind that this Accounting for Churches estimator assumes all income is from wages, assumes the standard deduction, and does not account for tax credits. Facts & Figures serves as a one-stop state tax data resource that compares all 50 states on over 40 measures of tax rates, collections, burdens, and more.

• If Bill and Jane employ option one, they’ll use the base exemption.
• Oregon’s state and local governments receiverevenue from numerous sources, including federaltransfer payments; tuition, hospital and othercharges; Lottery revenue; and taxes.
• The only time the estate would get full credit is if the Oregon and total adjusted gross estate values were equal.
• Likewise, you can take an additional dependent exemption for each qualifying dependent (like a child or family member), who you financially support.
• The standard deduction for a Head of Household Filer in Oregon for 2024 is $ 2,745.00.
• In Oregon, different tax brackets are applicable to different filing types.

Oregon Tax Credits

• The new Oregon child tax credit, known as the “Oregon Kid’s Credit,” is worth up to $1,000 and is completely refundable.
• While there are many ways to show how much state governments collect in taxes, the Index evaluates how well states structure their tax systems and provides a road map for improvement.
• In this case only electing the natural resource credit on assets that heirs know won’t be sold or disposed of is the best choice.
• If compiling and filing your taxes is an area you struggle with, a financial advisor can help.
• Assume that Bill owns land in Oregon worth exactly $1 million, and doesn’t qualify for the natural resources credit.
• This means that when you make purchases in Oregon, you won’t be charged a state-level sales tax on most goods and services.

An election may be made to increase the basis of the land to its fair market value at the time of the decedent’s death. However, if the election is made, balance sheet interest must be paid on the deferred estate tax. How many times has a family had to sell the farm because of estate taxes?

• Assume that farm property qualified for a $400,000 credit and is disposed of two years after death.
• For most states in the West, the applicable Farm Credit Bank is Co-Bank with an applicable interest rate of 5.30% for 2024.
• While most in-depth tax software charges a fee, there are several free options available through the states, and simple versions are also offered free of charge by most tax software companies.
• Other tax laws or Oregon Department of Revenue rules may apply to your specific situation.
• 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).
• Consumers legally wagered more than $100 billion on sporting contests in 2023, creating more than $1.8 billion in state revenue.

How much of my paycheck goes to taxes in Oregon?

Due to legislative decisions, Oregon state income tax rates and rules can change over time. Therefore, it is crucial to stay informed about any potential changes. 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 oregon income tax below.

If you need more clarification about the reasons behind a significant increase, seeking guidance from a tax professional or using trusted tax software can provide clarity. 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. This method ensures that individuals pay varying rates on different income parts. 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.