Oregon Income Tax Calculator 2026
See your Oregon state tax, effective rate, and take-home pay in 60 seconds.
Estimate only. Uses 2026 federal figures, Oregonstate figures (see sources below), and a standard-deduction federal calculation. Filing status “Head of household” uses the single column for Oregon. Your actual tax depends on credits, additional income, and adjustments.
Worked example: A single filer earning $85,000 in Oregon
Start with $85,000 of wages. After the $2,420 state standard deduction, running it up Oregon's brackets produces about $5,934 in state income tax — an effective state rate near 7%, with a 8.75% marginal rate. Federal income tax and FICA are calculated separately and shown in the calculator above.
Assumes a single filer taking the standard treatment. Figures are educational estimates.
How Oregon taxes income
Oregon uses a graduated income tax: your income is taxed in slices, with each slice taxed at a higher rate as you move up the brackets from 4.75% to 9.9%.
Oregon generally starts from your federal income, applies state-specific adjustments and deductions, and then runs the result up the brackets. Credits and exemptions can change the final number — confirm the current details with the Oregon Department of Revenue.
2026 rate structure
| Rate | Single — taxable income up to | MFJ — taxable income up to |
|---|---|---|
| 4.75% | $18,400 | $18,400 |
| 6.75% | $46,200 | $46,200 |
| 8.75% | $250,000 | $250,000 |
| 9.90% | and above | and above |
Retirement income & Social Security
Oregon generally taxes retirement income such as 401(k), IRA, and pension distributions, though it may offer exclusions, deductions, or credits for certain pension or retirement income and for older taxpayers. Confirm the current exclusions with the Oregon Department of Revenue.
Local taxes & reciprocity
The Portland metro area and Multnomah County levy additional local income taxes (e.g., the SHS and Preschool for All taxes) on higher earners.
Reciprocity: Oregon has no income tax reciprocity agreements. If you work across state lines, you generally file a non-resident return where you work and claim a credit to avoid double taxation.
Notable deductions, credits & other taxes
Deductions & credits
- Oregon standard deduction (about $2,420 single / $4,865 MFJ in this model — verify current amounts)
- Credit for income taxes paid to other states (for residents with out-of-state income)
- State versions of common credits — earned income, child/dependent care, and education credits — where offered
Capital gains: Oregon has no separate capital gains rate. Capital gains included in your federal AGI are taxed as ordinary income at Oregon's graduated rates.
Property tax: Property taxes in Oregon are assessed and collected locally, so effective rates vary widely by county and municipality. Check your county assessor or the Oregon Department of Revenue for local rates.
Oregon vs. neighboring states
Compared with its neighbors — California, Idaho, Nevada, Washington — Oregon's graduated rates up to 9.9% sit within the regional range. Effective rates depend heavily on income level, deductions, and local taxes. Note that Nevada and Washington have no income tax at all, which can matter for people living or working near the border.
Oregon state tax FAQs
What is the Oregon state income tax rate for 2026?
Oregon uses graduated brackets ranging from 4.75% to 9.9%, with higher rates applying only to income above each threshold.
Does Oregon tax retirement income or Social Security?
Social Security benefits are exempt from Oregon income tax. For other retirement income, Oregon generally taxes 401(k), IRA, and pension distributions, though exclusions may apply. Verify with the Oregon Department of Revenue.
How are capital gains taxed in Oregon?
Oregon has no separate capital gains rate. Capital gains included in your federal AGI are taxed as ordinary income at Oregon's graduated rates.
Is there a local or city income tax in Oregon?
The Portland metro area and Multnomah County levy additional local income taxes (e.g., the SHS and Preschool for All taxes) on higher earners.
Does Oregon have tax reciprocity with neighboring states?
Oregon has no income tax reciprocity agreements. If you work across state lines, you generally file a non-resident return where you work and claim a credit to avoid being taxed twice.
Sources & verification
Last verified June 12, 2026.