Oregon Tax Brackets
How to read this: Only the income within each bracket is taxed at that rate. Your total tax is the sum across brackets.
| Income Range | Tax Rate |
|---|---|
| $0 - $4,550 | 4.75% |
| $4,550 - $11,400 | 6.75% |
| $11,400 - $125,000 | 8.75% |
| $125,000+ | 9.90% |
Brackets shown for single filers. Married filing jointly brackets may differ. Use the calculator above to see your specific situation.
Key Facts That Affect Your Take-Home Pay
- Oregon uses a progressive income tax system with four brackets, starting at 4.75% for the first $4,050 of income (single) or $8,100 (married) and escalating to a top rate of 9.9% for income above $125,000 (single) or $250,000 (married), making Oregon's bracket structure relatively simple but with high rates across all brackets.
- Oregon's progressive brackets have a relatively high starting rate (4.75%) compared to many other progressive states that start at 1%-3%, meaning even lower earners pay a higher percentage in Oregon. For a $100,000 earner, income is taxed across multiple brackets creating an effective rate around 7%-8.75%, with most income taxed at the higher brackets.
- Oregon does not impose income taxes beyond the state rate, meaning consistent tax calculations regardless of work location. All Oregon residents have the same income tax structure—only the state progressive brackets apply.
Common Mistakes People Make
Misconception: 'Progressive tax means I'll pay the top 9.9% on all my income in Oregon.' Reality: Oregon's progressive system starts at 4.75% for the first $4,050-$8,100 of income (depending on filing status), and most middle-income earners pay effective rates around 6%-8%, not 9.9%. The 9.9% rate only applies to income above $125,000 (single) or $250,000 (married). Someone earning $100,000 pays an effective rate around 7%-8.75% (~ $7,000-$8,750 annually).
Misconception: 'Oregon has no sales tax, so I'll save money overall.' Reality: While Oregon has no sales tax (a significant advantage for spenders), the state relies heavily on income tax with high rates (4.75%-9.9%) to compensate. A high earner in Oregon pays up to 9.9% income tax, which is among the higher rates in the nation. Someone earning $100,000 might pay $7,000-$8,750 annually in Oregon income tax, while the same earner in a flat-tax state like Pennsylvania would pay $3,070 (3.07% flat, though PA may have local EIT). The lack of sales tax benefits big spenders, but high earners may still pay more in income tax than in lower-tax states.
Misconception: 'Oregon's tax structure is the same as other states with no sales tax.' Reality: Oregon is one of only five states with no sales tax (along with Alaska, Delaware, Montana, and New Hampshire). This creates a unique revenue model where Oregon relies heavily on income tax (progressively higher rates up to 9.9%) rather than sales tax. Unlike zero-income-tax states like Texas or Florida that rely on sales/property taxes, Oregon taxes income progressively while exempting sales transactions from taxation Big spenders benefit from no sales tax, but high earners pay high income tax rates.
One Thing to Know
Oregon is one of only five states with no sales tax, which benefits big spenders, but the state compensates with high income tax rates (starting at 4.75%, topping out at 9.9%). Many people moving to Oregon for the 'no sales tax' benefit are surprised to find their income tax burden is actually higher than in many sales-tax states.
Important Notes
These calculations are estimates based on current tax law. Your actual take-home pay varies based on:
- Pre-tax deductions (401(k), health insurance, HSA, etc.)
- Your W-4 withholding elections
- Additional income or deductions at tax time
- Individual circumstances and tax situations
Tax rates are subject to change. Federal and state tax laws may be updated annually. This is not tax advice. For personalized help, consult a tax professional familiar with Oregon tax laws.