Oregon reaches 8.75% at $11,400 of taxable income. No other state asks a middle earner for as much income tax — and no other state with rates like these forgoes a sales tax entirely.
| Gross pay | — |
| Federal income tax | — |
| Social Security6.2% up to $184,500 | — |
| Medicare1.45%, no cap | — |
| State income tax | — |
| 401(k) contribution | — |
| Health and HSA | — |
Useful if you are comparing a job that pays monthly against one that pays every two weeks, or working out what a raise is worth per paycheck.
| Pay schedule | Gross | Take-home |
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Oregon's rates are 4.75%, 6.75%, 8.75% and 9.9%. The third of those begins at $11,400 of taxable income for a single filer, which means essentially every full-time worker in the state pays 8.75% on the bulk of their earnings.
That is the highest effective income tax burden on a middle income of any state in the country — higher than California, whose comparable rate at that income is 6%, and higher than New York, Minnesota or New Jersey. The 9.9% top band does not arrive until $125,000, but by then almost all the damage is done.
The standard deduction compounds it. At $2,910 for a single filer and $5,820 for a couple, it is among the smallest in the country, so Oregon taxable income sits very close to gross wages.
This is the trade, and it is a real one. Oregon levies no state or local sales tax. Residents of Washington and California regularly cross the border to make large purchases.
Whether the trade favours you depends entirely on your income and spending. For a lower earner who spends most of what they make, no sales tax is worth a great deal and the income tax bites less because of the brackets below $11,400. For a professional salary, the income tax cost substantially exceeds any plausible sales tax saving — which is why the Washington border is a genuine consideration for high earners in the Portland metro.
Washington sits directly across the Columbia River with no wage income tax at all. The commute is short and the tax difference at $150,000 of income is roughly twelve thousand dollars a year.
The Portland metro area levies additional income taxes beyond the state's. The Metro Supportive Housing Services tax applies to income above a threshold, and Multnomah County's Preschool for All tax applies at further rates above its own thresholds.
Stacked with Oregon's state rates, a high earner living in Multnomah County faces one of the highest combined state and local income tax rates anywhere in the United States, rivalling New York City and California. These local taxes are not modelled here; the figure shown is state only.
Oregon allows a limited subtraction for federal income tax paid, capped at a moderate amount and phased out at higher incomes. This calculator does not model it, so the Oregon figure shown reads slightly high for those who qualify.
Oregon also operates a surplus refund known as the kicker. When revenue exceeds forecasts by a set margin, the excess is returned to taxpayers as a credit on the following year's return. It arrives irregularly and unpredictably, and should be treated as an occasional rebate rather than something to plan around.
For a typical middle income, yes. The 8.75% band begins at $11,400 of taxable income and the standard deduction is only $2,910, so more of your income is taxed at a high rate than in any other state.
For lower earners who spend most of their income, often yes. For professional salaries the income tax cost exceeds any realistic sales tax saving, which is why the Washington border matters in the Portland metro.
No. The Metro Supportive Housing Services tax and Multnomah County's Preschool for All tax apply on top of the state figure shown.
A surplus refund. When state revenue exceeds forecasts by a set margin, the excess returns to taxpayers as a credit on the following year's return. It is irregular and not something to budget around.