Oregon Income Tax Calculator 2026

Oregon income tax brackets explained

Oregon has four rates in 2026: 4.75%, 6.75%, 8.75%, 9.90%. The brackets are narrow at the bottom — single filers reach 8.75% once taxable income passes $11,400 — and the 9.9% top rate starts at $125,000 (single) or $250,000 (joint and head of household).

In exchange, Oregon has no sales tax. The standard deduction is small ($2,900 single, $5,800 joint, $4,650 head of household), and each exemption gives a $260 credit rather than a deduction — but only if federal AGI is no more than $100,000 (single) or $200,000 (joint or head of household).

Worked example: $80,000 single filer

A single filer with $80,000 of wages subtracts the $2,900 standard deduction for Oregon taxable income of $77,100:

• Tax before credits: $6,427. After the $260 exemption credit: $6,167.
• Oregon also lets you subtract federal income tax paid, up to $8,750 in 2026 (phasing out at higher incomes). For someone in the 8.75% bracket who qualifies for the full subtraction, that is worth up to $766 — the calculator above does not include it.

Social Security, retirement and Oregon

Oregon does not tax Social Security or tier 1 Railroad Retirement benefits; any amount included in federal AGI is subtracted on the return. Pensions, 401(k) and IRA withdrawals are taxable at Oregon’s regular rates, which is a significant cost for retirees given the 8.75% rate on moderate incomes.

Which Oregon form to file

Oregon returns are due April 15. The form depends on your residency during the year:

• Form OR-40: full-year Oregon residents.
• Form OR-40-P: part-year residents, who report all income while a resident and Oregon-source income otherwise.
• Form OR-40-N: nonresidents with Oregon-source income — for example, Washington residents who commute to jobs in Oregon. Their Oregon wages are taxable even though Washington has no income tax.

Local income taxes in the Portland area

Residents of the Metro region and Multnomah County may owe two local income taxes on top of state tax. The Metro Supportive Housing Services tax is 1% of taxable income above 2026 thresholds of $128,000 (single) or $205,000 (joint). Multnomah County’s Preschool for All tax is 1.5% over $125,000 or $200,000, plus 1.5% more over $250,000 or $400,000, and that rate is scheduled to rise by 0.8% in 2028. Both are filed on separate returns with the City of Portland Revenue Division.