How Oregon Taxes Your Paycheck
Oregon has one of the highest effective income tax burdens in the country for middle-income wage earners. The 9.9% top rate kicks in at $125,000 of taxable income for single filers — and the 8.75% bracket starts at about $11,000, meaning even modest wage earners pay a meaningful state tax. A single filer earning $80,000 in 2026 pays about $6,446 in state tax — roughly 8% of gross.
Brackets compress aggressively. Oregon's four brackets (4.75%, 6.75%, 8.75%, 9.9%) push most full-time workers into the 8.75% range almost immediately. The progressive structure exists, but functionally, anyone earning above ~$11,000 of taxable income is paying near-top rates on the bulk of their income. The math is closer to a near-flat 8.75% than a progressive schedule.
The trade-off is no sales tax. Oregon is one of five states with no statewide sales tax. The income tax burden is high; the sales tax burden is zero. For low-income households, the trade often nets out roughly even with a moderate-tax state. For higher earners, Oregon's structure is meaningfully worse — high income tax, no offsetting sales-tax break.
Statewide transit tax. Oregon levies a 0.1% statewide transit tax on wages, on top of the income tax. The TriMet (Portland metro) and Lane Transit (Eugene) districts have additional employer transit taxes — paid by the employer rather than withheld from wages.
Paid Leave Oregon is mandatory. Oregon's PFML program took effect in 2023. The combined contribution is 1.0% of wages on the SSA wage base; the employee share is 60% of that — about $384/yr at $80,000. Smaller employers (under 25 employees) can opt out of the employer share.
Multnomah County adds a meaningful layer for Portland-area high earners. Most Oregon cities don't levy income tax. But Multnomah County (Portland) has added a Preschool for All tax (1.5% above $125K single) and a Metro Supportive Housing tax (1% above $125K single) since 2021. A Portland-metro single earner above $125K can face combined state-and-local rates approaching 12.5% on income above the threshold. Outside Portland-metro, the state tax line is the entire wage-tax bill.
Property tax is moderate, with strong caps. Oregon's effective property tax rate (about 0.93%) is below the national average. Measure 50 (passed 1997) caps assessed value increases at 3% per year, producing large gaps between long-time homeowners and recent buyers — similar in spirit to California's Prop 13.
Oregon's economy spans tech (Intel's Hillsboro fabs, Nike, a growing software cluster), forestry, agriculture (especially the Willamette Valley), and a strong outdoor-recreation industry. Portland anchors most of the state's high-skill employment. The high state tax burden is a real factor for anyone moving to Oregon for a tech salary — the no-sales-tax offset doesn't outweigh the income tax line for most middle-and-higher earners.
Top Cities in Oregon
The largest population centers in Oregon — and where local tax rates may stack on top of state withholding:
- Portland — 631,000 residents
- Salem — 178,000 residents
- Eugene — 178,000 residents
How Oregon Compares to Neighboring States
Single-filer take-home on a $75,000 annual salary in 2026, federal + state income tax + FICA only:
| State | Take-Home | vs. Oregon |
|---|---|---|
| Oregon (here) | $55,584 | — |
| Washington | $61,593 | +$6,009 |
| Idaho | $58,413 | +$2,829 |
| Nevada | $61,593 | +$6,009 |
| California | $58,652 | +$3,068 |
Take-home reflects single filer, no pre-tax deductions; SDI/PFML and local taxes excluded for an apples-to-apples comparison.
Frequently Asked Questions
What's the Oregon state income tax rate?
Oregon has progressive income tax brackets ranging from 4.75% to 9.9%. Most middle-income earners hit the middle brackets; the top rate applies only above $125,000.
How much is taken out of my paycheck in Oregon?
For a single filer earning $75,000 in Oregon (2026), expect roughly $7,670 in federal income tax, $5,738 in FICA, and $6,009 in Oregon state tax — leaving about $55,584 take-home (25.9% effective tax rate). SDI/PFML and local taxes (if any) come out of that as well.
Do Oregon cities tax wages on top of state tax?
The Portland metro area imposes additional taxes — including the Multnomah County Preschool For All tax (1.5–3% on high earners) and the Metro Supportive Housing tax (1% on incomes over $125K single/$200K joint).
Is the Oregon median household income enough to live comfortably?
The 2023 ACS reported a Oregon median household income of about $85,200. Whether that's "comfortable" depends heavily on city — Portland cost of living can differ substantially from rural areas. Use the calculator above to model your specific salary and deductions.
How does this Oregon paycheck calculator work?
We calculate your annualized gross pay based on the pay frequency you select, then apply the 2025 or 2026 IRS percentage method for federal income tax, the Oregon state tax schedule (if any), Social Security, and Medicare. Pre-tax deductions like 401(k) and Section 125 health premiums reduce your taxable base before withholding is computed. You can switch between salary and hourly modes; hourly mode applies time-and-a-half to hours over 40/week prorated by pay period.