Comprehensive statutory analysis of Oregon individual income tax rates, Department of Revenue filing forms, extension guidelines, telecommuting sourcing rules, and pass-through entity tax provisions.
Primary Resident FormForm OR-40 (Individual Income Tax Return - Full Year Resident)
Nonresident FormForm OR-40-N / OR-40-P (Nonresident and Part-Year Resident Return)
Convenience of Employer RuleNo
Reciprocity AgreementsNone
Community Property StateCommon Law
State Estate/Inheritance TaxYes (Separate State Tax)
QSBS IRC § 1202 ConformityNo Conformity
Marginal Rate Ladder: Oregon
Source: Tax Foundation — State Individual Income Tax Rates and Brackets, 2026 (retrieved 2026-08-09). Ranks Oregon against all 51 jurisdictions.
2026 Legislative & Statutory Highlights
Oregon levies a steep 4-bracket progressive tax with a top marginal rate of 9.90% on taxable income over $125,000 ($250,000 married). In the Portland metropolitan area, residents and workers face additional surtaxes: the Metro Supportive Housing Services tax (1.0%) and the Multnomah County Preschool for All tax (up to 3.0%), pushing the combined top marginal rate to an eye-watering 13.90%. Oregon has zero state general sales tax.
Oregon operates a graduated personal income tax schedule with marginal brackets reaching up to 9.9%. Tax parameters are indexed annually or enacted through state legislative sessions. Taxpayers should ensure that adjustments for federal bonus depreciation, Section 179 expensing, and Net Operating Loss (NOL) carryforwards follow Oregon's specific rolling or static Internal Revenue Code conformity date.
Filing Forms, Deadlines & Extension Guidelines
Full-Year Resident ReturnForm OR-40 (Individual Income Tax Return - Full Year Resident)
Statutory Filing Calendar & Extension Provisions:Automatic 6-month extension to October 15 if federal Form 4868 granted, provided payment is made by April 15.
Oregon taxes residents on all income. Nonresidents working for Oregon employers are taxed strictly on days physically present in Oregon. Oregon does not apply a convenience-of-the-employer rule.
Cross-Border Tax Credits:If you are an Oregon resident earning wages in another state that also levies income tax, Oregon generally permits a resident credit for taxes paid to other jurisdictions (subject to statutory percentage limitations) to avoid unconstitutional double taxation.
Pass-Through Entity (PTE) Tax & Small Business Rules
Oregon enacted an elective Pass-Through Entity Tax (SB 1524) allowing partnerships and S-corps to pay tax at 9.0% (and 9.9% over $250k) at the entity level to bypass federal SALT limits.
Estate & Inheritance Tax
Oregon enforces the nation's lowest state estate tax exemption threshold at just $1,000,000, with rates starting at 10% and graduating to 16%.
Local & County Taxes
Portland Metro and Multnomah County levy localized personal income taxes (up to 4.0% combined) for high earners.
Worked Tax Example: $120,000 W-2 Earner in Oregon
A single filer in Portland earning $120,000 pays approximately $9,120 in Oregon state income tax, an effective rate of 7.60% (plus potential local Metro and Preschool taxes).
Gross W-2 Wages$120,000
Est. State Tax$9,120
Effective State Rate7.60%
Calculate Your 2026 Oregon Tax Liability
Enter your taxable income, filing status, and municipal details below to calculate your customized state tax liability and print your executive summary.
Structure
graduated
Top rate
9.9%
State tax
$6,712
Eff. rate (state+local)
8.4%
Graduated system, top rate 9.90%, plus a 1% surcharge on income above roughly $1M (the "kicker" relates to revenue, separate). Oregon does NOT allow the federal itemized deduction of income tax. OR does NOT conform to federal QSBS. Estate tax applies. Verify thresholds against OR DOR.
⚠ Some figures for this state are not yet fully verified — confirm with the state Department of Revenue before relying on them.
Official Executive Tax Dossier · Form 1040 Statutory Mapping
2026 Executive Oregon State Tax Audit Summary
STATUTORY SEAL:FT-2026-IRS-6C538721IRS Rev. Proc. 2025-32 Verified
Gross Income$80,000
Taxable Income$80,000
Total Combined Tax$6,712
Effective Total Rate8.4%
Statutory Governing Authority: Oregon Department of Revenue Statutory Tax Code · Top Marginal Rate: 9.9% · Tax Foundation 2026 State Tax Rates & Brackets Report
Not tax, legal, or financial advice
FiscTalk provides general educational information from public sources. Your tax results depend on the full set of facts, your filing history, and the jurisdiction-specific rules that shift yearly. Before filing or making decisions, consult a licensed CPA, EA, or attorney. FiscTalk is not a fiduciary and is not affiliated with the IRS or any state agency.
Does Oregon have a state personal income tax in 2026?
Yes. Oregon operates a graduated personal income tax schedule with marginal brackets reaching up to 9.9%. Taxpayers must file an annual return if gross income exceeds statutory filing thresholds.
What is the 2026 individual income tax filing deadline for Oregon?
The regular filing deadline for Oregon individual income tax returns is April 15, 2026. Taxpayers seeking an extension may receive up to 6 additional months to file, but any tentative tax due must be paid by the original deadline to prevent late-payment interest and statutory penalties.
How does Oregon treat remote workers and telecommuters?
Oregon taxes residents on all income. Nonresidents working for Oregon employers are taxed strictly on days physically present in Oregon. Oregon does not apply a convenience-of-the-employer rule.
Can small business owners in Oregon bypass the federal $10,000 SALT cap?
Oregon enacted an elective Pass-Through Entity Tax (SB 1524) allowing partnerships and S-corps to pay tax at 9.0% (and 9.9% over $250k) at the entity level to bypass federal SALT limits.
Does Oregon impose a separate estate or inheritance tax?
Oregon enforces the nation's lowest state estate tax exemption threshold at just $1,000,000, with rates starting at 10% and graduating to 16%.
Source-verified — not professional advice
Every figure on this page is checked in-house against its primary source — IRS revenue procedures and publications, state Departments of Revenue, and the text of the underlying statute — before publication. Last reviewed 2026-10-20. The full source list is at the bottom of this page. If you spot an error, see our corrections & standards policy.
Not tax, legal, or financial advice
FiscTalk provides general educational information from public sources. Your tax results depend on the full set of facts, your filing history, and the jurisdiction-specific rules that shift yearly. Before filing or making decisions, consult a licensed CPA, EA, or attorney. FiscTalk is not a fiduciary and is not affiliated with the IRS or any state agency.