Oregon Paycheck Calculator
Oregon Pay Breakdown
Oregon’s Tax Bite Is Bigger Than Most People Expect
Oregon has one of the steeper state income tax burdens in the country. The top marginal rate sits at 9.9%, which kicks in on income above $125,000 for single filers. Below that threshold, rates climb from 4.75% through 6.75% and 8.75%. Add federal taxes, FICA, and — if you live in the Portland metro area — the Metro Supportive Housing Services surcharge and Multnomah County’s Preschool for All tax, and your effective take-home rate can look very different from your gross wage. This calculator handles all of those layers.
Oregon Tax Layers This Calculator Covers
Federal income tax works the same here as everywhere — progressive brackets, standard deduction applied. Oregon state income tax uses its own brackets and its own standard deduction ($2,420 single, $4,840 married). Oregon also has a statewide transit tax of 0.1% on all wages, which funds public transit infrastructure. If you live in the Portland Metro area, there’s an additional 1% Metro SHS surcharge on taxable income above $125,000 (single) or $200,000 (married). That last one surprises a lot of high earners who move to Oregon assuming it’s only a state issue.
For complete Oregon tax guidance, the Oregon Department of Revenue individual tax page publishes current bracket tables, withholding formulas, and form instructions.
Oregon Has No Sales Tax — But That Doesn’t Offset Income Tax
Oregon is frequently cited as a no-sales-tax state, and that’s true. But for workers, the income tax cost often outweighs the sales tax savings, especially at higher incomes. A household earning $200,000 in Oregon might save $8,000–$10,000 per year in sales taxes compared to a high-tax sales state, but pay $15,000–$20,000 more in state income tax. The net effect depends heavily on spending patterns and income level.
The Oregon Paycheck Formula With a Worked Example
Net Pay = Gross – Pre-Tax Deductions – Federal Tax – SS – Medicare – Oregon State Tax – Statewide Transit Tax – Metro SHS (if applicable)
A Portland software developer earns $5,500 bi-weekly, files single, and contributes $550 to a 401(k). They live in Multnomah County.
- Gross: $5,500
- Pre-tax 401(k): $550 — taxable income drops to $4,950 per period ($128,700 annual)
- Federal taxable: $128,700 – $14,600 standard = $114,100. Federal tax: roughly $19,424 per year, or $747 per period.
- Social Security: $5,500 x 6.2% = $341
- Medicare: $5,500 x 1.45% = $79.75
- Oregon state tax on $128,700 (minus $2,420 OR standard = $126,280): about $10,900 per year, or $419 per period
- Statewide transit: $5,500 x 0.1% = $5.50
- Metro SHS: $128,700 exceeds $125,000 threshold — $3,700 x 1% = $37 annually, about $1.42 per period
- Net pay: $5,500 – $550 – $747 – $341 – $79.75 – $419 – $5.50 – $1.42 = $3,356.33
That’s a 39% effective reduction from gross. A comparable earner in neighboring Washington (no state income tax) would take home around $750 more per bi-weekly period. That gap is why some Oregon workers commute from Washington.
Maximizing Your Oregon Take-Home Pay
Pre-tax deductions matter enormously at Oregon’s rates. Every $100 in traditional 401(k) contributions saves roughly $8.75–$9.90 in state tax alone, depending on your bracket, on top of federal savings. An HSA contribution of $4,300 (self-only limit) saves roughly $376 in Oregon state tax for someone in the 8.75% bracket. That’s meaningful money. Pairing pre-tax deductions with this calculator shows you the exact net impact of each contribution dollar. Our 401k payroll calculator helps model how different contribution rates affect your bi-weekly paycheck specifically.
Common Oregon Paycheck Mistakes
- Not accounting for the Metro SHS tax. The 1% surcharge on income over the threshold is employee-withheld, but many employers weren’t initially set up to withhold it automatically. If you earn above the threshold in Portland Metro, check your pay stub to confirm it’s being withheld — otherwise you’ll owe it at filing.
- Using federal deductions to estimate state tax. Oregon’s standard deduction is much smaller than the federal one. Using the federal standard deduction to estimate state tax dramatically understates your Oregon tax bill.
- Ignoring the statewide transit tax. It’s small — 0.1% — but it’s an employee contribution, not employer-only. It applies to all wages with no cap and shows up as a separate line on your pay stub.
The IRS withholding estimator helps confirm your federal withholding is on track, even while you’re sorting out Oregon’s additional layers.
FAQs
What are Oregon’s income tax rates?
Oregon uses four tax brackets for single filers: 4.75% up to $4,050, 6.75% up to $10,200, 8.75% up to $125,000, and 9.9% on anything above that. Married filers get brackets at double those income thresholds. Oregon’s top rate is among the highest of any state in the US.
What is the Oregon statewide transit tax?
The Oregon statewide transit tax is 0.1% of gross wages, withheld from employees by employers on every paycheck. It funds public transit projects statewide and has no wage cap. Even low earners pay this tax, though at $1 per $1,000 earned it’s a modest amount.
Who pays the Portland Metro Supportive Housing Services tax?
Individuals who live in the Metro jurisdictional boundary and have taxable income above $125,000 (single) or $200,000 (joint) pay a 1% surcharge on all taxable income above those thresholds. Employers in the Metro area are required to withhold this tax for resident employees.
Does Oregon have a standard deduction for state income tax?
Yes, but it’s much smaller than the federal standard deduction. Oregon’s standard deduction is $2,420 for single filers and $4,840 for married filers filing jointly. Because it’s so low, most Oregon taxpayers end up with a large state taxable income even after the deduction.
Does Oregon have a sales tax?
No. Oregon has no state sales tax, no county sales tax, and no city sales tax. This helps offset the income tax impact for lower earners, but at higher income levels the income tax cost typically outweighs the sales tax savings.
Can I reduce my Oregon state tax withholding?
Yes. You file an Oregon Withholding Statement (Form OR-W-4) with your employer. Claiming additional allowances reduces withholding, but underpaying Oregon taxes triggers interest and potentially penalties. Use the Oregon Department of Revenue’s withholding calculator to find the right number.
Is Social Security income taxed in Oregon?
Yes. Unlike some states that exempt Social Security benefits, Oregon taxes Social Security income. A subtraction is available for lower-income residents, but higher earners pay Oregon income tax on their full Social Security benefit that’s subject to federal tax.
What is Oregon’s income tax for someone living in Washington but working in Oregon?
If you live in Washington and work in Oregon, you owe Oregon income tax on your Oregon-sourced wages. You do not owe Washington income tax since Washington has none. Many commuters across the Columbia River find this worthwhile given Oregon’s state income tax applies while they live in a tax-free state.