Oregon residents who purchase a new vehicle outside of the state are assessed a privilege tax. This tax must be paid before the vehicle can be titled and registered in Oregon. Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, and Wyoming are the only states without a state income tax. In New Hampshire, only interest and dividends are taxed, whereas Washington solely taxes oregon income tax rate capital gains.

State exemptions

The Income tax rates and personal allowances in Oregon are updated annually with new tax tables published for Resident and Non-resident taxpayers. The Tax tables below include the tax rates, thresholds and allowances included in the Oregon Tax Calculator 2025. The Tax tables below include the tax rates, thresholds and allowances included in the Oregon Tax Calculator 2022.

State Income Tax Rates and Brackets

The first thing to know about the state of Oregon’s tax system is that it includes no sales tax. This means that neither state nor local authorities collect taxes on the sale of products or services. Instead, the state generates revenue with a statewide income tax of 4.75% to 9.9%, ranking among the highest in the nation. Local governments levy property taxes, and these come in right around U.S. averages. The typical Oregon homeowner pays $3,633 a year in property taxes.

Where To Send Your Oregon Tax Return

Oregon has a graduated income tax, with four tax brackets and varying rates. How much you’ll pay depends on your income, filing status, and the deductions or credits you qualify for. These factors all work together to shape your final tax bill, so it’s worth knowing how they apply to you for the 2024 tax year (the taxes due in 2025). Oregon's high income taxes are partially due to the fact that Oregon has no state sales tax. Tax brackets for earnings under under $125,000 are indexed for inflation and adjusted yearly, while tax brackets over $125,000 are only changed explicitly by statute. To help offset high state income taxes, Oregon taxpayers can deduct up to $6,100 of ledger account Federal income tax from their Oregon taxable income.

• The federal standard deduction for a Head of Household Filer in 2020 is $ 18,350.00.
• Starting in 2025, the tax will be repealed, two years earlier than initially planned.
• That might involve making investments that offer tax benefits, choosing the right type of retirement account, taking advantage of deductions and credits, or investing in a tax-advantaged account.
• Be sure to check which ones apply to your situation so you can get the most out of your Oregon state income tax refund.
• 6941, Connecticut legislators reduced individual income tax rates for the two lowest brackets, from 3 percent to 2 percent and from 5 percent to 4.5 percent, respectively.
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• Forty-four states levy a corporate income tax, with top rates ranging from a 2.25 percent flat rate in North Carolina to a 11.5 percent top marginal rate in New Jersey.

• ​Yes.If you change your permanent residence to Oregon, your pension income, along with allother income regardless of source, is taxable in Oregon.
• Your employer then matches those amounts, so the total contribution is double what you paid.
• There are a few other deductions that can impact the size of your paychecks.
• Additionally, the funds in these retirement accounts grow tax-deferred, meaning that taxes on investment gains are not paid until the money is withdrawn during retirement, ideally at a lower tax rate.
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Oregon has a graduated-rate income tax, ranging from 4.75 to 9.9 percent across four income brackets. TurboTax makes it simple to maximize your refund and keep more of what you’ve earned. TurboTax guides you step by step to ensure you claim every deduction and credit you qualify for. And if you want professional tax help, simply connect with a TurboTax expert for personalized advice, or let us handle filing Cash Flow Management for Small Businesses for you.

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• Tax burdens in 2020, 2021, and 2022 are all higher than in any other year since 1978.
• Additionally, the state significantly increased its personal exemption (to $12,000 for single taxpayers and $18,500 for married couples filing a joint return).
• This tax must be paid before the vehicle can be titled and registered in Oregon.
• New Jersey has the highest state property taxes, at 2.21% of the property’s value.
• In 2025, the Oregon state income tax rates range from 4.75% to 9.90%.
• While the Oregon tax brackets are different than the federal income tax brackets as the marginal tax rates are lower, they are progressive which means you won’t just pay the highest rate that applies.

Oregon property taxes are average when compared to other states. Homeowners generally pay .87% of a property’s assessed fair market value. Those who can be claimed as a dependent on another taxpayer’s return must also file if they have gross income over $1,150. New Jersey has the highest state property taxes, at 2.21% of the property’s value.

South Carolina State Taxes

For details on specific deductions available in Oregon, see the list of Oregon income tax deductions. Statewide, the average effective property tax rate (annual property taxes as a percentage of home value) is 0.86%. Because of the inherently local nature of property tax collections in Oregon, rates vary significantly between counties.