Oregon has four income tax brackets for 2026: 4.75% on income up to $4,550 (single) or $9,100 (married), 6.75% on the next tier up to $11,400 (single) or $22,800 (married), 8.75% up to $125,000 (single) or $250,000 (married), and 9.9% on income above those thresholds. Oregon does not have a sales tax, so income tax rates are higher than most states.

Oregon itself does not have a statewide local income tax, but workers in the Portland metro area may owe two local taxes: the Metro Supportive Housing Services (SHS) tax of 1% on income over $128,000 for single filers or $205,000 for joint filers, and the Multnomah County Preschool for All (PFA) tax of 1.5% on income over $125,000 for single filers or $200,000 for joint filers (with an additional 1.5% at higher thresholds). These are filed separately from your Oregon state return.

The Oregon Statewide Transit Tax (STT) is a 0.1% (one-tenth of 1 percent) tax on all wages earned in Oregon. It applies to every employee regardless of where they live. Employers withhold this tax from each paycheck. As of 2026, the rate remains 0.1% pending the outcome of a voter referendum.

Paid Leave Oregon is a state program that provides paid family, medical, and safe leave. The total contribution rate for 2026 is 1% of wages up to $184,500. Employees pay 60% of this (0.6%), and large employers (25+ employees) pay the remaining 40% (0.4%). For a worker earning $60,000 per year, the employee share is about $360 per year or roughly $13.85 per biweekly paycheck.

Oregon has one of the highest state income tax rates in the US, with a top rate of 9.9%. However, Oregon has no sales tax, which partially offsets the higher income tax burden. States like Texas, Florida, and Washington have no state income tax but typically have higher sales or property taxes. Your overall tax burden depends on your full financial picture, not just income tax.

The Social Security wage base for 2026 is $184,500, up from $176,100 in 2025. You pay 6.2% Social Security tax on wages up to this limit, for a maximum employee contribution of $11,439. Once your cumulative wages reach $184,500 in a calendar year, you stop paying Social Security tax for the rest of that year. Medicare tax (1.45%) has no wage cap.

The 2026 federal income tax brackets for single filers are: 10% on income up to $12,400, 12% from $12,401 to $50,400, 22% from $50,401 to $105,700, 24% from $105,701 to $201,775, 32% from $201,776 to $256,225, 35% from $256,226 to $640,600, and 37% on income over $640,600. The standard deduction for single filers is $16,100 and for married filing jointly is $32,200.

Yes. If you select hourly pay, you can enter overtime hours and the calculator applies 1.5x your regular hourly rate for overtime. Oregon follows federal overtime rules requiring time-and-a-half pay for hours worked over 40 in a workweek. Your overtime pay is added to your gross pay and taxed at the same rates as regular income.