2025 Oregon Sales Tax Calculator &  Rates

The Oregon excise tax on beer is $0.08 per gallon, one of the lowest beer taxes in the country. The Oregon beer tax is already added to the purchase price of all beer bought in Oregon, whether in kegs, bottles, or cans. The Oregon excise tax on cigarettes is $1.31 per 20 cigarettes, lower then 54% of the other 50 states. Oregon’s excise tax on cigarettes is ranked #27 out of Oil And Gas Accounting the 50 states. The Oregon cigarette tax of $1.31 is applied to every 20 cigarettes sold (the size of an average pack of cigarettes). If a pack contains more then 20 cigarettes, a higher excise tax will be collected.

Does Oregon offer a deduction for federal taxes paid?

These local taxes must tax rate in oregon be filed and paid separately from the state income tax return. 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. You will gradually make your way up to the highest rate that’s for the portion of income that exceeds the previous bracket.

Oregon: Sales Tax Handbook

• Oregon uses a progressive income tax system with rates ranging from 4.75% to 9.9%.
• 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.
• It consists of four income tax brackets, with rates increasing from 4.75% to a top rate of 9.9%.
• Oregon does not allow local jurisdictions like cities or counties to collect a local sales tax.
• Other important adjustments include the subtraction for contributions to an Oregon 529 College Savings Plan.
• If you want to check the status of your Oregon tax refund, you can visit the Oregon Income Tax Refund page.

Oregon grants this extension automatically if the taxpayer has filed for a federal extension using IRS Form 4868. No separate application or form needs to be submitted to the Oregon Department of Revenue (DOR) solely for the extension to file. The property tax bills are paid to the county, which then distributes the revenue to the various taxing districts, including schools, cities, and special districts. Because of the MAV cap, properties that have not been sold recently often have an AV significantly lower than their current RMV. This creates substantial tax equity differences between long-time owners and new purchasers.

• For those with pending applications or new to Oregon, early planning can help avoid surprises and ensure a smooth transition to the state’s tax system.
• While there is no statewide sales tax, some local jurisdictions impose specific, narrowly defined taxes that can resemble sales taxes.
• Failure to pay the estimated liability by the original deadline will result in the assessment of interest on the underpayment.
• If compiling and filing your taxes is an area you struggle with, a financial advisor can help.
• Qualifying deductions might include an itemized deduction, the Oregon standard deduction, exemptions for dependants, business expenses, etc.
• One thing you can do is tweak your tax withholdings by asking your employer to withhold an additional dollar amount from your paychecks.
• Residents of the greater Portland metro area also have to pay local income tax.

Paid Leave Contribution Rate

• Residents of Portland should also factor in the city’s $35 arts tax, which applies to many adult residents.
• The Real Market Value is the estimated price a property would sell for in a transaction between a willing buyer and a willing seller on January 1 of the assessment year.
• The Lane Transit District (LTD), which serves the Eugene/Springfield area, similarly imposes a district-wide payroll tax.
• Navigating the complexities of state taxes can be daunting, but understanding Oregon’s tax landscape is essential for residents and newcomers alike.
• Like the personal income tax the federal business tax is bracketed based on income level, with eight corporate tax brackets.
• Similar to the personal income tax, businesses must file a yearly tax return and are allowed deductions such as wages paid, cost of goods sold, and other qualifying business expenses.

In this guide, we’ll explore key components of The Beaver State’s tax system, from income and sales taxes to property taxes and retirement benefits. Instead of sales and use tax, the Oregon legislature generates revenue through higher income and property taxes. The Oregon state sales tax rate is 0%, and the average OR sales tax after local surtaxes is 0%. There are a few other deductions that can impact the size of your paychecks. If you pay for any benefits from your employer, such as health or life insurance, any premiums you pay will come out of your paycheck.

The first thing to know about the state of Oregon’s tax system is that it unearned revenue 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. In addition to the Oregon corporate income tax, Oregon corporations must also pay the federal corporate income tax.

Oregon State Corporate Income Tax 2025

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). While the top marginal rate is 9.9%, the average effective tax rate for most Oregon taxpayers is about 6.0% of adjusted gross income after deductions and credits. This means that, on average, taxpayers pay about 6% of their income in state taxes, though the exact amount depends on income level and eligibility for deductions.

January 2026 Visa Bulletin Predictions, Analysis and Understanding

• For instance, standard deductions for 2024 are $2,745 for single filers and $5,495 for those married filing jointly.
• This means that the applicable sales tax rate is the same no matter where you are in Oregon.You can view a full list of sales tax rates for Oregon here.
• Oregon has a tax on wine at 67 cents per gallon and beer is taxed at just eight cents per gallon.
• The two most popular tax software packages are H&R Block At Home, sold by the H&R Block tax preparation company, and TurboTax Federal & State, sold by the Intuit software company.
• They are backed by successful founders like Balaji Srinivasan, Biz Stone(Twitter) and others.
• There is no local or county income tax except in certain jurisdictions like the Metro area.

Low earners may pay little or no state tax even in high-tax states. For more localized statistics, you can find your county in the Oregon property tax map or county list found on this page. Get insight into how different rates apply to finances within the state. Tax exclusions are an amount of money or income that is not subject to taxation.