Oregon · the numbers
Oregon figures at a glance, 2026
The Oregon numbers for the 2026 return in one place: the four rates and where they start, the standard deduction, the exemption credit, the federal tax subtraction, the credits, the Portland-area taxes, the estate tax line and the dates. Each with a one-line note, the 2025 figure alongside, and a short list of what moved. For anyone who files here, and for anyone checking a preparer’s work.
By Charles Trautman, EA, editor
Need to Know Tax · written from Oregon Department of Revenue sources, November 3, 2026; updated November 12, 2026 after the election · not yet reviewed by an Oregon practitioner
Oregon’s return has more moving parts than most, and several of them are indexed each year. The Department of Revenue publishes the indexed 2026 figures with the 2026 Publication OR-17 and Form OR-40 instructions, usually in late December or January. Where that has not happened yet, the table shows the 2025 figure and says so, or shows a reported 2026 figure flagged for verification. The numbers that are fixed in statute and never move, the rates, the $125,000 and $250,000 top-bracket lines, the $1,000,000 estate tax threshold, are the ones to memorize.
Rates and brackets
| Rate | Single or MFS, 2025 | Single or MFS, 2026 | Joint, HOH, QSS, 2025 | Joint, HOH, QSS, 2026 |
|---|---|---|---|---|
| 4.75% on the first | $4,400 | $4,550 (verify) | $8,800 | $9,100 (verify) |
| 6.75% up to | $11,100 | $11,400 (verify) | $22,200 | $22,800 (verify) |
| 8.75% up to | $125,000 | $125,000 | $250,000 | $250,000 |
| 9.9% above | $125,000 | $125,000 | $250,000 | $250,000 |
The two lower thresholds are indexed; the Department’s 2026 rate chart is to come, so the 2026 figures above are reported, not official. The $125,000 and $250,000 lines are set in statute and have not moved. The Department’s 2025 chart confirms the arithmetic: a single filer with $50,000 of taxable income owed $4,065 in 2025, which is 4.75% of $4,400 plus 6.75% of the next $6,700 plus 8.75% of the rest.
The sentence to remember: because the 8.75% bracket begins at roughly $11,400 of taxable income, most working Oregonians pay 8.75% on their last dollar. The 9.9% rate reaches a single filer at $125,000 of taxable income, which is roughly $135,000 of wages once the standard deduction and whatever federal tax subtraction survives the phase-out are added back.
Deductions, the exemption credit and the federal tax subtraction
| Item | 2025 | 2026 | Note |
|---|---|---|---|
| Starting point | Federal AGI | Federal AGI | Form OR-40 line 7; Oregon rebuilds the deductions from there |
| Standard deduction, single or MFS | $2,835 | $2,910 (verify) | Indexed; $0 for an MFS filer whose spouse itemizes |
| Standard deduction, joint or QSS | $5,670 | $5,820 (verify) | Indexed |
| Standard deduction, head of household | $4,560 | to come | Indexed |
| Additional standard deduction, 65 or older or blind | $1,200 single/HOH; $1,000 per spouse joint/MFS | to come | Each condition counts once per person |
| Dependent’s standard deduction | Greater of $1,350 or earned income + $450 | to come | Capped at the regular amount |
| Itemizing | Schedule OR-A | Schedule OR-A | Allowed even if you took the federal standard deduction; Oregon income tax itself is never deductible |
| Exemption credit, per person | $256 | to come | Nonrefundable; zero when federal AGI is over $100,000 single/MFS or $200,000 other statuses |
| Federal tax subtraction, maximum | $8,500 ($4,250 MFS) | $8,500 in the 2026 withholding tables; return figure to come (verify) | Federal income tax liability comes off Oregon income; phases out at higher AGI |
| Social Security subtraction | 100% | 100% | Any age, any income |
| Special Oregon medical subtraction, age 66+ | Up to $1,800 per person | to come | Phases to $0; federal AGI must be $200,000 or less ($100,000 single/MFS) |
| QBI deduction | Not allowed | Not allowed | Oregon is disconnected from IRC 199A |
| Federal senior deduction ($6,000) | Not allowed | Not allowed | Oregon is disconnected from IRC 151 |
| Tips and overtime deductions | Allowed as subtractions | Allowed as subtractions | Schedule OR-ASC; nonresidents, Oregon workdays only |
| Car-loan interest deduction | Allowed | Added back | SB 1507 |
| Bonus depreciation | Followed federal | Disallowed; recovered over asset life | SB 1507 |
The 2025 figures are from Publication OR-17 (2025) and the Board of Tax Practitioners’ 2025 quick reference sheet. The reported 2026 standard deduction figures are secondary and await the Department’s instructions.
Worked example: a single filer with $60,000 of wages, 2026
No dependents, no itemizing, Salem address. The federal return comes first because Oregon needs the federal tax figure.
| Amount | |
|---|---|
| Federal AGI | $60,000 |
| Federal standard deduction, 2026 | −$16,100 |
| Federal taxable income | $43,900 |
| Federal tax (10% of $12,400 + 12% of $31,500) | $5,020 |
| Oregon: federal AGI | $60,000 |
| Oregon standard deduction | −$2,910 |
| Federal tax subtraction (the $5,020, under the cap) | −$5,020 |
| Oregon taxable income | $52,070 |
| 4.75% of $4,550 | $216 |
| 6.75% of $6,850 | $462 |
| 8.75% of $40,670 | $3,559 |
| Tax before credits | $4,237 |
| Exemption credit (2025 figure) | −$256 |
| Oregon tax | $3,981 |
About 6.6% of wages, with a marginal rate of 8.75%. The federal tax subtraction is worth $439 here (8.75% of $5,020). Bracket thresholds and the standard deduction are the reported 2026 figures and the exemption credit is the 2025 figure; the official 2026 numbers will move the answer by a few dollars.
The credits
| Credit | Figure | Refundable? | Limits |
|---|---|---|---|
| Oregon earned income credit | 14% of the federal EITC; 17% with a dependent under 3 (2025: 9% / 12%) | Yes | Federal EITC rules; ITIN filers claim on Schedule OR-EIC-ITIN |
| Oregon Kids Credit | $1,050 per child age 0 to 5, up to five children (2025 figure; 2026 to come) | Yes | Full at modified AGI of $26,550 or less, $0 at $31,550 (2025); not for MFS |
| Working Family Household and Dependent Care | Percentage of care expenses set by income and household size, Schedule OR-WFHDC | Yes | Income table in the schedule instructions |
| Exemption credit | $256 per taxpayer, spouse and dependent (2025; 2026 to come) | No | AGI $100,000 single/MFS, $200,000 other |
| Oregon 529 College Savings Plan credit | Up to $190 single / $380 joint (2025: $180 / $360) | Yes | Percentage of contributions falls as AGI rises |
| Oregon ABLE account credit | Up to $190 / $380 | Yes | Same table as the 529 credit |
| Retirement income credit, age 62+ | 9% of the lesser of pension income or $7,500 single / $15,000 joint, reduced by Social Security and by household income over $15,000 / $30,000 | No | Gone at household income of $22,500 / $45,000; extended to 2032 by HB 2087 |
| Political contribution credit | $50 single / $100 joint | No | Federal AGI under $75,000 / $150,000 (verify) |
| Credit for taxes paid to another state | Lesser of the other state’s tax or Oregon tax on the same income; Schedule OR-ASC code 802 | No | None |
| New-jobs credit (2026–2031) | $1,000 per net new job, up to 10; 150% of minimum wage; Business Oregon certification | No | $12.5 million statewide cap; 3-year carryforward |
| Kicker (surplus credit) | None on the 2026 return (9.863% of 2024 tax on the 2025 return) | Yes | No kicker projected for the 2027 return in the August 2026 forecast |
Portland-area local taxes
| Tax | Rate | Threshold, single / joint | Form |
|---|---|---|---|
| Metro Supportive Housing Services | 1% of Oregon taxable income above the threshold | $128,000 / $205,000 (2025: $125,000 / $200,000; 2027: $132,000 / $211,000) | MET-40, MET-40-NP |
| Multnomah County Preschool for All | 1.5% above the first threshold, 3% above the second; 0.8-point increase delayed to 2028 | $125,000 / $200,000 and $250,000 / $400,000 (not indexed) | MC-40, MC-40-NP |
| Portland Arts Education Tax | $50 per filer; $100 joint (indexed from 2027) | Oregon taxable income over $20,000 / $40,000 | Filed at portland.gov/revenue |
| Statewide Transit Tax | 0.1% of wages, withheld | All Oregon wages | On the W-2; nothing to file |
SHS and PFA are due April 15, 2027 with the state return. Employers withhold automatically only for employees paid over $200,000; others opt in or pay estimates, and from 2026 estimates are required only when liability is $5,000 or more. A Portland resident in the 9.9% bracket pays 9.9% + 1% + 3% = 13.9% on the top dollar. Outside the Metro district there are no local income taxes.
Dates
| Date | What |
|---|---|
| January 15, 2027 | Fourth 2026 estimated payment |
| April 15, 2027 | Form OR-40 and all 2026 tax due; first 2027 estimated payment; extension payment by Form OR-40-V or Revenue Online |
| June 15, 2027 | Second 2027 estimated payment |
| September 15, 2027 | Third 2027 estimated payment |
| October 15, 2027 | Extended due date; Oregon honors the federal extension |
Estimated payments are required when Oregon tax after credits and withholding is expected to be $1,000 or more; the safe harbor is 90% of this year’s tax or 100% of last year’s, with no higher tier for high earners. Interest is 8% a year for 2026; the late-payment penalty is 5%, rising to a total of 25% if the return is more than three months late.
Beyond the income tax
| Item | 2026 |
|---|---|
| Estate tax | Filing threshold $1,000,000, not indexed, and a cliff; rates 10% to 16%; Form OR-706 due 12 months after death; no portability; no inheritance or gift tax |
| Sales tax | None, state or local |
| Property tax relief | No homestead exemption or senior freeze; assessed value growth capped at 3% a year (Measure 50); Senior and Disabled Property Tax Deferral at age 62 with household income under $70,000 (verify), a lien at 6% simple interest |
| Reciprocity for wages | None with any state |
| Oregon Lottery | Prizes of $600 or less per ticket not taxed by Oregon |
| Home sale | Follows the federal $250,000 / $500,000 exclusion |
What changed from 2025
Oregon EIC, 14% and 17%. Up from 9% and 12%, for tax years 2026 and later (SB 1507). The largest change for most families.
Three add-backs. Car-loan interest, the qualified small business stock exclusion and bonus depreciation are added back on 2026 returns (SB 1507). Tips and overtime subtractions continue.
No kicker. The 2025 return carried 9.863% of 2024 tax; the 2026 return carries nothing, and the August 26, 2026 forecast is $526 million below the trigger for a 2027 kicker.
529 and ABLE credits, $190 / $380. Up from $180 / $360.
Indexed figures. The two lower bracket lines, the standard deduction, the exemption credit, the Kids Credit phase-out and the federal tax subtraction limit all move with inflation; the Department’s 2026 figures are to come.
Metro SHS indexed. Thresholds $128,000 / $205,000 for 2026, the first annual adjustment; estimated-payment trigger $5,000.
Arts Tax restructured. $50 per filer, $100 joint, with income thresholds of $20,000 / $40,000 of Oregon taxable income.
Statewide Transit Tax stays at 0.1%. Voters repealed the doubling in Referendum 120 on May 19, 2026.
New-jobs credit. $1,000 per net new job for employers, 2026 through 2031.
Interest rate 8%. For interest periods beginning on or after January 1, 2026, on tax owed and on refunds.
Behind the scenes: which figures move and which do not
Oregon indexes the two lower bracket thresholds, the standard deduction, the exemption credit, the federal tax subtraction limit and the Kids Credit phase-out every year, and the Department publishes them with the forms in December or January rather than in the fall. That is why a 2026 Oregon table written in November has blanks. The lines that matter most for high earners were deliberately left out of indexing: the $125,000 and $250,000 start of the 9.9% bracket has not moved since it was set, and the $1,000,000 estate tax threshold has not moved since 2012. Each year of inflation pulls more households across both lines without any vote. The Portland-area taxes copied that pattern for their first five years; Metro began indexing the SHS thresholds in 2026, and the county has not.
What to bring
- Last year’s Oregon return, with the kicker line, so this year’s can be compared
- The completed federal return, because the federal tax subtraction needs the federal tax figure
- Property tax statements, charitable receipts and medical bills, even if you took the federal standard deduction; Oregon itemizing is separate
- Dates of birth for everyone on the return, for the age-65 deduction and the 17% EIC rate
- Oregon College Savings Plan and ABLE contribution statements
- Estimated payment confirmations from Revenue Online
- For Portland-area filers: SHS and PFA withholding from the W-2 (labeled METRO and MULT) and any estimated payments
Questions people ask
What is the Oregon tax rate for 2026?
Four rates: 4.75%, 6.75%, 8.75% and 9.9%. The 8.75% rate begins at about $11,400 of taxable income single or $22,800 joint, and the 9.9% rate at $125,000 single or $250,000 joint. Most working filers pay 8.75% on their last dollar.
What is the Oregon standard deduction for 2026?
The Department has not published it. For 2025 it was $2,835 single, $5,670 joint and $4,560 head of household, plus $1,200 or $1,000 per person for age 65 or blindness. Reported 2026 figures of $2,910 and $5,820 await confirmation.
Is there a kicker on the 2026 return?
No. The kicker lands only on odd-year returns; the last one, 9.863% of 2024 tax, was on the 2025 return. The state forecast of August 2026 projects none for 2027 either.
How much is the federal tax subtraction?
Up to $8,500 of federal income tax liability ($4,250 married filing separately) for 2025, phased out at higher AGI. The 2026 withholding tables also use $8,500; the figure on the 2026 return is to come.
Did the Oregon earned income credit go up?
Yes. For 2026 it is 14% of the federal credit, or 17% with a dependent under age 3, up from 9% and 12%.
Does Oregon have a sales tax or a local income tax?
No sales tax anywhere in the state. Local income taxes exist only in the Portland area: the Metro SHS tax, the Multnomah County Preschool for All tax and the Portland Arts Tax.
Four rates, three fixed lines, a lot of blanks until January
Learn where $11,400, $125,000 and $1,000,000 fall for your household; the indexed figures will fill in when the Department publishes the 2026 forms.
Written by Charles Trautman, EA, editor · Need to Know Tax, Lone Tree, Colorado
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Forms and official pages named in this article
- Publication OR-17, Oregon Individual Income Tax Guide (2025)
- 2025 full-year resident tax tables and rate charts
- Schedule OR-ASC and OR-ASC-NP instructions (2025)
- Oregon tax credits for individuals
- Publication OR-ESTIMATE, Oregon estimated income tax instructions
- Form OR-40-V, payment voucher instructions
- Portland Revenue Division: Metro SHS and Multnomah PFA taxes
- Portland Arts Education Tax
Sources and where to check
- Department of Revenue: Publication OR-17 (2025), standard deduction, federal tax subtraction, conformity exceptions
- Oregon Board of Tax Practitioners: 2025 quick reference sheet (standard deductions, exemption credit)
- Department of Revenue: 2025 rate charts
- Department of Revenue: 2026 withholding tax tables ($8,500 federal tax subtraction)
- Department of Revenue: credits page (Kids Credit, 529 and ABLE credits, exemption credit)
- Department of Revenue: 2026 Summary of Legislation
- Oregon Legislature: SB 1507 A staff measure summary
- Oregon Legislature: HB 2087 A staff measure summary
- Department of Revenue: kicker
- Office of Economic Analysis: forecast slides, August 26, 2026
- Department of Revenue: penalties and interest (8% for 2026)
- Department of Revenue: personal income tax overview (estimated tax, lottery, home sale)
- Portland Revenue Division: SHS and PFA thresholds
- Portland Revenue Division: Arts Tax 2026
- Ballotpedia: Referendum 120