Oregon Tax Rates 2026
Income tax, property tax, and estimated take-home pay for Oregon residents.
Income Tax in Oregon
Oregon has one of the higher state income tax rates at 8.75%. Higher-income earners may want to factor this into cost-of-living comparisons.
| Tax Component | Rate / Amount | On $75K Salary |
|---|---|---|
| Federal Income Tax | 10-37% (marginal) | $10,238 |
| Oregon State Tax | 8.75% | $6,562 |
| FICA (SS + Medicare) | 7.65% | $5,738 |
| Total Tax Burden | $22,538 | |
| Annual Take-Home | $52,462 |
Property Tax in Oregon
Oregon's effective property tax rate is 0.93%, which is below the national average of 1.07%. On the national median home value of $405,300, Oregon homeowners pay approximately $3,769 per year ($314/month) in property taxes.
Property tax is deductible on your federal return if you itemize, but the SALT deduction is capped at $10,000 total (combined state income tax + property tax). In Oregon, a $75K earner paying $10,331 in combined state/local taxes exceeds the $10,000 SALT cap.
Cost of Living Considerations
Tax rates are only one piece of the puzzle. When comparing Oregon to other states, also consider housing costs, healthcare expenses, grocery prices, and transportation costs. Use our calculators below to model your specific situation.
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Sales Tax in Oregon
Oregon does not levy a state sales tax, making it one of only 5 states without one. This provides meaningful savings on everyday purchases, vehicles, electronics, and other taxable goods. However, some local jurisdictions in Oregon may impose their own sales taxes, so check your specific area.
Tax Planning Tips for Oregon Residents
Max out pre-tax contributions. Every dollar contributed to a 401(k) or traditional IRA reduces both your federal and Oregon state taxable income. A $23,500 401(k) contribution saves you $2056 in state taxes alone.
Itemize strategically. If your combined state income tax and property tax exceed $10,000, you are losing deductions to the SALT cap. Consider strategies like bunching charitable deductions or using a donor-advised fund to maximize itemized deductions in alternating years.
Consider municipal bonds. Interest from Oregon municipal bonds is typically exempt from both federal and Oregon state income tax. For investors in the 8.75% bracket, this provides a meaningful after-tax yield advantage over comparable taxable bonds.
Who Benefits from Living in Oregon?
Middle-income families in Oregon face an effective state tax rate of roughly 6.1-8.75%, which is above average. Families should focus on maximizing deductions and credits available under Oregon law.
Remote workers should verify whether Oregon taxes income based on residence or employer location. This can significantly impact your net pay if your employer is in a different state.
Small business owners in Oregon should explore whether the state offers pass-through entity tax elections, which can help circumvent the $10,000 SALT deduction cap for federal purposes.