Oregon State Income Tax Guide (2026)

Oregon's 9.9% top rate is among the highest in the country, kicking in at just $125,000 of single taxable income — much earlier than CA (13.3% at $1M+), NY (10.9% at $25M+), or NJ (10.75% at $1M+). The 8.75% bracket from $25K to $125K is what most working professionals actually pay. So the OR effective rate at $100K of taxable income is roughly 7.5% — very high by national standards. The trade-off is OR's lack of sales tax, which materially reduces the effective burden on consumption-heavy households.

Portland's local surtaxes are the part most relocators don't see coming. The Multnomah County Preschool For All Tax (PFA) adds 1.5% on income $125K–$250K and 3% above $250K (single thresholds; MFJ thresholds higher). The Metro Supportive Housing Services Tax (SHS) adds 1% on income above $125K single / $200K MFJ in the tri-county Portland metro area (Multnomah, Washington, Clackamas counties). For a Portland resident at $300K of taxable income, the stack is roughly 9.9% state + 1.5% PFA + 1% SHS = 12.4% combined. At $500K: 9.9% state + 3% PFA + 1% SHS = 13.9%. These are real, separately-administered local taxes.

Standard deduction is unusually low ($2,420 single / $4,840 MFJ for 2026) — well below federal $15K/$30K. So OR taxable income is meaningfully larger than federal taxable income on the standard-deduction path.

Two scenarios to anchor the math.

OR property tax effective rates by county (approximate): Multnomah (Portland) 1.0–1.4%, Washington (Hillsboro/Beaverton) 0.95–1.20%, Clackamas 0.90–1.15%, Lane (Eugene) 0.95–1.20%, Marion (Salem) 1.05–1.30%, Deschutes (Bend) 0.65–0.85%. Statewide average ~0.93%. Measure 50 (1997) caps assessed value growth at the lower of 3% or actual assessment increase — meaningful Prop 13–style benefit for long-term homeowners.

WA-OR border arbitrage: WA residents working in Portland owe OR state tax on PDX workdays (no Portland local surtax for non-residents). They DON'T owe WA income tax (WA has none). Net: WA residents commuting to Portland pay roughly OR's state rate (8.75–9.9% on PDX-source income), avoid the Portland local surtaxes, and save the OR tax on WA-source remote workdays. The combined effective rate on hybrid-commuter wages is meaningfully lower than full-time PDX residents. This is the quiet reason Vancouver WA's population has grown faster than Portland's for the past decade.

Oregon is meaningfully high-tax, especially for Portland metro professionals. The combination of a 9.9% top state rate kicking in at just $125K, plus 1.5–3% local Portland surtaxes, plus a $1M estate tax exemption, makes OR one of the more financially expensive places to be a high-earning professional. The trade-offs are genuine: no sales tax, Measure 50 property tax cap for long-term homeowners, exceptional outdoor lifestyle, and a meaningful tech / sportswear / food cluster.

Run your numbers in the calculator above. The OR state line is large for most professionals. If you're in Portland tri-county (Multnomah/Washington/Clackamas), add the PFA and SHS surtaxes manually — they're filed separately from OR state. If you're considering Vancouver WA living + Portland working, model the WA-OR commuter math honestly. The biggest tax mistake most Oregonians make isn't paying too much OR state tax — it's not factoring in the Portland metro surtaxes when relocating to Portland from a low-tax state.