How Oregon's Income Tax Works in 2026
Oregon taxes income from the very first dollar, with no 0% bracket to ease you in. Single filers pay 4.75% up to $4,550, 6.75% to $11,400, 8.75% to $125,000, and 9.9% above that. The 9.9% top rate is among the highest in the nation, and because the brackets are narrow at the bottom, workers feel the higher rates early.
The standard deduction is modest: $2,910 for single filers and $5,820 for joint filers in 2026, plus a $256 tax credit per exemption. Oregon starts from federal adjusted gross income, so federal adjustments still flow through, but the small deduction means more of your pay is exposed to those brackets.
Using the Calculator
Oregon is preselected below. Enter your gross pay and frequency to see net pay with the graduated tax, the Paid Leave Oregon deduction, and the transit tax all included. This is one of the few states where three separate state-level lines can appear on a single stub.
The contrast across the Columbia River is dramatic. Run the identical salary through our Washington paycheck calculator to see the no-income-tax alternative, or the Nevada version for another no-tax comparison.
Where Your Oregon Paycheck Goes
An Oregon paycheck carries more deductions than most. Federal income tax and FICA come out first, then the graduated state income tax, then Paid Leave Oregon at 0.6% of wages up to $184,500, then the statewide transit tax at 0.1% of wages with no cap. On a $75,000 salary, the two payroll programs add $525 a year combined.
The tradeoff is the absence of sales tax. Oregon is one of five states with no statewide sales tax, so the money the income tax takes is partly returned every time you shop without that extra percentage at the register.
Oregon Payroll Details to Know
Minimum wage and overtime
Oregon sets three regional minimum wages effective July 1, 2026: $16.30 in the Portland metro area, $15.05 standard, and $14.05 in nonurban counties. Overtime follows federal rules at time and a half after 40 hours, and Oregon requires extra overtime calculations for manufacturing workers.
Paid Leave Oregon
The program provides up to 12 weeks of paid family, medical, or safe leave per year, with benefits replacing a large share of wages for lower earners. Employees fund 60% of the 1% total contribution, hence the 0.6% deduction, while larger employers cover the other 0.4%.
Transit tax vote
Lawmakers tried to double the statewide transit tax to 0.2% for 2026, but voters rejected the increase in the May 2026 primary, so withholding stays at 0.1%. Portland-area workers may also see separate TriMet and preschool payroll taxes depending on their employer.
Worked Example: $75,000 in Portland
Take a single filer in Portland earning $75,000, paid biweekly. After the $2,910 standard deduction, Oregon taxable income is $72,090. The brackets produce about $216.13 at 4.75%, $462.38 at 6.75%, and $5,310.38 at 8.75%, for a state income tax near $5,989. Paid Leave Oregon adds $450 and the transit tax adds $75.
| Item | Annual Amount |
| Gross Pay | $75,000.00 |
| Federal Income Tax | ~$7,670.00 |
| Social Security (6.2%) | $4,650.00 |
| Medicare (1.45%) | $1,087.50 |
| Oregon State Income Tax | ~$5,988.89 |
| Paid Leave Oregon (0.6%) | ~$450.00 |
| Statewide Transit Tax (0.1%) | ~$75.00 |
| Net Annual Pay | ~$55,078.61 |
Net pay is about $55,079 a year, or roughly $2,118.41 every two weeks, an effective rate near 26.6%. The state-level total exceeds $6,500, which is why cross-river comparisons with Washington are so popular. Enter your own salary above.
Paycheck Mistakes Oregon Workers Make
- Assuming a 0% bracket exists. Oregon taxes from the first dollar at 4.75%.
- Forgetting the Paid Leave Oregon and transit tax lines, which add 0.7% combined.
- Not knowing about the May 2026 vote outcome and expecting the transit tax to double.
- Using the wrong regional minimum wage for the Portland metro versus the rest of the state.
- Ignoring the no-sales-tax offset when comparing Oregon to a lower-income-tax state.
- Missing that Portland-area workers can face additional local payroll taxes beyond the statewide ones.
Frequently Asked Questions
What are Oregon's income tax brackets for 2026?
4.75% from the first dollar, 6.75% above $4,550, 8.75% above $11,400, and 9.9% above $125,000 for single filers.
What is deducted for Paid Leave Oregon in 2026?
Employees pay 0.6% of wages up to $184,500. The program funds up to 12 weeks of paid family or medical leave.
What is the statewide transit tax for 2026?
0.1% of wages. Voters rejected a proposed increase to 0.2% in the May 2026 primary.
What is the minimum wage in Oregon for 2026?
$16.30 Portland metro, $15.05 standard, $14.05 nonurban, effective July 1, 2026.
Does Oregon have a sales tax?
No statewide sales tax, which partly offsets the high income tax for most households.
Do Oregon cities charge income tax?
Generally no wage tax, but Portland-area workers may see special TriMet and preschool payroll taxes.
More Oregon and Paycheck Tools
Build a matching stub with the Pay Stub Generator, check overtime rules with the Overtime Pay Calculator, or confirm the no-sales-tax side with the Oregon sales tax calculator. Compare with the Washington and Nevada paycheck calculators, or return to the main Paycheck Calculator.
Sources: IRS Publication 15-T, U.S. Department of Labor, Tax Foundation 2026 state tax brackets, the Oregon Department of Revenue and Paid Leave Oregon. Figures reflect 2026 tax law. This calculator gives an estimate for planning purposes and is not tax advice.