Basic Info
Deductions
Insurance Premiums
Oregon Paycheck Results
Calculating your paycheck…
Take-Home Pay:
$0.00
Per Pay Period:
$0.00
Tax Breakdown
Federal Income Tax:
$0.00
State Income Tax (OR):
$0.00
Social Security:
$0.00
Medicare:
$0.00
Additional Medicare:
$0.00
Total Tax:
$0.00
Deduction Breakdown
401(k) Contribution:
$0.00
Traditional IRA:
$0.00
HSA Contribution:
$0.00
FSA Contribution:
$0.00
Health Insurance:
$0.00
Dental Insurance:
$0.00
Vision Insurance:
$0.00
Other Deductions:
$0.00
Total Deductions:
$0.00
Gross Annual Income:
$0.00
Effective Tax Rate:
0.00%
Oregon State Income Tax Information
Oregon employs a progressive income tax system with four tax brackets for the 2025 tax year:
- 4.75% on taxable income up to $4,300
- 6.75% on taxable income between $4,301 and $10,750
- 8.75% on taxable income between $10,751 and $125,000
- 9.9% on taxable income over $125,000
These rates apply uniformly across all filing statuses. Additionally, many Oregon municipalities impose local income taxes ranging from 0.5% to 3%.
Standard Deduction
For the 2025 tax year, Oregon offers the following standard deductions:
- Single or Married Filing Separately: $2,745
- Married Filing Jointly or Qualifying Widow(er): $5,495
- Head of Household: $4,420
Note: Taxpayers aged 65 or older or who are blind may be eligible for additional standard deduction amounts.
Retirement Income
Oregon provides tax benefits for retirees:
- Social Security Benefits: Fully exempt from state income tax.
- Other Retirement Income: Most retirement income is taxable, but Oregon offers a retirement income credit based on age and income. Additionally, up to $17,500 of federal retirement pay or pension received for service in the Armed Forces may be exempt for taxpayers aged 63 or older.
FICA Taxes
| Tax Component | Rate | Income Limit |
|---|---|---|
| Social Security | 6.2% | Up to $176,100 |
| Medicare | 1.45% | No Limit |
| Additional Medicare | 0.9% | Income above $200,000 (Single) / $250,000 (Married) |
Pre-Tax Deductions
Common pre-tax deductions available to Oregon residents include:
- Contributions to 401(k), 403(b), and other retirement plans
- Health and dental insurance premiums
- Health Savings Account (HSA) and Flexible Spending Account (FSA) contributions
- Pre-tax transit and commuter benefits
Oregon-Specific Tax Credits and Deductions
| Credit or Deduction | Description |
|---|---|
| Earned Income Credit | Provides a credit equal to 9% of the federal Earned Income Tax Credit for eligible low- to moderate-income workers. |
| Child and Dependent Care Credit | Offers a credit for qualifying child and dependent care expenses, varying based on income and number of dependents. |
| Retirement Income Credit | Available to taxpayers aged 62 or older with qualifying retirement income, subject to income limitations. |
Interesting Facts About Oregon Taxes
- Oregon does not impose a state sales tax, making it one of the few states without this tax.
- The state offers various tax incentives to promote education, renewable energy, and support low-income families.
- Recent tax reforms have aimed to simplify the tax code and reduce the overall tax burden on residents.
Frequently Asked Questions (FAQs)
- Does Oregon tax Social Security benefits?
- No, Social Security benefits are fully exempt from Oregon state income tax.
- What is the standard deduction in Oregon for 2025?
- The standard deduction is $2,745 for single filers, $5,495 for married couples filing jointly, and $4,420 for head of household filers.
- Are there any tax credits for education-related expenses?
- Yes, Oregon offers tax credits for contributions to scholarship-granting organizations and educational improvement grants, subject to certain limitations.
- How does Oregon’s income tax system work?
- Oregon uses a progressive income tax system with four brackets, taxing higher income levels at higher rates, ranging from 4.75% to 9.9%.