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• In this case, you can deduct any claim right of income repayments over $3,000.
• While the state income taxes deal a heavy hit to some earners’ paychecks, Oregon’s tax system isn’t all bad news for your wallet.
• Oregon’s state and local governments receive revenue from numerous sources including federal transfer payments; tuition, hospital and other charges; Lottery revenue; and taxes.
• While we strive to provide a wide range offers, Bankrate does not include information about every financial or credit product or service.
• Contributions you make to a retirement plan, like a 401(k), or to a medical expense account, like a health savings account (HSA), will also come out of your paycheck.

So, whether you’re reading an article or a review, you can trust that you’re getting credible and dependable information. At Bankrate we strive to help you make smarter financial decisions. While we adhere to strict
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Oregon State Tax Calculator ( Tax Calculator)

While this will result in slightly less money per paycheck, it could save you money come tax time. Taxpayers who are self-employed will have to pay the entire Social Security and Medicare contributions themselves. If you fall into this camp, make sure that during tax season you look into possible deductions to help recoup the money you spend on the “employer” portion of FICA taxes. For help filing your taxes and maximizing your deductions, consider working with a financial advisor who specializes in taxes.

Property subject to taxation includes all privately owned real property (land, buildings, and fixed machinery and equipment) and personal property used in a business. Our goal is to give you the best advice to help you make smart personal finance decisions. We follow strict guidelines to ensure that our editorial content is not influenced by advertisers. Our editorial team receives no direct compensation from advertisers, and our content is thoroughly fact-checked to ensure accuracy.

Updates to the Oregon State Tax Calculator

Our goal is to improve decision making and generate more opportunities for all Oregonians. Because ensuring that all Oregonians have a real opportunity to thrive requires public policy grounded in facts. Though Oregon tax law is no longer explicitly racist, it continues to entrench and even deepen racial disparities that are the result of past and present policy choices. Taxes how much is oregon income tax pay to educate our children, to care for our seniors, and for many other services that we alone cannot shoulder. Kiplinger is part of Future plc, an international media group and leading digital publisher. Rocky Mengle was a Senior Tax Editor for Kiplinger from October 2018 to January 2023 with more than 20 years of experience covering federal and state tax developments.

• Self-employed individuals who earn money in the Tri-County Metropolitan Transportation District (TriMet) may have to pay an additional transit tax of 0.7937% in 2022 (up from 0.6918% in 2021).
• For example, weekly (40 hours) will equal $0.44, bi-weekly (80 hours) will equal $0.88, etc.
• While putting money in these accounts shrinks your paycheck, it also lowers your taxable income (and, in the case of retirement accounts, simultaneously helps secure your financial future).
• Voters can also approve bond levies, which are used exclusively to repay a bond used to fund capital projects.
• For withholding purposes, each allowance claimed on federal Form W-4 was equal to one personal exemption deduction for the year on your federal return.
• Read about
  military personnel filing requirements and
  American Indian filing information.

Tax collections are managed primarily by the 36 counties in Oregon, which assess property and calculate taxes owed. Revenue from the property tax typically goes to support local services such as schools and law enforcement. Oregon has a progressive income tax that ranks among the highest in the nation. The average effective property tax rate is about average, though, ranking as the 26th-highest rate in the country.

Oregon Tax Rates, Collections, and Burdens

Oregon levies a progressive state income tax system with one of the highest top rates in the U.S., at 9.90%. Residents of the greater Portland metro area also have to pay a tax to help fund the TriMet transportation system. The Beaver State also has no sales taxes and below-average property taxes. Oregon collects a state income tax at a maximum marginal tax rate of %, spread across tax brackets. Like the Federal Income Tax, Oregon’s income tax allows couples filing jointly to pay a lower overall rate on their combined income with wider tax brackets for joint filers.

For example, weekly (40 hours) will equal $0.44, bi-weekly (80 hours) will equal $0.88, etc. If you live and work in the same state, you probably need to file only one state return each year if applicable. But if you moved to another state during the year, lived in one state but worked in another, or have, say, income-producing rental properties in multiple states, you might need to file more than one. We believe everyone should be able to make financial decisions with confidence.

Inheritance and estate taxes

Oregon has an estate tax for estates valued at $1 million or more. Oregon also has an estate tax for estates worth $1 million or more. Your employer or other payer should be able to provide the form and instructions for you as well. If you don’t know what these amounts will be, you can skip those fields in the calculator. The closer you can get to the actual amounts, however, the better your results will be.