Oregon Paycheck Calculator 2026

Oregon Income Tax Overview 2026

Oregon's income tax rate is 4.75% to 9.9% (top rate: 9.9%). Oregon has no sales tax, which is its most distinctive feature. However, the state has relatively high income tax rates from 4.75% to 9.9%. Most employees also pay a 1% statewide transit tax. The lack of sales tax makes Oregon popular for major purchases, but the income tax impact on take-home pay is significant.

Oregon Tax Quick Facts

• State Income Tax: 4.75% to 9.9%
• State Sales Tax: None
• Local Taxes: No sales tax. Statewide transit tax of 0.1%. Some local taxes (Portland: +1.5-1.8% Multnomah/Metro taxes).
• Median Household Income: $70,084

How Your Oregon Paycheck Is Calculated

Your take-home pay in Oregon is calculated by subtracting the following from your gross pay:

• Federal Income Tax: Based on 2026 brackets (10% to 37%), after the standard deduction ($15,000 single / $30,000 married).
• Social Security Tax: 6.2% on the first $184,500 of earnings.
• Medicare Tax: 1.45% on all earnings, plus 0.9% on income above $200,000.
• Oregon State Tax: 4.75% to 9.9% on your taxable income.

Tips to Maximize Your Oregon Take-Home Pay

Consider maximizing pre-tax deductions like 401(k) contributions (up to $24,500 in 2026) and HSA contributions ($4,400 individual / $8,750 family). These reduce your taxable income, lowering both federal and state taxes. If you receive a large bonus, be aware it may be withheld at a flat 22% federal rate plus applicable state taxes.