Oregon Department of Revenue : Welcome Page : State of Oregon

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 Accounting For Architects to pay a lower overall rate on their combined income with wider tax brackets for joint filers. A tax credit allows taxpayers to reduce the amount of taxes they are required to pay.

What is the sales tax in Oregon?

Single filers with an income between $70,000 and $100,000 can receive up to a $180 tax credit when contributing at least $720. Meanwhile, joint filers in the same income bracket can receive up to $360 when contributing at least $1,440. All filers can get their tax using the personal income tax calculator instead of using the tax rate charts or tables in the return instructions. Form OR-40-P filers will need to multiply the tax by their Oregon percentage on their return.

• Those taxpayers can view and download their Form 1099-G through Revenue Online.
• Understanding the latest EITC rates and thresholds is crucial for taxpayers who wish to maximize their potential credit and accurately plan their finances.
• You’ll also need your bank account and routing numbers if you want to set up direct deposit for your refund.
• View how much tax you may pay in other states based on the filing status and state entered above.
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This allows the wealthy to avoid taxes for years, and sometimes forever. The tax system both reflects the prevailing economic forces of its time and helps shape economic outcomes. In recent decades, income inequality in Oregon has climbed to historic levels. And at the federal level, tax rates for the superrich have collapsed. Visit the official state government’s website to pay individual income tax online. If compiling and filing your taxes is an area you struggle with, a financial advisor can help.

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If you earn income in Oregon, you know you’ll lose something to taxes. It’s important to understand your state’s income tax and how it will impact your financial future, not least because that knowledge will empower you to take action to reduce your tax bill today. Tax-Rates.org provides easy access to five of the most commonly used Oregon income tax forms, in downloadable PDF format. For all of the tax forms we provide, visit our Oregon tax forms library or the ‘s tax forms page. You’ll need the same documentation to use Direct File Oregon, along with the login information for IRS Direct File or a copy of your federal tax return to import that information. The IRS partners with several third-party tax preparation software companies to make their software available for free, but only to people below a certain income level — the cutoff this year is $84,000.

eFile your Oregon tax return now

• The 2025 tax rates and thresholds for both the Oregon State Tax Tables and Federal Tax Tables are comprehensively integrated into the Oregon Tax Calculator for 2025.
• The lack of sales and use taxes is also beneficial to retirees, who can see savings here.
• Using deductions is an excellent way to reduce your Oregon income tax and maximize your refund, so be sure to research deductions that you mey be able to claim on your Federal and Oregon tax returns.
• Income taxes are taxes imposed on individuals or entities that earn income.
• As working families across Oregon struggle with rising costs and meager wages, Oregon is on course to send massive tax rebates to the richest Oregonians.
• The thing to note is that it doesn’t take much income to get to the next-to-highest tax bracket of 8.75 percent.

In 2025, the Oregon state income tax rates range from 4.75% to 9.90%. The amount of income tax a person or entity pays depends on their income level. The two most popular tax software packages are H&R Block At Home, sold by the H&R Block tax preparation company, and TurboTax Federal & State, sold by the Intuit software company. Both companies produce multiple editions for simple to very complex tax returns, so be sure to carefully compare the features offered by each package. In the mid-1970s, corporations contributed almost 19 percent of all income taxes collected by the state of Oregon. This relative decline of the corporate income tax has occurred despite an environment of strong corporate profits.

WalletHub determined its rankings by comparing metrics like affordability, quality of life and health care. WalletHub Analyst Chip Lupo said that taxes and cost of living are among the biggest impacts on retirees. Oregon also ranked 32nd in quality of life and 26th in health care.

Federal Widower Filer Tax Tables

The department recommends filing electronically and requesting direct deposit. Only those who itemized deductions on their tax year 2023 federal income tax return will need a Form 1099-G to file their tax year 2024 return. Those taxpayers can view and download their Form 1099-G through Revenue Online. Those taxpayers can view and download their Form 1099-G through Revenue Online. Capital gains in Oregon are subject to the normal personal income tax rates. That means capital gains can be taxed at a rate as high as 9.9%, depending on your total income.

• We’ve built a platform to give everyone access to the tax and wealth-building tools typically reserved for wealthy individuals with a team of accountants and lawyers.
• Both companies produce multiple editions for simple to very complex tax returns, so be sure to carefully compare the features offered by each package.
• Some Oregon citizens might be eligible for deferral of property taxes on their residences.
• Capital gains in Oregon are subject to the normal personal income tax rates.

The kicker is not the result of tax filers overpaying their taxes; it’s a forecasting error. As of this writing, state economists expect a record-shattering $3.9 billion “kicker” rebate. If this holds, the richest 1 percent of Oregonians will get a rebate of $42,000 on average, while the lowest-paid workers will get about $60 on average. Lawmakers need to recognize the damage caused by growing income inequality and enact policies that lift up all Oregonians, not just the richest. One way to do so is to not wait to tax capital gains – the profits from the sale of stocks, bonds, and other assets. Under current law, workers see their income taxed on a regular basis, while holders of capital assets don’t pay taxes on their gains until they sell.

That was the case with the massive overhaul of the federal tax code under the Trump administration and in two stimulus packages in response to the pandemic. Tax Day will arrive a month later than usual this year, another consequence of the COVID-19 pandemic. With additional time to file your return, you may want to spend a few minutes reflecting on the tax system.

Income Tax Brackets, Rates, Income Ranges, and Estimated Taxes Due

This reduces the taxable income for the year, potentially leading to lower tax liabilities. Additionally, the funds in these retirement accounts grow tax-deferred, meaning that taxes on investment gains are not paid until the money is withdrawn during retirement, ideally at a lower tax rate. Oregon taxpayers can subtract from their state taxable income some or all of the federal tax they paid. When calculating personal income taxes, Oregon relies heavily on the federal income tax structure. Oregon taxable income is equal to federal taxable income, with a limited number of additions and subtractions.