Oregon uses progressive tax brackets. Higher portions of pay are taxed at higher rates.
PayslipIQ provides educational information and estimated calculations only. It does not provide tax, legal, financial, accounting, employment, benefits, or payroll advice. PayslipIQ is not a CPA firm, law firm, financial advisor, payroll provider, or tax authority. Always verify your paycheck, deductions, withholdings, and tax position with your employer's payroll department, a qualified CPA, the IRS, your state tax authority, or another appropriately qualified professional. Calculations are estimates; your actual paycheck may differ based on factors specific to your employer, location, benefits elections, and personal tax situation.
How a Oregon paycheck is built
Every Oregon worker pays federal income tax, calculated on the W-4 you submitted to your employer using the IRS Publication 15-T tables. Federal income tax is followed by FICA: 6.2 percent Social Security up to the annual wage base, plus 1.45 percent Medicare on every dollar. The 0.9 percent Additional Medicare Tax applies once year-to-date wages cross $200,000 single or $250,000 married filing jointly.
Oregon adds progressive state income tax. The bracket you fall into depends on filing status and taxable income. Verify current brackets with the Oregon Department of Revenue.
Local taxes: Oregon has cities or counties that levy local income tax on top of state tax. Common examples are noted on the local-tax page.
Paid Family Leave: Oregon has a Paid Family Leave program with employee-paid premiums.
What changed recently in Oregon
- Statewide Transit Tax 0.1% (rate stable).
- Multnomah County Preschool tax progressive at high incomes.
- Paid Leave Oregon premium 0.6% total, employee 0.4%, employer 0.2%.
Oregon payroll quirks workers should know
- Statewide Transit Tax line on every Oregon paycheck.
- Multnomah County and Metro taxes only on Portland metro residents over income threshold.
- Paid Leave Oregon premium on every paycheck statewide.
Example breakdown
A hypothetical Oregon worker on a $65,000 annual salary, paid bi-weekly, single filer, no extra adjustments. Educational only, your real paycheck differs.
| Gross (bi-weekly) | $2500.00 |
| Federal income tax | -$250.00 |
| Social Security (6.2%) | -$155.00 |
| Medicare (1.45%) | -$36.25 |
| Oregon state tax | -$112.50 |
| Estimated take-home | $1946.25 |
Run your own numbers in the Oregon paycheck calculator.
Authoritative sources
Frequently asked questions
- Does Oregon have state income tax?
- Yes. Oregon uses progressive brackets. Verify with the Oregon Department of Revenue.
- Are there local income taxes in Oregon?
- Yes. Oregon has cities or counties that add local income tax on top of state tax. Check your specific city.
- Does Oregon have State Disability Insurance or Paid Family Leave premiums?
- Oregon has a Paid Family Leave program with employee-paid premiums.
- Does Oregon have daily-overtime rules?
- No. Oregon follows federal FLSA: 1.5x for hours above 40 in a workweek.
- What is FICA on a Oregon paycheck?
- FICA is federal: 6.2 percent Social Security up to the annual wage base, plus 1.45 percent Medicare on every dollar. The 0.9 percent Additional Medicare Tax applies above $200,000 single or $250,000 married filing jointly. FICA applies in every state.
- Where do I verify Oregon state tax withholding?
- The Oregon Department of Revenue (https://www.oregon.gov/dor/) is the authoritative source. For your specific paycheck, contact your employer's payroll team or a CPA.
- What is the Statewide Transit Tax on my Oregon paycheck?
- Oregon Statewide Transit Tax. 0.1% of all wages, funds public transit operations. Applies to every Oregon paycheck.
- Why are there extra Portland tax lines on my paycheck?
- Multnomah County Preschool for All (1.5% on high income) and Metro Supportive Housing Services (1% on high income). Both kick in above income thresholds and apply to residents and non-resident workers.