Estimate your combined federal and Oregon state income tax liability in under 60 seconds. Updated with the latest 2026 brackets, FICA rates, and Oregon transit tax.
Oregon uses a progressive income tax system with three brackets for the 2026 tax year. Unlike many states, Oregon does not impose a sales tax, making income tax the primary revenue mechanism for the state. This means Oregon's income tax rates tend to be higher than the national average, but residents benefit from no sales tax on everyday purchases.
Understanding your state bracket is essential for tax planning. Because Oregon's top rate of 9.9% kicks in at $250,000, most middle-income earners will find themselves in the 4.75% or 6.75% brackets. This progressive structure ensures lower-income residents pay proportionally less.
| Tax Rate | Income Range | Tax Owed |
|---|---|---|
| 4.75% | $0 - $18,400 | 4.75% of taxable income |
| 6.75% | $18,400 - $250,000 | $874 + 6.75% of amount over $18,400 |
| 9.9% | Above $250,000 | $16,507 + 9.9% of amount over $250,000 |
Source: Oregon Department of Revenue. Brackets shown for single filers, tax year 2025 (filed in 2026).
In addition to state income tax, Oregon imposes a statewide transit tax of 0.1% on all wages. This tax funds the Statewide Transportation Improvement Fund (STIF) and applies to all W-2 wages earned in Oregon, regardless of where you live. Self-employment income is also subject to this tax.
Federal income tax applies to all U.S. taxpayers regardless of state. The IRS adjusts brackets annually for inflation. Below are the 2026 federal brackets for single filers, applicable to income earned in 2025 and filed during the 2026 tax season.
| Rate | Single Filer Income Range |
|---|---|
| 10% | $0 - $11,925 |
| 12% | $11,925 - $48,475 |
| 22% | $48,475 - $103,350 |
| 24% | $103,350 - $197,300 |
| 32% | $197,300 - $250,525 |
| 35% | $250,525 - $626,350 |
| 37% | Above $626,350 |
The standard deduction for single filers in 2026 is $15,000. Married filing jointly doubles these bracket thresholds. These deductions reduce your taxable income before brackets are applied, so most taxpayers effectively pay less than their marginal rate suggests.
Source: IRS Revenue Procedure for tax year 2025.
FICA taxes are payroll taxes that fund Social Security and Medicare. These are separate from income tax and are calculated on gross wages before any deductions are applied. Employers match your contribution, so the total FICA rate is actually double what you see withheld.
| Tax | Rate | Wage Base |
|---|---|---|
| Social Security | 6.2% | First $168,600 |
| Medicare | 1.45% | All wages |
| Additional Medicare | 0.9% | Wages above $200,000 |
Self-employed individuals pay both the employee and employer portions (12.4% Social Security, 2.9% Medicare), known as self-employment tax. The calculator above uses employee-only rates for W-2 wage earners.
Oregon uses a tiered minimum wage system based on geographic region, recognizing the significant cost-of-living differences between the Portland metro area, standard regions, and rural parts of the state. These rates are adjusted annually by the Oregon Bureau of Labor and Industries.
| Region | Hourly Rate | Annual (Full-Time) |
|---|---|---|
| Standard (most of Oregon) | $15.95 | $33,176 |
| Portland Metro | $16.45 | $34,216 |
| Nonurban Counties | $14.70 | $30,576 |
Source: Oregon Bureau of Labor and Industries (BOLI).
The median household income in Oregon is approximately $76,000, placing it slightly above the national median. Oregon residents benefit from no state sales tax, but should plan for higher income tax rates compared to neighboring Washington, which has no state income tax but does charge sales tax. This makes cross-border tax planning particularly important for residents near the Portland-Vancouver metro area.
Starting a business in Oregon is straightforward and relatively affordable compared to other states. Oregon does not impose a separate franchise tax or LLC-specific tax, so your LLC income flows through to your personal tax return at Oregon's individual income tax rates.
| Item | Cost | Frequency |
|---|---|---|
| Articles of Organization Filing | $100 | One-time |
| Annual Report | $100 | Yearly |
| Registered Agent | $0 - $150/yr | Yearly |
| Business License (varies by city) | $50 - $200 | Yearly |
Source: Oregon Secretary of State, Business Division.
Oregon does not require an operating agreement by law, but having one is strongly recommended for multi-member LLCs. The annual report is due on the anniversary of your filing date and can be submitted online through the Oregon Secretary of State website.
Northwest Registered Agent handles all the paperwork for $39 + state fee. Includes free registered agent service for the first year, privacy protection, and compliance alerts.
Start My Oregon LLCOregon has three income tax brackets for 2026 (single filers): 4.75% on income up to $18,400, 6.75% on income from $18,400 to $250,000, and 9.9% on income above $250,000. Oregon does not have a state sales tax, so income tax rates are higher than average.
No, Oregon is one of only five states with no state sales tax. This means residents save money on everyday purchases but pay higher income tax rates. The other no-sales-tax states are Alaska, Delaware, Montana, and New Hampshire.
Oregon imposes a statewide transit tax of 0.1% on wages earned by all Oregon residents and nonresidents working in Oregon. This tax funds the Statewide Transportation Improvement Fund and applies to W-2 wages and self-employment income alike.
Oregon has a tiered minimum wage: $15.95/hour for the standard rate, $16.45/hour in the Portland metro area, and $14.70/hour in nonurban counties. Rates are set by BOLI and adjusted annually for inflation.
Filing an LLC in Oregon costs $100 with the Secretary of State. There is also a $100 annual report fee due each year. A registered agent can be yourself (free) or a professional service ($100-$150/year).