🇺🇸 Oregon Income Tax — 2026 UPDATE

Oregon Income Tax Rates & Brackets (Tax Year 2025 — Filed in 2026)

⚠️Informational only — not legal or tax advice.

Tax year covered: 2025 (returns filed in 2026)
Applies to: Income earned January 1 – December 31, 2025
Returns filed: January – April 2026
Last verified: February 19, 2026

Oregon State Income Tax

Table of Contents

Click any item below to jump to the relevant section

Quick Reference

Does Oregon have income tax? Yes
Tax structure: Progressive
Tax rates: 4.75% to 9.9%
Standard deduction (Single): $2,835
Standard deduction (Married Filing Jointly): $5,670
Local income tax: Yes — Metro and Multnomah County (see Part 3)
Official source: https://www.oregon.gov/dor/programs/individuals/pages/pit.aspx

Key Takeaways

  • Residents: Oregon residents pay state income tax on income from all sources, worldwide.
  • Non-residents: Non-residents pay Oregon income tax only on Oregon-source income.
  • Tax rates: Four progressive brackets from 4.75% to 9.9%; brackets differ between single and joint filers.
  • Federal tax subtraction: Oregon allows a subtraction for federal income tax paid, capped at $8,500 for 2025 (a unique feature among states).
  • Social Security: Oregon does not tax Social Security or Railroad Retirement Board benefits.
  • Local income tax: Metro and Multnomah County levy separate income taxes in the Portland area.
  • Reciprocity: Oregon has no income tax reciprocity agreements with other states.
  • Primary forms: Form OR-40 (full-year resident), Form OR-40-N (nonresident), Form OR-40-P (part-year resident).
  • Kicker credit: For 2025 returns, Oregon taxpayers claim a surplus kicker credit equal to 9.863% of their 2024 Oregon tax before credits.

Quick Questions About Oregon Income Tax

What is the Oregon income tax rate for 2025?
Oregon has a progressive income tax with four rates: 4.75%, 6.75%, 8.75%, and 9.9%. The rate that applies to your income depends on your filing status and taxable income level. See the complete bracket tables below.

Does Oregon have state income tax?
Yes. Oregon has had a personal income tax since 1930. The current four-bracket structure took effect for tax year 2020 following a legislative reduction of the lower three rates.

What are the income tax brackets in Oregon?
For Tax Year 2025, Oregon has four tax brackets for each filing status. Single filers reach the top 9.9% rate above $125,000; married joint filers reach it above $250,000. See the complete bracket tables below.

Is Social Security taxed in Oregon?
No. Oregon does not tax Social Security benefits or Railroad Retirement Board benefits. These amounts are subtracted from Oregon taxable income.

Does Oregon tax retirement income?
Oregon generally taxes pension income, 401(k) distributions, and IRA withdrawals. However, a retirement income credit is available for qualifying lower-income taxpayers, and federal government retirees who left service before October 1, 1991, may subtract all or part of their federal pension. Oregon does not tax Social Security.

Do I need to file an Oregon income tax return?
Full-year residents must file if gross income exceeds the threshold for their filing status (see “Who Must File” section). Non-residents must file if they had gross income from Oregon sources exceeding the filing threshold. Even if not required, you must file to claim a refund of Oregon tax withheld.

Source: Oregon Department of Revenue — https://www.oregon.gov/dor/programs/individuals/pages/file-requirements.aspx

Oregon Income Tax Rates and Brackets (Tax Year 2025 — Filed in 2026)

The following tax rates and brackets apply to income earned in 2025, reported on returns filed in 2026. Oregon’s brackets are indexed annually to changes in the Consumer Price Index.

Rate Snapshot
Tax Attribute Amount / Status
Lowest Tax Rate 4.75%
Highest Tax Rate 9.9%
Tax Structure Progressive (4 brackets)
Number of Brackets 4
State Income Tax Yes
Local Income Tax Yes (Metro, Multnomah County)
Standard Deduction (Single) $2,835
Standard Deduction (Married Filing Jointly) $5,670
Standard Deduction (Head of Household) $4,560
Personal Exemption Credit $256 per exemption (income limits apply)

Source: Oregon Department of Revenue — 2025 Tax Rate Charts
https://www.oregon.gov/dor/programs/individuals/Documents/Full-year%20resident%20tax%20tables.pdf

Oregon Income Tax Brackets 2025 — Single Filers
Taxable Income Tax Rate Tax Computation
$0 – $4,400 4.75% 4.75% of taxable income
$4,401 – $11,100 6.75% $209 + 6.75% of excess over $4,400
$11,101 – $125,000 8.75% $661 + 8.75% of excess over $11,100
Over $125,000 9.9% $10,627 + 9.9% of excess over $125,000
Oregon Income Tax Brackets 2025 — Married Filing Separately
Taxable Income Tax Rate Tax Computation
$0 – $4,400 4.75% 4.75% of taxable income
$4,401 – $11,100 6.75% $209 + 6.75% of excess over $4,400
$11,101 – $125,000 8.75% $661 + 8.75% of excess over $11,100
Over $125,000 9.9% $10,627 + 9.9% of excess over $125,000
Oregon Income Tax Brackets 2025 — Married Filing Jointly
Taxable Income Tax Rate Tax Computation
$0 – $8,800 4.75% 4.75% of taxable income
$8,801 – $22,200 6.75% $418 + 6.75% of excess over $8,800
$22,201 – $250,000 8.75% $1,323 + 8.75% of excess over $22,200
Over $250,000 9.9% $21,256 + 9.9% of excess over $250,000
Oregon Income Tax Brackets 2025 — Head of Household / Qualifying Surviving Spouse
Taxable Income Tax Rate Tax Computation
$0 – $8,800 4.75% 4.75% of taxable income
$8,801 – $22,200 6.75% $418 + 6.75% of excess over $8,800
$22,201 – $250,000 8.75% $1,323 + 8.75% of excess over $22,200
Over $250,000 9.9% $21,256 + 9.9% of excess over $250,000

Note: For taxable income under $50,000, use the tax tables in your return instructions. For $50,000 and above, use the tax rate charts above. Single and married filing separately filers use Chart S; married filing jointly, head of household, and qualifying surviving spouse filers use Chart J.

Source: Oregon Department of Revenue — 2025 Full-Year Resident Tax Tables
https://www.oregon.gov/dor/programs/individuals/Documents/Full-year%20resident%20tax%20tables.pdf
Oregon Department of Revenue — 2025 Part-Year and Nonresident Tax Rate Charts
https://www.oregon.gov/dor/programs/individuals/Documents/Part-year%20and%20nonresident%20tax%20rate%20charts.pdf

Statutory Authority

Oregon’s personal income tax is authorized under the following legal framework:

Constitutional Authority:

  • Oregon Constitution, Article IX, Section 1 — grants the Legislative Assembly the power to provide revenue sufficient for state needs.

Statutory Authority:

  • Oregon Revised Statutes (ORS) Chapter 316 — Personal Income Tax

Administrative Regulations:

Legislative History:

  • Oregon personal income tax first enacted: 1930
  • Current four-bracket structure with reduced lower rates: effective Tax Year 2020 (House Bill 3427, Student Success Act, 2019)
  • Brackets indexed to Consumer Price Index annually since 1993

This page compiles information directly from these statutory and regulatory authorities as implemented by the Oregon Department of Revenue.

Source: Oregon Legislature — https://www.oregonlegislature.gov/bills_laws/ors/ors316.html
Oregon Secretary of State Administrative Rules — https://secure.sos.state.or.us/oard/displayChapterRules.action?selectedChapter=61

Who Must File Oregon Income Tax

Full-Year Residents

Oregon law requires full-year residents to file a personal income tax return (Form OR-40) if their gross income exceeds the threshold for their filing status. The thresholds below apply for Tax Year 2025:

Oregon Filing Thresholds 2025 — Gross Income Requirements
Filing Status Gross Income Threshold
Single $2,835
Married Filing Jointly $5,670
Married Filing Separately $2,835
Head of Household $4,560
Qualifying Surviving Spouse $5,670

Note: These thresholds mirror the standard deduction amounts. If you can be claimed as a dependent on another person’s return, different thresholds apply — see 2025 Form OR-40 Instructions.

Even if below the threshold, you must file an Oregon return if you are entitled to a refund of Oregon income tax withheld from your wages.

Source: Oregon Department of Revenue — Do I Need to File?
https://www.oregon.gov/dor/programs/individuals/pages/file-requirements.aspx

Part-Year Residents

If you moved to or from Oregon during 2025, you are a part-year resident. You must file Form OR-40-P if your gross income from Oregon sources during your nonresident period, plus your income from all sources during your resident period, exceeds the threshold for your filing status.

Source: Oregon Department of Revenue — What Form Do I Use?
https://www.oregon.gov/dor/programs/individuals/pages/what-form.aspx

Non-Residents

Non-residents must file Form OR-40-N if they had gross income from Oregon sources exceeding the filing threshold for their filing status. Oregon-source income for non-residents includes:

  • Wages and salaries for work physically performed in Oregon
  • Business income from Oregon operations
  • Rental income from Oregon real property
  • Gains from sale of Oregon real property
  • Pass-through income from Oregon partnerships, LLCs, or S corporations
  • Oregon lottery winnings over $600 per ticket or play
  • Unemployment insurance benefits received because of Oregon employment

Non-residents are NOT taxed by Oregon on interest, dividends, or capital gains from investments unless derived from an Oregon business they own or that is passed through from an Oregon S corporation or partnership.

Source: Oregon Department of Revenue — Personal Income Tax FAQ
https://www.oregon.gov/dor/programs/individuals/pages/pit.aspx
Oregon Department of Revenue — What Form Do I Use?
https://www.oregon.gov/dor/programs/individuals/pages/what-form.aspx

What Income Is Taxable in Oregon

Oregon taxable income generally starts with federal adjusted gross income (AGI), then applies Oregon-specific additions and subtractions. Income included on your federal return is taxed by Oregon unless Oregon law provides an exception.

Fully Taxable Income

  • Wages and salaries from all sources (Oregon residents taxed on worldwide income)
  • Self-employment income
  • Business income
  • Investment income (interest, dividends, capital gains)
  • Rental income
  • 401(k) and traditional IRA distributions
  • Pension income (with exceptions noted below)
  • Partnership, S corporation, and LLC income
  • Gambling winnings (Oregon lottery winnings over $600 per ticket)
  • Unemployment compensation

Social Security Benefits

Oregon does NOT tax Social Security benefits or Railroad Retirement Board benefits. Any Social Security benefits included in your federal adjusted gross income are subtracted on your Oregon return. This subtraction is claimed directly on the Oregon return (no separate code needed).

Source: Oregon Department of Revenue — Personal Income Tax FAQ
https://www.oregon.gov/dor/programs/individuals/pages/pit.aspx

Federal Tax Liability Subtraction

Oregon offers a unique subtraction: residents may subtract a portion of their federal income tax paid. For Tax Year 2025, the maximum federal tax subtraction is $8,500 for single filers, heads of household, and married filing jointly; $4,250 for married filing separately.

This subtraction phases out at higher adjusted gross income levels. See Publication OR-17 for the phase-out table.

Source: Oregon Department of Revenue — 2025 Form OR-40 Instructions
https://www.oregon.gov/dor/forms/FormsPubs/form-or-40-inst_101-040-1_2025.pdf

Military Retirement Pay

Oregon taxes military retirement pay received by Oregon residents. There is no general exemption for military retirement income. However, Oregon does allow a military pay subtraction for active duty pay under specific conditions (see Military Personnel section in Part 3).

Oregon residents may also qualify for a retirement income credit if income is below certain thresholds.

Source: Oregon Department of Revenue — Military Personnel
https://www.oregon.gov/dor/programs/individuals/pages/military.aspx

U.S. Government Pension (Pre-October 1991 Service)

Oregon residents who receive a U.S. government pension for federal service before October 1, 1991, may subtract all or part of that pension on their Oregon return. The subtraction applies to the portion of the pension attributable to pre-October 1991 service. See Publication OR-17 for calculation details.

Source: Oregon Department of Revenue — Personal Income Tax FAQ
https://www.oregon.gov/dor/programs/individuals/pages/pit.aspx

Private and Public Pension Income

Oregon taxes private pension income (401(k) distributions, IRA withdrawals, pension payments from private employers) received by Oregon residents. Oregon PERS (Public Employees Retirement System) benefits and most public employee pensions are also taxable to Oregon residents.

Depending on age and income, a retirement income credit may be available to reduce the tax on retirement income. See “Tax Credits” section below.

Source: Oregon Department of Revenue — Personal Income Tax, Residency and Retirement Income
https://www.oregon.gov/dor/programs/individuals/pages/pit.aspx

Home Sale Gains

Oregon follows federal law on the gain from the sale of a primary residence. Oregon will not tax gains of $500,000 or less (or $250,000 for married filing separately) if you meet the federal qualifications.

Source: Oregon Department of Revenue — Personal Income Tax FAQ
https://www.oregon.gov/dor/programs/individuals/pages/pit.aspx

Standard Deduction and Exemptions

Oregon Standard Deduction (Tax Year 2025)
Oregon's standard deduction amounts are indexed annually to the Consumer Price Index.
Filing Status Standard Deduction
Single $2,835
Married Filing Jointly $5,670
Married Filing Separately $2,835 (or $0 if spouse itemizes)
Head of Household $4,560
Qualifying Surviving Spouse $5,670

Source: Oregon Department of Revenue — 2025 Form OR-40-P and OR-40-N
https://www.oregon.gov/dor/forms/FormsPubs/form-or-40-p_101-055_2025.pdf

Additional Standard Deduction — Age 65 or Older, or Blind

If you or your spouse were age 65 or older by January 1, 2026 (born before January 2, 1961), or were blind at the end of 2025, you are entitled to an additional standard deduction:

  • Single or Head of Household: $1,200 additional per qualifying person
  • All other filing statuses: $1,000 additional per qualifying person

Example: A single filer age 67 would have a standard deduction of $2,835 + $1,200 = $4,035.

Source: Oregon Department of Revenue — 2025 Form OR-40 Instructions
https://www.oregon.gov/dor/forms/FormsPubs/form-or-40-inst_101-040-1_2025.pdf

Oregon Itemized Deductions

Taxpayers may choose to itemize deductions using Oregon Schedule OR-A instead of taking the standard deduction. Oregon itemized deductions generally follow federal rules but with some differences. Oregon does not limit the deduction for state and local taxes the way federal law does.

Personal Exemption Credit

Oregon offers a personal exemption credit (not a deduction) for the taxpayer, spouse, and qualifying dependents:

  • Amount: $256 per exemption for Tax Year 2025
  • Income limit: The exemption credit is $0 if your federal AGI exceeds $100,000 (single or married filing separately) or $200,000 (married filing jointly, head of household, or qualifying surviving spouse with dependent child)
  • An additional exemption credit is available if you or your spouse have a severe disability, or if you have a qualifying child with a disability

Source: Oregon Department of Revenue — Tax Benefits for Families
https://www.oregon.gov/dor/programs/individuals/pages/credits.aspx

Oregon Income Tax Credits

Oregon offers standard credits (reduce tax but not below zero), carryforward credits, and refundable credits (may result in a refund even with no tax liability). The major individual income tax credits for Tax Year 2025 are:

1. Oregon Kicker Credit (Surplus Refund)

Oregon’s constitution requires the state to refund excess income tax revenues when actual revenues exceed projected revenues by 2% or more. For Tax Year 2025, Oregon taxpayers claim a kicker credit equal to 9.863% of their 2024 Oregon personal income tax before credits (excluding the credit for income taxes paid to another state on mutually-taxed income).

This is claimed directly on line 32 of Form OR-40. You may also elect to donate your kicker to the Oregon State School Fund.

Source: Oregon Department of Revenue — 2025 Form OR-40 Instructions
https://www.oregon.gov/dor/forms/FormsPubs/form-or-40-inst_101-040-1_2025.pdf

2. Oregon Earned Income Credit (EIC)

Oregon’s earned income credit is a percentage of the federal Earned Income Tax Credit (EITC). If you qualify for the federal EITC, you also qualify for the Oregon EIC:

  • With a dependent under age 3: Oregon EIC = 12% of your federal EITC
  • All other qualifying filers: Oregon EIC = 9% of your federal EITC

ITIN filers who cannot claim the federal EITC due to lack of an SSN valid for work may claim the Oregon EIC using Schedule OR-EIC-ITIN.

Eligibility: Must qualify for the federal EITC.
Source: Oregon Department of Revenue — Tax Benefits for Families
https://www.oregon.gov/dor/programs/individuals/pages/credits.aspx

3. Oregon Kids Credit

A refundable credit for taxpayers with qualifying young dependent children:

  • Full credit: $1,050 per child (up to 5 children), for children age 5 or younger at year-end
  • Income limit (Tax Year 2025): Full credit if modified AGI is $26,550 or less; credit phases out to zero at $31,550
  • Cannot be claimed by married filing separately filers
  • May be claimed even with zero taxable income (fully refundable)

Eligibility: Qualifying dependents age 5 or younger; must file Oregon return.
Source: Oregon Department of Revenue — Tax Benefits for Families
https://www.oregon.gov/dor/programs/individuals/pages/credits.aspx

4. Working Family Household and Dependent Care Credit (WFHDC)

A tax credit for low- to moderate-income families with qualifying dependent care expenses incurred to allow the taxpayer (and spouse if applicable) to work, look for work, or attend school. The amount varies based on income and qualifying expenses.

Eligibility: Must have qualifying dependent care expenses; income limits apply.
Source: Oregon Department of Revenue — Working Family Household and Dependent Care Credit
https://www.oregon.gov/dor/programs/individuals/pages/working-family-credit.aspx

5. Personal Exemption Credit

$256 per exemption (taxpayer, spouse, qualifying dependents) for Tax Year 2025. Income limits apply — see Standard Deduction & Exemptions section above.

Source: Oregon Department of Revenue — Tax Benefits for Families
https://www.oregon.gov/dor/programs/individuals/pages/credits.aspx

6. Credit for Income Taxes Paid to Another State

Oregon residents who pay income tax to another state on income that Oregon also taxes may claim a credit to avoid double taxation. This credit is limited to the amount of Oregon tax on the mutually-taxed income.

Oregon does not have reciprocal agreements with other states for income tax purposes. Residents must claim this credit to recover taxes paid to other states on the same income.

Source: Oregon Revised Statutes ORS 316.082
https://www.oregonlegislature.gov/bills_laws/ors/ors316.html

7. Oregon College Savings Plan (Embark) Credit

A refundable credit of up to $180 per account ($360 if married filing jointly) for contributions to an Oregon higher education savings plan account. The credit percentage depends on your AGI.

Note: For Tax Year 2026, the limit increases to $190 ($380 married filing jointly).

Source: Oregon Department of Revenue — Tax Benefits for Families
https://www.oregon.gov/dor/programs/individuals/pages/credits.aspx

8. Oregon ABLE Account Credit

A refundable credit of up to $180 ($360 if married filing jointly) for contributions to an Oregon ABLE (Achieving a Better Life Experience) account for a person with a disability. The credit percentage depends on AGI.

Source: Oregon Department of Revenue — Tax Benefits for Families
https://www.oregon.gov/dor/programs/individuals/pages/credits.aspx

9. Retirement Income Credit

Oregon residents may be entitled to a retirement income credit if they receive qualifying retirement income (pension, IRA, 401(k)) and meet income requirements. This credit partially offsets Oregon tax on retirement income for qualifying lower-income taxpayers. See Publication OR-17 for details.

Source: Oregon Department of Revenue — Publication OR-17
https://www.oregon.gov/dor/forms/FormsPubs/publication-or-17_101-431_2025.pdf

For a complete list of all Oregon tax credits: https://www.oregon.gov/dor/programs/individuals/pages/other-credits.aspx

Filing Deadlines

Regular Deadline

April 15, 2026 — Tax Year 2025 Oregon income tax returns are due and any tax owed must be paid by this date.

Oregon does not allow an extension of time to pay, even if the IRS allows one. Interest begins accruing on unpaid tax from April 16, 2026.

Extension Deadline

October 15, 2026 — Oregon automatically accepts the federal extension. File the “Extension filed” box on your Oregon return to indicate you filed for an extension.

Important: An extension gives you more time to file, NOT more time to pay. To avoid interest, pay all estimated tax owed by April 15, 2026.

Extension form: Publication OR-40-EXT
https://www.oregon.gov/dor/forms/Pages/default.aspx

Estimated Tax Payments

If you expect Oregon tax after credits and withholding to be $1,000 or more, you generally must make quarterly estimated tax payments. Quarterly due dates for Tax Year 2026 estimated payments:

  • Q1: April 15, 2026
  • Q2: June 15, 2026
  • Q3: September 15, 2026
  • Q4: January 15, 2027

Safe harbor provisions: No underpayment penalty if you pay:

  • At least 90% of your 2025 Oregon tax after all credits, OR
  • At least 100% of your 2024 Oregon tax after all credits (safe harbor)

Source: Oregon Department of Revenue — Publication OR-ESTIMATE
https://www.oregon.gov/dor/forms/FormsPubs/publication-or-estimate_101-026_2025.pdf
Oregon Department of Revenue — 2025 Form OR-10 Instructions
https://www.oregon.gov/dor/forms/FormsPubs/form-or-10-instructions_101-031-1_2025.pdf

Filing Options

Online Filing (E-File)

Direct File Oregon — Oregon’s free, interview-based filing portal for full-year residents:

  • Available through Revenue Online: https://revenueonline.dor.oregon.gov/tap
  • Free for all full-year Oregon residents filing original or amended returns
  • Note: Cannot be used for nonresident or part-year resident returns at this time

IRS Federal/State E-File Program — File both federal and Oregon returns simultaneously through approved tax software. Approved software list available at:
https://www.oregon.gov/dor/programs/individuals/pages/electronic-filing.aspx

Free File options: Several providers offer free e-filing for qualifying income levels. Details at:
https://www.oregon.gov/dor/programs/individuals/pages/electronic-filing.aspx

Paper Filing

Paper forms are available for download and mail:

Mailing addresses for Tax Year 2025 returns:

With payment — 2-D barcode on return:
Oregon Department of Revenue, PO Box 14720, Salem OR 97309-0463

Refund or no-tax-due — 2-D barcode on return:
Oregon Department of Revenue, PO Box 14710, Salem OR 97309-0460

Without 2-D barcode:
Tax-due: Oregon Department of Revenue, PO Box 14555, Salem OR 97309-0940
Refund/no-tax-due: Oregon Department of Revenue, PO Box 14700, Salem OR 97309-0930

Source: Oregon Department of Revenue — 2025 Form OR-40 Instructions
https://www.oregon.gov/dor/forms/FormsPubs/form-or-40-inst_101-040-1_2025.pdf

Penalties and Interest

Late Filing Penalty

Oregon imposes a penalty for filing late:

  • Generally 5% per month on unpaid tax for each month or fraction of a month the return is late
  • Maximum penalty: 25% of the unpaid tax

Late Payment Penalty

A separate penalty applies if tax is paid late. Contact the Oregon Department of Revenue for current penalty rates.

Interest on Unpaid Tax

Interest accrues on unpaid Oregon tax beginning April 16, 2026. Oregon uses a variable interest rate updated periodically.

Current interest rate: Check the Oregon Department of Revenue website at
https://www.oregon.gov/dor/programs/individuals/pages/payments.aspx

Underpayment of Estimated Tax

If you were required to make estimated tax payments and did not pay enough, Oregon may assess underpayment interest (Form OR-10). Penalties are avoided if estimated payments meet the safe harbor requirements (90% of current year tax or 100% of prior year tax).

Source: Oregon Revised Statutes ORS 314.400 — Penalties
https://www.oregonlegislature.gov/bills_laws/ors/ors314.html
Oregon Department of Revenue — 2025 Form OR-10 Instructions
https://www.oregon.gov/dor/forms/FormsPubs/form-or-10-instructions_101-031-1_2025.pdf

Special Considerations for Oregon Income Tax

Remote Workers and Multi-State Taxation

Living in Oregon, Working for an Out-of-State Employer

As an Oregon resident, you owe Oregon income tax on ALL income from all sources, regardless of where your employer is located or where the work is performed.

What this means:

  • Employer location does NOT determine your Oregon tax obligation
  • Income from employers based in California, Washington, or any other state is fully taxable in Oregon
  • Oregon law requires Oregon income tax withholding for Oregon resident employees, even when the employer is located elsewhere

Example: An Oregon resident working remotely from Portland for a Washington state company owes full Oregon income tax on all wages earned.

Source: Oregon Department of Revenue — Personal Income Tax
https://www.oregon.gov/dor/programs/individuals/pages/pit.aspx

Working in Oregon, Living in Another State

Non-residents who perform work physically inside Oregon owe Oregon income tax on the income earned from Oregon sources.

Physical Presence Rule: Income is sourced to Oregon based on where the work is physically performed. If you live in Washington but commute to Oregon to work, the wages from your Oregon workdays are taxable in Oregon.

Remote work for Oregon employers from outside Oregon: Non-residents who work remotely for an Oregon employer from their home state generally owe Oregon tax only on days they physically work inside Oregon. They do not owe Oregon tax on days worked outside Oregon.

Source: Oregon Department of Revenue — What Form Do I Use?
https://www.oregon.gov/dor/programs/individuals/pages/what-form.aspx

⚠️ Interstate Tax Risk Indicator

Remote workers involving Oregon commonly encounter dual taxation complications with specific states. Working with these states requires careful planning:

  • California — Aggressive residency auditing for extended work periods; California may tax Oregon residents on California-source income, requiring careful credit calculation
  • New York — Applies “convenience of the employer” rule that may tax Oregon residents on New York employer income even when working from Oregon
  • Washington — No state income tax but proximity creates frequent multi-state employment; Oregon residents working in Washington owe Oregon tax on all income
  • Connecticut, Massachusetts — Complex credit systems; telecommuter rule enforcement varies

Source: IRS Publication 505 — Tax Withholding and Estimated Tax
https://www.irs.gov/publications/p505

“Convenience of the Employer” Rule

Oregon does NOT apply a “convenience of the employer” rule. Oregon non-residents are taxed only on income from work physically performed in Oregon.

This means:

  • An Oregon resident working remotely for a New York employer is NOT subject to the New York convenience rule exemption — Oregon taxes all income
  • A Washington resident working remotely for an Oregon employer generally owes Oregon tax only on days physically working in Oregon

However, states such as New York and Connecticut DO apply their own convenience of the employer rule to income earned for employers based in those states, which can affect Oregon residents with New York or Connecticut employers.

Source: Oregon Revised Statutes ORS 316.127 — Nonresident Source Income
https://www.oregonlegislature.gov/bills_laws/ors/ors316.html

Reciprocal Agreements

Oregon has no income tax reciprocal agreements with other states. Oregon does not participate in any interstate income tax reciprocity arrangement. This means:

  • Oregon residents who work in another state are subject to tax in both Oregon (as residents) AND in the state where the work is performed
  • Oregon residents working in another state must file a non-resident return in that state and claim a credit on their Oregon return for taxes paid to the other state (Credit for Income Taxes Paid to Another State, ORS 316.082)
  • Non-residents who work in Oregon must pay Oregon income tax on Oregon-source wages, regardless of their home state’s reciprocity policies

Source: Oregon Revised Statutes ORS 316.082
https://www.oregonlegislature.gov/bills_laws/ors/ors316.html

Multi-State Tax Filing

When earning income in multiple states as an Oregon resident:

  1. File a full-year resident return in Oregon (Form OR-40) reporting all worldwide income
  2. File non-resident returns in other states where you earned income
  3. Claim a Credit for Income Taxes Paid to Another State on your Oregon return (Schedule OR-ASC or the return itself)

Key limitation: The Oregon credit for taxes paid to another state is limited to the amount of Oregon tax attributable to the mutually-taxed income.

Source: Oregon Department of Revenue — Publication OR-17
https://www.oregon.gov/dor/forms/FormsPubs/publication-or-17_101-431_2025.pdf

Tax Residency vs. Domicile

Understanding the difference between residency and domicile is critical for determining Oregon tax obligations.

Domicile Defined

Domicile is your permanent legal home — the place you consider your true home and intend to return to indefinitely.

Oregon considers you a resident for tax purposes if all of the following are true:

  • You think of Oregon as your permanent home
  • Oregon is the center of your financial, social, and family life
  • Oregon is the place you intend to come back to when you are away

Key principle: You can have only ONE domicile at a time. Temporary absences from Oregon do not change your domicile.

Source: Oregon Department of Revenue — What Form Do I Use? (Residency section)
https://www.oregon.gov/dor/programs/individuals/pages/what-form.aspx

Special-Case Oregon Residents

An Oregon-domiciled taxpayer may be treated as a nonresident for tax purposes if ALL of the following are true:

  • You maintained a permanent home outside Oregon for the entire tax year
  • You did not keep a home in Oregon during any part of the tax year
  • You spent fewer than 31 days in Oregon during the tax year

If you meet all three conditions, you are taxed only on Oregon-source income (not worldwide income).

Source: Oregon Department of Revenue — What Form Do I Use?
https://www.oregon.gov/dor/programs/individuals/pages/what-form.aspx

Common Conflict Scenarios

Scenario 1: Oregon resident temporarily living abroad If you qualify for the federal foreign earned income exclusion or housing exclusion as a U.S. resident living abroad, you may be taxed as a nonresident for Oregon purposes.

Scenario 2: Snowbird spending winters outside Oregon An Oregon resident spending winter months in Arizona or another state remains an Oregon resident as long as Oregon is still the center of their life and they have not established a new permanent domicile.

Scenario 3: Extended temporary work assignment out of state An Oregon resident on a temporary work assignment in another state remains an Oregon domiciliary. However, if they meet that other state’s statutory residency test (often 183+ days with a maintained abode), they may also owe taxes as a statutory resident in that state.

Source: Oregon Department of Revenue — 2025 Publication OR-17
https://www.oregon.gov/dor/forms/FormsPubs/publication-or-17_101-431_2025.pdf

Part-Year Residents

If you moved to or from Oregon during 2025, you file as a part-year resident using Form OR-40-P.

Income allocation:

  • Report all income earned while an Oregon resident from any source
  • Report income earned from Oregon sources while a non-resident of Oregon
  • Exclude non-Oregon income earned while living in another state

Moving TO Oregon:

  • Your Oregon residency begins on the date you establish domicile in Oregon
  • Report all income from that date forward
  • File a non-resident return in your former state for income earned before moving

Moving FROM Oregon:

  • Your Oregon residency ends on the date you establish domicile elsewhere
  • Report all income through that date, plus any ongoing Oregon-source income
  • File non-resident returns in new state(s) for income earned after moving

Standard deduction and exemptions: Prorate based on your Oregon percentage (Oregon income ÷ total income from all sources).

Form required: Form OR-40-P, Oregon Individual Income Tax Return for Part-Year Residents
Download: https://www.oregon.gov/dor/forms/FormsPubs/form-or-40-p_101-055_2025.pdf

Source: Oregon Department of Revenue — 2025 Form OR-40-P Instructions
https://www.oregon.gov/dor/forms/FormsPubs/form-or-40-n_or-40-p-inst_101-048-1_2025.pdf

Military Personnel

Servicemembers Civil Relief Act (SCRA)

Active-duty military members stationed in Oregon under military orders do NOT become Oregon residents solely because of those orders. Under the SCRA:

  • Servicemembers pay income tax to their state of legal residence (domicile), not to Oregon
  • Oregon does not impose income tax on military wages of non-resident servicemembers stationed in Oregon
  • A servicemember may elect to be treated as a resident of their duty station state OR their home state for income tax purposes

Military Spouses Residency Relief Act (MSRRA): Spouses of active-duty military members may maintain their own home state residency. Oregon will NOT tax a military spouse’s wages if:

  • The spouse moved to Oregon only to be with the servicemember stationed under military orders
  • Both the servicemember and spouse are domiciled outside of Oregon

Note: This exemption does not apply to spouses who are also members of the military.

Source: Oregon Department of Revenue — Military Personnel
https://www.oregon.gov/dor/programs/individuals/pages/military.aspx

Military Pay Subtractions for Oregon Residents

Oregon residents who are active-duty military members may qualify for a military pay subtraction (reducing Oregon taxable income) under specific circumstances, including:

  • Active-duty pay earned during the initial year of enlistment
  • Active-duty pay earned in the year of discharge
  • Active-duty National Guard pay (up to $6,000 for eligible Oregon National Guard duty)
  • Military pay earned for service performed outside Oregon (from August 1, 1990 forward, for periods of at least a year at an assignment outside Oregon)

The subtraction cannot exceed the total military pay included in federal AGI.

Source: Oregon Department of Revenue — Military Personnel
https://www.oregon.gov/dor/programs/individuals/pages/military.aspx
Oregon Administrative Rule OAR 150-316-0300
https://secure.sos.state.or.us/oard/displayChapterRules.action?selectedChapter=61

Military Retirement Pay

Oregon residents are subject to Oregon income tax on military retirement pay. Oregon does not provide a general exemption for military retirement income.

However, Oregon residents who receive a U.S. government pension for federal service before October 1, 1991, may subtract all or part of that pension attributable to pre-October 1991 service.

Oregon also provides a retirement income credit for qualifying lower-income retirees that may partially offset Oregon tax on retirement income.

Legislative note: Bills to exempt military retirement pay from Oregon income tax have been introduced in recent legislative sessions (e.g., HB 2050 in the 2025 session) but had not been enacted as of the date of this publication. Always verify current law at https://www.oregonlegislature.gov.

Source: Oregon Department of Revenue — Military Personnel
https://www.oregon.gov/dor/programs/individuals/pages/military.aspx
Oregon Department of Revenue — Publication OR-PIT-VET (Veterans income tax guide)
https://www.oregon.gov/dor/forms/FormsPubs/publication-or-pit-vet_101-009.pdf

Retirees

Social Security Benefits

Oregon does NOT tax Social Security benefits or Railroad Retirement Board (Tier I) benefits. Any Social Security income included in your federal adjusted gross income is subtracted on your Oregon return.

Source: Oregon Department of Revenue — Personal Income Tax FAQ
https://www.oregon.gov/dor/programs/individuals/pages/pit.aspx

Pension Income

Private Pensions and Public Pensions:
Oregon generally taxes pension income received by Oregon residents. This includes Oregon PERS (Public Employees Retirement System) benefits, federal civilian pensions, and private employer pensions.

Federal Pension Pre-October 1991 Service:
Oregon residents who receive a U.S. government pension for civilian service performed before October 1, 1991, may subtract all or part of that pension on their Oregon return. The subtraction applies to the portion attributable to pre-October 1991 service. The full pension is subtractable if all federal service was before October 1, 1991.

Retirement Income Credit:
Oregon offers a nonrefundable retirement income credit for qualifying taxpayers who receive pension income (including IRA and 401(k) distributions) and have income below certain thresholds. Amounts and eligibility are detailed in Publication OR-17.

Source: Oregon Department of Revenue — Personal Income Tax, Retirement Income
https://www.oregon.gov/dor/programs/individuals/pages/pit.aspx
Oregon Department of Revenue — Publication OR-17
https://www.oregon.gov/dor/forms/FormsPubs/publication-or-17_101-431_2025.pdf

401(k) and IRA Distributions

Oregon taxes distributions from 401(k) plans, traditional IRAs, and other tax-deferred retirement accounts. Oregon follows the same treatment as federal law — distributions are taxable when received.

Roth IRA: Qualified Roth IRA distributions are not taxable in Oregon (same as federal treatment).

Special Oregon Medical Subtraction

Oregon residents age 66 or older at year-end who have qualifying medical and dental expenses may qualify for the Special Oregon Medical Subtraction. Qualifying expenses are the same types as those deductible on Schedule OR-A. Depending on AGI, taxpayers may subtract up to $1,800 of those expenses (and an equal amount for an eligible spouse). See Publication OR-17 for calculation details.

Source: Oregon Department of Revenue — Publication OR-PIT-VET
https://www.oregon.gov/dor/forms/FormsPubs/publication-or-pit-vet_101-009.pdf

Students

College students attending school in Oregon do NOT automatically become Oregon residents for tax purposes.

You remain a non-resident if:

  • You maintain legal residence (domicile) in another state
  • Your presence in Oregon is temporary for educational purposes
  • You intend to return to your home state after graduation

You owe Oregon tax only on Oregon-source income:

  • Wages earned from working in Oregon
  • Oregon lottery winnings over $600 per ticket

Establishing Oregon residency as a student:
Students CAN become Oregon residents if they take affirmative steps to establish domicile: registering to vote in Oregon, obtaining an Oregon driver’s license, and otherwise making Oregon the center of their financial, social, and family life.

Source: Oregon Department of Revenue — Publication OR-17
https://www.oregon.gov/dor/forms/FormsPubs/publication-or-17_101-431_2025.pdf

Local Income Taxes

Oregon allows certain regional and county taxing authorities to levy personal income taxes. The following jurisdictions have local income taxes applicable to Tax Year 2025:

Metro Supportive Housing Services (SHS) Personal Income Tax

Jurisdiction: The Metro regional government encompasses most of the greater Portland area including portions of Clackamas, Multnomah, and Washington counties.

Rate: 1% marginal rate
Applies to:

  • Residents within the Metro boundary: all Oregon taxable income above the exemption threshold
  • Non-residents: income earned within the Metro district above the threshold

Tax Year 2025 Exemption Thresholds:

  • Single filers (and married filing separately): First $125,000 exempt; 1% on all taxable income above $125,000
  • Joint filers (including head of household and qualifying surviving spouse): First $200,000 exempt; 1% on all taxable income above $200,000

Example: A single filer with $200,000 in taxable income owes: ($200,000 − $125,000) × 1% = $750

Note: Starting Tax Year 2026, these thresholds will be adjusted annually for inflation.

Administration: Collected by the City of Portland Revenue Division on behalf of Metro.
Payment portal: Portland Revenue Online (PRO)
Annual return due: April 15, 2026
Estimated payments: Required if annual tax liability is expected to be $1,000 or more

Source: Metro — Supportive Housing Services Tax
https://www.oregonmetro.gov/what-metro-does/housing-and-homelessness/supportive-housing-services/pay-my-shs-taxes
Metro — SHS Tax FAQ
https://www.oregonmetro.gov/what-metro-does/housing-and-homelessness/supportive-housing-services/pay-my-shs-taxes/shs-taxes-faq

Multnomah County Preschool for All (PFA) Personal Income Tax

Jurisdiction: Multnomah County (includes Portland, Gresham, Troutdale, and surrounding communities)

Rates (Tax Year 2025):

For Single filers (and married filing separately):
Taxable Income Tax Rate
$0 – $125,000 0%
$125,001 – $250,000 1.5%
Over $250,000 3.0%
For Joint filers (married filing jointly, head of household, qualifying surviving spouse):
Taxable Income Tax Rate
$0 – $200,000 0%
$200,001 – $400,000 1.5%
Over $400,000 3.0%

Applies to:

  • Multnomah County residents: All Oregon taxable income
  • Non-residents: Only income attributable to Multnomah County sources

Taxable income base: Oregon taxable income (line 19 of Form OR-40 for full-year residents)

Important: Social Security is not subject to the PFA tax because it is not taxable in Oregon.

Administration: Collected by the City of Portland Revenue Division on behalf of Multnomah County.
Payment portal: Portland Revenue Online (PRO) — https://www.portland.gov/revenue
Annual return due: April 15, 2026
Estimated payments: Required if annual liability exceeds $1,000
Employer withholding: Mandatory for employees earning over $200,000 annually from Multnomah County employers

Rate change notice: Beginning January 1, 2027, the PFA tax rates will increase by 0.8% (1.5% becomes 2.3%; 3.0% becomes 3.8%).

Source: Multnomah County — Preschool for All Personal Income Tax
https://multco.us/info/multnomah-county-preschool-all-personal-income-tax
City of Portland — PFA Tax Administration
https://www.portland.gov/revenue/preschool-for-all-personal-income-tax

Important Note for Portland Metro Area Residents

Many residents of Multnomah County also live within the Metro district, meaning they may owe BOTH the Metro SHS tax and the Multnomah County PFA tax, in addition to the Oregon state income tax. These are separate taxes with separate returns filed with the City of Portland Revenue Division.

Employers located in Multnomah County or the Metro district are required to withhold both taxes for qualifying employees.

Combined local tax burden example: A Multnomah County resident with $300,000 in Oregon taxable income (single filer) would owe:

  • Metro SHS tax: ($300,000 − $125,000) × 1% = $1,750
  • Multnomah County PFA tax: ($250,000 − $125,000) × 1.5% + ($300,000 − $250,000) × 3% = $1,875 + $1,500 = $3,375
  • Total local taxes: $5,125 (in addition to Oregon state income tax)

Common Tax Filing Situations

Situation: “My employer is based in Washington (no income tax), so I don’t owe Oregon tax.”

Oregon law: Oregon residents owe Oregon income tax on all income regardless of employer location. Washington state having no income tax does not exempt Oregon residents from Oregon tax on wages earned working for Washington employers.
Source: Oregon Department of Revenue — https://www.oregon.gov/dor/programs/individuals/pages/pit.aspx

Situation: “I work remotely from my home in Oregon for a California company, so California should tax me.”

Tax law: As an Oregon resident, Oregon taxes all your income. California may also assert a right to tax income earned for California employers (particularly under California’s residency rules if you spent time in California). You would file as a non-resident in California for California-source days and claim an Oregon credit for taxes paid to California.
Source: Oregon Department of Revenue — Publication OR-17
https://www.oregon.gov/dor/forms/FormsPubs/publication-or-17_101-431_2025.pdf

Situation: “I moved to Oregon mid-year, so I only owe Oregon tax for half the year.”

Oregon law: Part-year residents owe Oregon tax on all income from the date they establish Oregon residency through year-end (plus any Oregon-source income during the non-resident period). The division is based on the actual residency period, not a simple 50% split.
Source: Oregon Department of Revenue — 2025 Form OR-40-P Instructions
https://www.oregon.gov/dor/forms/FormsPubs/form-or-40-n_or-40-p-inst_101-048-1_2025.pdf

Situation: “I live in Portland in Multnomah County and earn $150,000. Do I owe local taxes?”

Answer: You owe Multnomah County PFA tax of 1.5% on income above $125,000. For a single filer with $150,000 in Oregon taxable income: ($150,000 − $125,000) × 1.5% = $375 PFA tax. You do NOT owe Metro SHS tax because your income is below the Metro threshold only as a single filer with $150,000 — wait, you DO owe Metro SHS tax: ($150,000 − $125,000) × 1% = $250. Both taxes apply.
Source: Metro SHS FAQ — https://www.oregonmetro.gov/what-metro-does/housing-and-homelessness/supportive-housing-services/pay-my-shs-taxes/shs-taxes-faq
Multnomah County — https://multco.us/info/multnomah-county-preschool-all-personal-income-tax

Documentation Commonly Requested in Residency Audits

Oregon may audit residency determinations. The following documentation types are commonly requested:

Primary Residency Evidence:

  • Driver’s license (state of legal residence)
  • Voter registration
  • Vehicle registration
  • Professional licenses and state of licensure

Physical Presence Documentation:

  • Day-count logs (location by day)
  • Travel records (flights, hotel stays)
  • Credit card statements (geographic spending patterns)
  • Cell phone records (location data)

Property and Financial Ties:

  • Property ownership records
  • Homestead exemption filing
  • Utility bills (showing physical occupancy)
  • Bank account addresses

Employment Documentation:

  • W-2 forms (employer location, wages)
  • Employment contract (work location requirements)
  • Remote work agreement

Common Oregon Audit Triggers:

  • Claiming non-residency while maintaining an Oregon driver’s license
  • Owning Oregon property while filing as a non-resident
  • Spending close to 31 days in Oregon as a “special-case resident”
  • Family members remaining in Oregon while taxpayer claims non-residency
  • High-income individuals with recently changed residency

Burden of Proof: In Oregon residency disputes, the burden generally falls on the taxpayer to prove non-residency.

Source: Oregon Department of Revenue — Publication OR-17
https://www.oregon.gov/dor/forms/FormsPubs/publication-or-17_101-431_2025.pdf

Note: This section provides factual information about documentation types commonly requested. It does not constitute legal or tax advice.

Forms & Publications

Primary Tax Return Forms

Full-Year Resident Return:

Non-Resident Return:

Part-Year Resident Return:

All forms library: https://www.oregon.gov/dor/forms/Pages/default.aspx

Common Schedules and Attachments

Schedule OR-ASC — Report Oregon additions, subtractions, and credits (full-year residents)
Schedule OR-ASC-NP — Same as OR-ASC for nonresidents and part-year residents
Schedule OR-A — Oregon itemized deductions
Schedule OR-EIC — Oregon earned income credit
Schedule OR-EIC-ITIN — Oregon EIC for ITIN filers
Schedule OR-WFHDC — Working Family Household and Dependent Care Credit
Form OR-10 — Underpayment of Oregon estimated tax (penalty calculation)
Form OR-18-WC — Withholding on sale of Oregon real property by nonresidents
Form OR-HOME — First-Time Home Buyer Savings Account (FTHBSA)

Withholding Forms

Extension and Payment Forms

Estimated Tax Forms

Military and Veterans Forms

Key Publications

Publication OR-17 — Oregon Individual Income Tax Guide — comprehensive reference covering all aspects of Oregon personal income tax
Publication OR-ESTIMATE — Estimated Tax Guide for Oregon
Publication OR-40-FY Instructions — 2025 Full-Year Resident Instructions
Publication OR-CODES — Codes for Schedule OR-ASC additions, subtractions, and credits
Publication OR-PIT-VET — Oregon Income Tax Guide for Veterans

All publications: https://www.oregon.gov/dor/forms/Pages/default.aspx

Local Tax Forms (Metro and Multnomah County)

Both local income taxes are filed through the Portland Revenue Online (PRO) system, administered by the City of Portland Revenue Division:

Where to Submit Paper Returns

With payment — if return has 2-D barcode:
Oregon Department of Revenue
PO Box 14720
Salem OR 97309-0463

Refund or no-tax-due — if return has 2-D barcode:
Oregon Department of Revenue
PO Box 14710
Salem OR 97309-0460

With payment — no 2-D barcode:
Oregon Department of Revenue
PO Box 14555
Salem OR 97309-0940

Refund or no-tax-due — no 2-D barcode:
Oregon Department of Revenue
PO Box 14700
Salem OR 97309-0930

Source: Oregon Department of Revenue — 2025 Form OR-40 Instructions
https://www.oregon.gov/dor/forms/FormsPubs/form-or-40-inst_101-040-1_2025.pdf

Official Oregon Income Tax Resources

All information on this page is compiled exclusively from official government sources.

Oregon Department of Revenue

Main Website: https://www.oregon.gov/dor/Pages/index.aspx
Personal Income Tax Overview: https://www.oregon.gov/dor/programs/individuals/pages/pit.aspx
Do I Need to File?: https://www.oregon.gov/dor/programs/individuals/pages/file-requirements.aspx
What Form Do I Use?: https://www.oregon.gov/dor/programs/individuals/pages/what-form.aspx
Tax Rate Tables (2025): https://www.oregon.gov/dor/programs/individuals/Documents/Full-year%20resident%20tax%20tables.pdf
Tax Rate Charts (Part-Year/Nonresident): https://www.oregon.gov/dor/programs/individuals/Documents/Part-year%20and%20nonresident%20tax%20rate%20charts.pdf
Oregon Tax Credits: https://www.oregon.gov/dor/programs/individuals/pages/other-credits.aspx
Tax Benefits for Families: https://www.oregon.gov/dor/programs/individuals/pages/credits.aspx
Subtractions: https://www.oregon.gov/dor/programs/individuals/pages/subtractions.aspx
Additions: https://www.oregon.gov/dor/programs/individuals/pages/additions.aspx
Military Personnel: https://www.oregon.gov/dor/programs/individuals/pages/military.aspx
Electronic Filing: https://www.oregon.gov/dor/programs/individuals/pages/electronic-filing.aspx
Forms Library: https://www.oregon.gov/dor/forms/Pages/default.aspx
Revenue Online Portal: https://revenueonline.dor.oregon.gov/tap
Income Tax Calculator: https://revenueonline.dor.oregon.gov/tap?Link=PITCalculator
Withholding Calculator: https://www.oregon.gov/dor/programs/businesses/pages/withholding.aspx

Oregon Tax Code and Regulations

Oregon Revised Statutes Chapter 316 (Personal Income Tax): https://www.oregonlegislature.gov/bills_laws/ors/ors316.html
Oregon Revised Statutes Chapter 314 (Administration of Tax Laws): https://www.oregonlegislature.gov/bills_laws/ors/ors314.html
Oregon Administrative Rules — Division 316: https://secure.sos.state.or.us/oard/displayChapterRules.action?selectedChapter=61
Oregon Legislature: https://www.oregonlegislature.gov
Oregon Administrative Rules Database: https://secure.sos.state.or.us/oard/index.action

Local Tax Resources

Metro SHS Tax — Pay My Taxes: https://www.oregonmetro.gov/what-metro-does/housing-and-homelessness/supportive-housing-services/pay-my-shs-taxes
Metro SHS Tax FAQ: https://www.oregonmetro.gov/what-metro-does/housing-and-homelessness/supportive-housing-services/pay-my-shs-taxes/shs-taxes-faq
Multnomah County PFA Tax: https://multco.us/info/multnomah-county-preschool-all-personal-income-tax
City of Portland Revenue Division (administers Metro and PFA taxes): https://www.portland.gov/revenue
Portland Revenue Online (PRO): https://www.portland.gov/revenue/portland-revenue-online-pro

Contact Information

Oregon Department of Revenue
Phone: 503-378-4988 or 800-356-4222 (toll-free)
TTY: We accept all relay calls
Fax: 503-945-8738
Email: questions.dor@dor.oregon.gov (English)
Email: preguntas.dor@dor.oregon.gov (Spanish)
Main Office: 955 Center St NE, Salem, OR 97301-2555

Phone Hours: Monday–Friday, 7:30 a.m. to 5 p.m.
Phone lines closed Thursdays 9–11 a.m. and on holidays.

Regional Offices: Bend, Eugene, Gresham, Medford, Portland, and Salem
Office locations and hours: https://www.oregon.gov/dor/Pages/map.aspx

Mailing Addresses: https://www.oregon.gov/dor/pages/mail.aspx

Taxpayer Advocate

Oregon Office of the Taxpayer Advocate
Phone: 503-945-8700
TTY: We accept all relay calls
Email: taxpayer.advocate@dor.oregon.gov

The Taxpayer Advocate assists when you believe you are not being treated fairly by the Department of Revenue or have a tax problem that has not been resolved through normal channels.

Free Tax Assistance

Direct File Oregon — Free, interview-based online filing for full-year Oregon residents
https://www.oregon.gov/dor (click “Revenue Online” then “Direct File Oregon”)

VITA (Volunteer Income Tax Assistance):
Free tax help for people who generally make $67,000 or less, persons with disabilities, and limited English-speaking taxpayers.
Find locations: https://www.irs.gov/vita

TCE (Tax Counseling for the Elderly):
Free tax help for people 60 and older.
Find locations: https://www.irs.gov/tce

AARP Tax-Aide:
Free tax preparation for taxpayers with low-to-moderate income, with special attention to those 50 and older.
Find locations: https://www.aarp.org/money/taxes/aarp_taxaide/

MFS-CASH Oregon:
Free tax preparation assistance including for EIC and ITIN filers.
https://cashoregon.org/

Where to Check for Updates

Current Tax Rate Tables (2025):
https://www.oregon.gov/dor/programs/individuals/Documents/Full-year%20resident%20tax%20tables.pdf
Updated annually, typically published December of the prior tax year.

Forms Library:
https://www.oregon.gov/dor/forms/Pages/default.aspx
New forms for Tax Year 2025 were available December 2025.

Legislative Changes:

Administrative Guidance:

Email Subscription (Oregon DOR updates):
https://public.govdelivery.com/accounts/ORDOR/subscriber/new

Note: This page will be reviewed and updated in January 2027 for Tax Year 2026. For real-time updates, always consult the official Oregon Department of Revenue website at https://www.oregon.gov/dor.

Information Verification Log

Information Verification Log — Oregon Income Tax
Information Type Source Last Verified
Tax rates and brackets Oregon DOR — 2025 Full-Year Resident Tax Tables PDF — https://www.oregon.gov/dor/programs/individuals/Documents/Full-year%20resident%20tax%20tables.pdf February 19, 2026
Standard deduction amounts Oregon DOR — 2025 Form OR-40-N — https://www.oregon.gov/dor/forms/FormsPubs/form-or-40-n_101-048_2025.pdf February 19, 2026
Personal exemption credit Oregon DOR — Tax Benefits for Families — https://www.oregon.gov/dor/programs/individuals/pages/credits.aspx February 19, 2026
Filing deadlines Oregon DOR — 2025 Form OR-40 Instructions — https://www.oregon.gov/dor/forms/FormsPubs/form-or-40-inst_101-040-1_2025.pdf February 19, 2026
Kicker credit percentage Oregon DOR — 2025 Form OR-40 Instructions — https://www.oregon.gov/dor/forms/FormsPubs/form-or-40-inst_101-040-1_2025.pdf February 19, 2026
Federal tax subtraction limit Oregon DOR — 2025 Form OR-40 Instructions — https://www.oregon.gov/dor/forms/FormsPubs/form-or-40-inst_101-040-1_2025.pdf February 19, 2026
Social Security exemption Oregon DOR — Personal Income Tax Overview — https://www.oregon.gov/dor/programs/individuals/pages/pit.aspx February 19, 2026
Statutory authority Oregon Revised Statutes Chapter 316 — https://www.oregonlegislature.gov/bills_laws/ors/ors316.html February 19, 2026

Tax Glossary

Adjusted Gross Income (AGI):
Total income minus specific deductions allowed by the Internal Revenue Code (e.g., IRA contributions, student loan interest, self-employment tax). Used as the starting point for Oregon taxable income calculations.

Oregon Taxable Income:
Federal adjusted gross income, adjusted by Oregon additions and subtractions, minus the Oregon standard deduction (or itemized deductions) and modified by the federal tax liability subtraction. This is the income on which Oregon tax rates are applied.

Resident (Oregon):
An individual who considers Oregon their permanent home, where Oregon is the center of their financial, social, and family life, and where they intend to return when away.

Non-Resident:
An individual who does not meet Oregon’s residency requirements but earns income from Oregon sources.

Part-Year Resident:
An individual who moved into or out of Oregon during the tax year.

Special-Case Oregon Resident:
An Oregon domiciliary who is taxed as a nonresident because they maintained no Oregon home, spent fewer than 31 days in Oregon, and their permanent home was outside Oregon for the entire year.

Domicile:
Your permanent legal home — the place you intend to return to indefinitely. You can have only one domicile at a time.

Federal Tax Liability Subtraction:
Oregon’s unique deduction allowing residents to subtract a portion of their federal income tax paid, capped at $8,500 for Tax Year 2025 (subject to AGI phase-out).

Kicker (Oregon Surplus):
Oregon’s constitutional requirement to refund excess state income tax revenues to taxpayers when actual revenues exceed the biennial forecast by 2% or more. For Tax Year 2025, the kicker credit is 9.863% of a taxpayer’s 2024 Oregon income tax before credits.

Withholding:
Tax deducted from your paycheck by your employer and remitted to the Oregon Department of Revenue on your behalf. Oregon uses Form OR-W-4 to determine withholding amounts.

Personal Exemption Credit:
A dollar-for-dollar credit against Oregon tax of $256 per exemption (taxpayer, spouse, and qualifying dependents) for Tax Year 2025. Not available at higher income levels.

Reciprocity:
An agreement between states where residents working across state lines pay income tax only to their state of residence. Oregon has no such agreements for income tax purposes.

Tax Credit:
A dollar-for-dollar reduction in tax owed. Example: A $500 credit reduces Oregon tax by $500.

Tax Deduction:
Reduces taxable income. Example: The $2,835 standard deduction reduces Oregon taxable income, which then reduces tax owed.

Filing Status:
Category determining which tax rates and standard deduction apply. Oregon uses the same filing statuses as federal law: Single, Married Filing Jointly, Married Filing Separately, Head of Household, and Qualifying Surviving Spouse.

Oregon EIC:
Oregon’s Earned Income Credit — a percentage of the federal EITC available to Oregon filers who qualify for the federal credit.

Oregon Kids Credit:
A refundable Oregon credit of up to $1,050 per qualifying child age 5 or younger for Tax Year 2025, available to taxpayers with modified AGI up to $31,550.

Metro SHS Tax:
The Metro Supportive Housing Services personal income tax — a 1% tax on Oregon taxable income above $125,000 (single) or $200,000 (joint) for residents of the Metro regional government district in the greater Portland area.

PFA Tax:
The Multnomah County Preschool for All personal income tax — rates of 1.5% and 3.0% on Oregon taxable income above specified thresholds for Multnomah County residents and non-residents with Multnomah County-source income.

Update History

February 2026 — Initial Publication

  • Published comprehensive Oregon income tax guide for Tax Year 2025
  • Tax brackets verified from official 2025 Oregon DOR tax rate charts (Rev. 12-30-25)
  • Standard deductions verified from 2025 Form OR-40-N and OR-40-P
  • Kicker credit percentage (9.863%) verified from 2025 Form OR-40 Instructions

Verification Schedule:

  • Annual Update: January (new tax rates and indexed bracket thresholds)
  • Mid-Year Review: June (legislative changes)
  • Continuous Monitoring: Emergency tax legislation, disaster relief measures
  • Source Link Check: Quarterly (all .gov URLs verified functional)

Last comprehensive update: February 19, 2026
Next scheduled review: January 2027

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