The Oregon Earned Income Tax Credit (EITC) has also been enhanced, increasing the percentage of the federal credit that eligible taxpayers can claim on their state returns. This change aims to provide more support to low- and moderate-income families, potentially boosting refunds or reducing tax liabilities. Taxpayers should evaluate their eligibility to take full advantage of this credit. The 2019 tax rates and thresholds for both the Oregon State Tax Tables and Federal Tax Tables are comprehensively integrated into the Oregon Tax Calculator for 2019. This tool is freely available and is designed to help you accurately estimate your 2020 tax return.

Oregon income tax rate

Generally, penalty waiver requests may be granted one-time only, for a single tax period. If approved, waivers generally do not decrease penalties below the initial penalty assessment of 5% of the tax liability. The Division does not waive properly assessed interest, and all outstanding tax and interest must be paid in order to waive penalties. Each quarterly estimated payment must equal 25% or more of the current year’s estimated tax liability. The return(s) you are required to file will depend on your residency status within the jurisdictions. For those who itemize, deductions for medical expenses, mortgage interest, and charitable contributions can adjusting entries provide significant savings, though specific limitations apply.

Oregon Married (separate) Filer Standard Deduction

• Taxpayers who are blind or over 65 get an additional standard deduction of $1,200 for single filers and $1,000 per qualifying person for those filing a joint return.
• The personal exemption is $249 each per taxpayer and eligible dependent.
• A decade of bull market returns on Wall Street prompted people to cash in, selling stocks and other assets – thereby producing more taxable income for themselves.
• This tool is freely available and is designed to help you accurately estimate your 2024 tax return.
• The Oregon Free File program provides no-cost filing options for eligible taxpayers, streamlining the process for those who qualify.

The federal standard deduction for a Head of Household Filer in 2025 is $ 22,500.00. The federal standard deduction for a Head of Household Filer in 2022 is $ 19,400.00. The federal standard deduction for a Head of Household Filer in 2021 is $ 18,800.00. The proposed changes to federal tax code conformity in Oregon are a good example of a change that could significantly reshape the state’s tax code in the future, despite being framed as temporary technical adjustments. Tax burdens rose across the country as pandemic-era economic changes caused taxable income, activities, and property values to rise faster than net national product. Tax burdens in 2020, 2021, and 2022 are all higher than in any other year since 1978.

• The return(s) you are required to file will depend on your residency status within the jurisdictions.
• Instead of working with CPAs, attorneys and others separately, Start brings all of them under a single subscription.
• It’s about understanding the tax implications of your financial decisions, so you can minimize your taxes and, ultimately, keep more of your hard-earned money.
• Like the federal income tax, the Oregon income tax is progressive, meaning the rate of taxation increases as taxable income increases.
• Oregon has four marginal tax brackets, ranging from 4.75% (the lowest Oregon tax bracket) to 9.9% (the highest Oregon tax bracket).

Residency Status: Full-Year and Part-Year/Non-Resident Filers

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. The new Oregon child tax credit, known as the “Oregon Kid’s Credit,” is worth up to $1,000 and is completely refundable. That means eligible taxpayers can receive the credit back as a tax refund. Facts & Figures serves as a one-stop state tax data resource that compares all 50 states on over 40 measures of tax rates, collections, burdens, and more. Retail sales taxes are an essential part of most states’ revenue toolkits, responsible for 24 percent of combined state and local tax collections. Oregon has a 40 cents per gallon gas tax rate and a $3.33 cigarette excise tax rate.

Property Taxes by State and County, 2025

While just under 4% of Oregonians pay the state’s highest tax rate, they account for more than a third of the personal income taxes Oregon collects. For instance, single filers must file if their gross income exceeds a set level, while married couples filing jointly have oregon state income tax a different threshold. Returns are typically due by April 15th, unless an extension is granted. Accordingly, it’s critical to identify strategies that can reduce this tax.

Oregon: Federal Retirement Plan Thresholds in 2024

• The table below shows the full tax brackets and rates for the state income tax in Oregon.
• As mentioned above, these are pre-tax contributions, so not only do they help you save for the future, they also save you money on your taxes now.
• Oregon imposes an individual income tax on earnings for both residents and nonresidents within the state.
• Qualifying deductions might include an itemized deduction, the Oregon standard deduction, exemptions for dependants, business expenses, etc.
• Additionally, heirs could face big tax bills in Oregon since there is a state estate tax, but estates worth less than $1 million aren’t taxed.

If you purchase a product or register for an account through a link on our site, we may receive compensation. Whenever Congress creates new tax Bakery Accounting breaks, Oregon often ends up copying them automatically, without Oregon lawmakers having ever voted to approve them. The only way to stop these new tax breaks is for the Oregon legislature to vote to reject them — to “disconnect” from them.

Property Tax

You can save time and money by electronically filing your Oregon income tax directly with the . Benefits of e-Filing your Oregon tax return include instant submission, error checking, and faster refund response times. Most tax preparers can electronically file your return for you, or you can do it yourself using free or paid income tax software, like the examples listed below. The 2024 tax rates and thresholds for both the Oregon State Tax Tables and Federal Tax Tables are comprehensively integrated into the Oregon Tax Calculator for 2024. This tool is freely available and is designed to help you accurately estimate your 2025 tax return. The rate depends on the tax rate approved by local voters and the limits established by the Oregon Constitution.

• Income tax deductions are expenses that can be deducted from your gross pre-tax income.
• However, Oregon does have a vehicle use tax that applies to new vehicles purchased in Oregon and a vehicle privilege tax that applies to new vehicles purchased by Oregon residents outside of the state.
• Generally, penalty waiver requests may be granted one-time only, for a single tax period.
• In 1862, not long after joining the Union, Oregon enacted a tax on people of color.
• This means a lower-income family with just $20,000 of taxable income pays the same tax rate on its last dollar of income as a family making a quarter-million dollars.
• The federal standard deduction for a Head of Household Filer in 2023 is $ 20,800.00.
• You may file either of the taxpayer authorization forms through Revenue Online or submit a paper form.

When you consider not just income taxes, but all the taxes collected by state and local governments, the tax structure turns upside-down. While the personal income tax is based on a tax filer’s ability to pay, Oregonians pay other taxes not connected to how much someone can afford to pay. In addition to property taxes, they also pay excise taxes on things like gasoline, alcohol, and tobacco. When you add up all state and local taxes, Oregon’s tax structure is regressive – meaning Oregonians with low-incomes pay a higher share of their income in taxes than the richest Oregonians.