Overview
Oregon levies a graduated income tax with four brackets, ranging from 4.75% to 9.90%. The top rate of 9.90% applies to income above $125,000 for single filers ($250,000 married). Even Oregon's lowest bracket rate of 4.75% is higher than many states' top rates. The 8.75% bracket covers most working-income earners ($10,750 to $125,000), making Oregon one of the highest-tax states for income.
Oregon's standard deduction is low: $2,745 for single filers and $5,495 for married filing jointly. Personal exemption credits are $236 per person. Oregon also allows a federal income tax deduction on the state return (up to $7,050 for 2026), which is a notable benefit that reduces the effective state tax rate. Oregon is one of only two states (along with Alabama) that currently offers this federal tax deduction.
Oregon Tax Brackets 2026
| Income Range | Tax Rate | Tax on Bracket |
|---|---|---|
| $0 - $4,300 | 4.75% | $204 |
| $4,301 - $10,750 | 6.75% | $435 |
| $10,751 - $125,000 | 8.75% | $9,997 |
| Over $125,001 | 9.9% | -- |
Standard Deductions and Exemptions
| Filing Status | Standard Deduction | Personal Exemption |
|---|---|---|
| Single | $2,745 | $236 |
| Married Filing Jointly | $5,495 | $472 |
| Head of Household | $4,420 | $236 |
| Per Dependent | — | $236 |
Understanding Oregon Taxes
Oregon has no sales tax — one of only five states without one. This is the most significant offset to Oregon's high income tax rates. The absence of sales tax means all purchases — including groceries, clothing, electronics, and vehicles — are tax-free at the point of sale. For consumers, especially those with moderate incomes, the sales tax savings can be substantial.
Oregon does not tax Social Security benefits at the state level. The state provides a retirement income credit for qualifying lower-income retirees, though the credit amount is modest. Military retirement pay received after October 1991 is not specifically exempt in Oregon, though a credit may offset some of the tax for qualifying veterans.
Property taxes in Oregon average approximately 0.87%, near the national average. Oregon's Measure 5 (1990) and Measure 50 (1997) limit property tax rates: $15 per $1,000 of real market value for education and $10 per $1,000 for general government. Assessed values are limited to 3% annual growth, similar to California's Proposition 13 but less extreme.
Oregon's cost-of-living index is approximately 113, about 13% above the national average. Portland is the most expensive metro, driven by housing costs, while Eugene, Salem, and Bend offer more moderate (though still above-average) costs. The state's natural beauty and lifestyle appeal continue to attract new residents despite the high income tax.
Oregon also levies a statewide Corporate Activity Tax (CAT) of 0.57% on business receipts over $1 million, which indirectly affects prices for consumers.
Filing Tips for Oregon
Deduct your federal income tax on your Oregon return — up to $7,050 — this can meaningfully reduce your state tax bill
Oregon's no-sales-tax benefit is most valuable for large purchases — buy vehicles, electronics, and appliances in Oregon to avoid the 8-10% sales tax you would pay in neighboring states
Residents near the Washington border can earn income tax-free in Washington and shop sales-tax-free in Oregon — a powerful combination
State Revenue Authority
For the most current tax information, visit the official Oregon tax authority:
oregon.gov/dorRelated Calculators
Frequently Asked Questions
For educational purposes only -- not financial or tax advice. Tax rates shown are based on 2026 data and may not reflect recent changes. Consult a tax professional for your specific situation.