Estimate your Oregon state income tax plus combined federal and OR state tax for 2026. 9.9% top rate.
Oregon has progressive income tax from 4.75% to 9.9%, with the top rate on income over $125,000 (single). Oregon has no state sales tax, which partially offsets its high income tax. Oregon's unique kicker credit rebates excess revenue to taxpayers. Use the calculator above to estimate your combined federal and Oregon state income tax for 2026. State tax figures use a simplified rate — for precise Oregon state tax calculations, consult the Oregon Department of Revenue or a licensed tax professional.
Oregon uses a 9.9% top rate state income tax structure. Like most states, Oregon starts its calculation from your federal Adjusted Gross Income (AGI), then applies state-specific adjustments — subtracting income Oregon excludes from taxation (such as certain pension or Social Security income) and adding back any income Oregon taxes that the federal government does not. After adjustments, the Oregon standard deduction is applied, then the 9.9% top rate is applied to arrive at state taxable income.
Oregon income tax is collected through employer paycheck withholding for W-2 employees and through quarterly estimated payments for self-employed residents and those with significant non-wage income. The Oregon state return is generally due April 15, aligned with federal returns. Part-year residents and nonresidents who earn income sourced in Oregon must also file a Oregon return for that income portion.
Your Oregon state income taxes are deductible on your federal Schedule A as part of the SALT (State and Local Tax) deduction, capped at $40,400 in 2026 under OBBBA. At the 22% federal bracket, paying $3,199 in Oregon state income tax generates approximately $703 in federal tax savings, reducing the true net cost of your Oregon taxes to about $2,496 for itemizing taxpayers.
Jordan is a single filer earning $75,000 in Oregon. This shows how federal and Oregon state income tax are calculated together.
Moving to a no-income-tax state (Texas, Florida, Nevada, or Wyoming) would save Jordan approximately $3,199/year ($266/month) in state income taxes. However, no-income-tax states often fund services through higher property taxes, sales taxes, or other fees, so a complete comparison requires evaluating all taxes together, not just income tax.
Oregon Tax Rate and Annual Filing
Oregon residents earning above the state filing threshold must file a Oregon income tax return annually, typically due April 15. The 9.9% top rate applies after Oregon-specific deductions and any state tax credits. Employers withhold Oregon state income tax from employee paychecks throughout the year using Oregon withholding tables, and any balance owed or refund due is settled when the annual state return is filed. Self-employed Oregon residents make quarterly estimated payments to the state in addition to their federal quarterly estimated tax payments.
Federal SALT Deduction Reduces Net State Tax Cost
State income taxes paid in Oregon reduce your federal taxable income through the SALT deduction (capped at $40,400 in 2026 under OBBBA). For a Oregon resident in the 22% federal bracket paying $3,199 in state income tax, the SALT deduction recovers approximately $703 in federal taxes, so the true after-federal-benefit cost of Oregon state income tax is about $2,496. This offset only benefits taxpayers who itemize deductions on federal Schedule A rather than taking the standard deduction.
Total Tax Burden: State Income Tax Is One Piece
State income tax is one component of your total tax burden in Oregon. Property taxes, local income taxes (in some Oregon cities and counties), and state and local sales taxes also contribute to your overall cost of living. When comparing Oregon to other states, evaluate all tax types together rather than income tax in isolation. Use the calculator above to see your combined federal and Oregon state effective rate at your specific income level.
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Oregon has a 9.9% top rate state income tax for 2026. Oregon has progressive income tax from 4.75% to 9.9%, with the top rate on income over $125,000 (single). Oregon has no state sales tax, which partially offsets its high income tax. Oregon's unique kicker credit rebates excess revenue to taxpayers. The state income tax is calculated separately from federal income tax and is paid through payroll withholding or quarterly estimated payments.
Oregon has its own state standard deduction separate from the federal standard deduction ($15,750 single, $31,500 MFJ in 2026). For precise Oregon state deduction amounts, consult the Oregon Department of Revenue or a state tax professional.
Oregon's 9.9% top rate state income tax can be compared to other states using our state tax calculator above. The U.S. average top marginal state income tax rate is approximately 5-6%. Nine states have no income tax at all (Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, Wyoming), while California has the highest at 13.3%.
Oregon offers state tax credits and deductions that may reduce your state tax liability. Common state credits include earned income credits, child tax credits, and credits for the elderly. Consult the Oregon Department of Revenue website or a licensed tax professional for credits specific to your situation and income level.
Use the calculator above. Enter your income and OR is pre-selected as your state. The calculator computes your 2026 federal income tax using the One Big Beautiful Bill Act brackets (10%-37%), adds your estimated Oregon state income tax (9.9% top rate simplified), and displays your total tax burden, combined effective rate, and annual take-home pay. All calculations happen instantly in your browser.