State taxes: Oregon

Oregon has 4 income tax rates, from 5% to 9.9%. Oregon taxpayers can subtract from their state taxable income some or all of the federal tax they paid. More on Oregon taxes can be found in the tabbed pages below.

Personal income tax

Oregon collects state income taxes using a progressive 5-bracket system.

For single taxpayers and married couples filing separate returns:

• 5% on the first $3,350 of taxable income.
• 7% on taxable income between $3,351 and $8,400.
• 9% on taxable income between $8,401 and $125,000
• 9.9% on taxable income of $125,001 and above.

For married couples filing jointly, qualifying widows or widowers, and heads of household, the rates remain the same, but the tax brackets are doubled.

Oregon personal income tax returns are due April 15 or the next business day if that date falls on a weekend or holiday.

In Oregon, registered domestic partners, or RDPs, are subject to the same tax statutes and regulations that apply to married filers. Just like a married couple, domestic partners may file jointly or separately. As an RDP, you can’t file using the single filing status on your Oregon return.

Sales taxes

Oregon has no sales tax.

Personal and real property taxes

County assessors administer the assessment of most property. The Oregon Department of Revenue appraises certain large industrial sites for the counties. Each county assessor prepares his county’s assessment roll, which is a listing of all taxable property as of Jan. 1 of each year.

Property subject to taxation includes all privately owned real property (land, buildings, and fixed machinery and equipment) and personal property used in a business.

There is no property tax on household furnishings, personal belongings, automobiles, crops, orchards or business inventories.

Some Oregon citizens might be eligible for deferral of property taxes on their residences. In these cases, the state will pay the property taxes, but will place a lien on the property and charge deferred lien fees.

Inheritance and estate taxes

In 2012, the Oregon inheritance tax changed to the Oregon estate transfer tax. For deaths on or after Jan. 1, 2012, Form OR 706, Oregon Estate Transfer Tax Return, 150-104-001, instead of Form IT-1, Oregon Inheritance Tax Return, must be filed.

Oregon also collects a fiduciary income tax on the income of all trusts and estates. In some cases, the income tax will actually be paid by the trust or estate, but in many cases the income will be taxed to the beneficiaries (or even to the grantor), and the trust or estate will escape tax on that same income.

Other Oregon tax facts

Oregon Revenue Online provides taxpayers access to tools for managing their tax accounts.

Oregon also accepts electronically filed calendar year, fiscal year, short year, and amended business tax returns, including corporation, Oregon composite, partnership, transit self-employment, fiduciary and estate.

Oregon taxpayers can check the status of their state refunds online.

With the legalization of recreational marijuana, Oregon collects taxes on pot production and its sales.

For more information, visit the Oregon Department of Revenue Administration website.

To download tax forms on this site, you will need to install a free copy of Adobe Acrobat Reader. Click here for instructions.