Does Oregon have a state income tax?

Yes. Oregon imposes a progressive state income tax with four brackets: 4.75% on the first $4,300 of taxable income, 6.75% from $4,300 to $10,750, 8.75% from $10,750 to $125,000, and 9.9% on income above $125,000. Oregon's top marginal rate of 9.9% is among the highest in the nation, exceeded only by California's top rate of 13.3%. Because Oregon has no general sales tax, the state relies heavily on income tax revenue to fund public services, making the income tax burden a defining feature of the state's fiscal structure.

What is the Oregon Statewide Transit Tax?

Oregon levies a 0.1% Statewide Transit Tax (STT) on all wages earned in the state. This tax has no wage cap, no exemptions, and applies to every worker regardless of filing status or income level. The revenue funds public transportation improvements across Oregon, including TriMet in the Portland metro area and transit services in smaller communities. Unlike the federal Social Security tax, which caps at $176,100, the STT applies to every dollar of wages with no upper limit. Employers are required to withhold this tax from each paycheck.

How much does a $20/hour worker take home in Oregon?

At $20/hour working 40 hours per week, your gross annual pay is $41,600. After federal income tax of approximately $2,940, Oregon state income tax of roughly $2,725, the 0.1% Statewide Transit Tax of about $42, Social Security of $2,579, and Medicare of $603, your annual take-home pay is approximately $32,711. That works out to about $1,258 per biweekly paycheck. Oregon's high state income tax rates mean workers take home less per paycheck than those in neighboring states like Nevada (no income tax) or Idaho (5.695% flat rate).

What is the Oregon standard deduction in 2026?

Oregon's standard deduction is $2,745 for single filers, $5,495 for married filing jointly, and $4,420 for head of household. These amounts are notably lower than federal standard deductions ($15,000 single, $30,000 married, $22,500 head of household), which means a larger share of your income is subject to Oregon state tax. The relatively small state standard deduction combined with Oregon's high marginal rates results in meaningful state tax liability even for moderate-income earners. Workers who itemize deductions on their federal return should evaluate whether itemizing on the Oregon return also produces a lower tax bill.

Does Oregon have a sales tax?

No. Oregon is one of only five states with no general sales tax, alongside Delaware, Montana, New Hampshire, and Alaska (which allows local sales taxes). This means consumers pay no sales tax on purchases of goods and services within the state. However, Oregon compensates for this lost revenue with higher income tax rates, so the benefit of no sales tax is partially offset by the 9.9% top income tax bracket. For workers earning moderate wages, the absence of sales tax can save hundreds of dollars annually on everyday purchases, groceries, and big-ticket items compared to living in a state like California where combined sales tax rates can exceed 10%.

Do any Oregon cities charge local income taxes?

Oregon cities do not impose traditional local income taxes on wages in the same way that cities in Ohio or Pennsylvania do. However, the Portland metro area has two additional local taxes that function similarly: the Multnomah County Preschool for All personal income tax (1.5% on income above $125,000 single or $200,000 joint) and the Metro Supportive Housing Services tax (1% on income above $125,000 single or $200,000 joint). These taxes affect higher earners in the Portland metro area and can push the combined top marginal rate above 12%. This calculator does not include these local surcharges, so Portland metro workers earning above $125,000 should plan for additional withholding.

Does Oregon tax Social Security or retirement income?

Oregon does not tax Social Security benefits for most residents. The state provides a subtraction that fully eliminates Social Security benefits from taxable income for filers below certain income thresholds. However, Oregon does tax other forms of retirement income, including 401(k) distributions, IRA withdrawals, and pension payments, at the same progressive rates applied to wage income. The state offers a retirement income credit for qualifying seniors, but it phases out at higher income levels. Workers building retirement savings through pre-tax 401(k) contributions should be aware that withdrawals in retirement will face Oregon's income tax rates if they remain Oregon residents.

Oregon Paycheck Calculator (Hourly) — Free Take-Home Pay Estimator

How the Oregon Paycheck Calculator Works

This Oregon paycheck calculator hourly tool computes your take-home pay by subtracting federal income tax, Oregon state income tax, the Statewide Transit Tax, and FICA (Social Security + Medicare) from your gross earnings. Oregon uses a four-bracket progressive state income tax system with rates of 4.75%, 6.75%, 8.75%, and 9.9%, making it one of the highest-taxed states for wage earners. The state also imposes a 0.1% Statewide Transit Tax on all wages with no cap or exemption.

The core formula:

Take-Home = Gross Pay - Federal Tax - State Tax - Transit Tax - Social Security - Medicare

P_{net} = P_{gross} - T_{fed} - T_{OR} - T_{STT} - T_{SS} - T_{Med}

Annual gross is hourly wage multiplied by hours per week multiplied by 52 weeks. To convert between hourly and annual figures, see our salary calculator. Per-period pay divides the annual figure by 52, 26, 24, or 12 depending on your pay frequency.

Federal income tax follows progressive brackets from 10% on the first $11,925 of taxable income (single) up to 37% on income above $626,350. The standard deduction is $15,000 for single filers, $30,000 for married filing jointly, and $22,500 for head of household. Oregon state income tax applies separately: 4.75% on the first $4,300 of taxable income, 6.75% from $4,300 to $10,750, 8.75% from $10,750 to $125,000, and 9.9% above $125,000. Oregon uses its own standard deduction of $2,745 for single filers, $5,495 for married filing jointly, and $4,420 for head of household. The Statewide Transit Tax of 0.1% applies to all wages before any deductions. Social Security tax is 6.2% on wages up to $176,100, and Medicare is 1.45% on all wages plus a 0.9% surtax above $200,000 single or $250,000 married.

Oregon Hourly Paycheck Tax Breakdown

Oregon's state income tax is a significant factor in paycheck calculations for residents. The four-bracket structure begins at 4.75% on the first $4,300 of taxable income, a floor already higher than many states' top rates. The jump to 8.75% at $10,750 means that most Oregon workers earning moderate wages are taxed at 8.75% on the bulk of their income. The top rate of 9.9% on income above $125,000 is the second-highest top marginal rate in the western United States, trailing only California. This heavy reliance on income tax stems directly from Oregon's constitutional prohibition on a general sales tax, a policy first established by voters in the 1930s and repeatedly reaffirmed in ballot measures.

The absence of a sales tax in Oregon is a genuine financial benefit for residents. Oregonians save on every purchase, from groceries to electronics to vehicles, compared to residents of neighboring California (where combined sales tax rates often exceed 10%) or Idaho (6% state rate). For a household spending $40,000 annually on taxable goods, the sales tax savings in Oregon versus California could exceed $3,000 per year. However, these savings are partially offset by the high income tax rates, so the net advantage depends heavily on a worker's income level and spending habits. Lower-income workers who spend most of their income tend to benefit more from the no-sales-tax policy, while higher earners face disproportionately high income tax rates.

Compared to its neighbors, Oregon occupies one of the highest positions for income tax burden. Nevada and Washington have no state income tax at all. Idaho charges a flat 5.695% rate. California's brackets are numerous, but its lowest rate of 1% is far gentler than Oregon's 4.75% floor. For a worker earning $60,000 annually, Oregon's effective state income tax rate approaches 7%, while Idaho's flat 5.695% applies uniformly, and Nevada and Washington charge nothing. Workers in the Portland metro area who commute to Vancouver, Washington, can sometimes reduce their state tax burden by establishing residency across the Columbia River, though Oregon taxes residents on all income regardless of where the work is performed.

Your Oregon paycheck deductions come from five sources:

Federal income tax: Progressive brackets based on filing status and taxable income. See our income tax calculator for full-year estimates.
Oregon state income tax: Progressive brackets of 4.75%, 6.75%, 8.75%, and 9.9% with thresholds at $4,300, $10,750, and $125,000.
Statewide Transit Tax: 0.1% on all wages, no cap, no exemption.
Social Security: 6.2% on wages up to $176,100 annually.
Medicare: 1.45% on all wages, plus 0.9% surtax above $200,000 single or $250,000 married.

Variable Definitions

Hourly Wage: Your gross pay per hour before deductions. Oregon's minimum wage varies by region: the standard rate applies to most of the state, with a higher rate for the Portland metro area and a lower rate for nonurban counties. A semiconductor fabrication technician at Intel's Hillsboro campus earning $32/hour grosses $66,560 annually, while a Nike corporate employee in Beaverton earning $45/hour grosses $93,600. Timber industry workers in rural southern and eastern Oregon commonly earn $20-$30/hour, and renewable energy technicians at wind farms in the Columbia Gorge earn $25-$38/hour depending on certification level.

Hours per Week: Total regular hours. Full-time is 40. Healthcare workers at OHSU (Oregon Health and Science University) in Portland may work three 12-hour shifts for 36 hours or pick up additional shifts for 48 hours. Seasonal workers in the Willamette Valley wine industry often work 50-60 hours per week during harvest season from September through November, with the overtime hours paid at 1.5x. Columbia Sportswear warehouse staff in Portland work standard 40-hour weeks with optional overtime during peak shipping seasons. Enter your typical weekly figure.

Pay Frequency: Weekly (52 periods), biweekly (26), semi-monthly (24), or monthly (12). Most large Oregon employers, including Intel, Nike, Daimler Trucks North America, and Providence Health, pay biweekly. State government employees and University of Oregon faculty are commonly paid monthly. Construction tradespeople and timber workers often receive weekly pay. Seasonal agricultural workers in the Willamette Valley and Hood River fruit orchards may be paid weekly or biweekly depending on the employer.

Filing Status: Determines your federal and Oregon standard deductions and bracket thresholds. A single filer working at a Portland tech startup earning $70,000 has a federal standard deduction of $15,000 and an Oregon deduction of $2,745. Married filing jointly doubles the federal standard deduction to $30,000 and increases the Oregon deduction to $5,495. Head of household, often used by single parents in Salem or Eugene, provides $22,500 federally and $4,420 in Oregon.

Pre-Tax Deduction: Percentage of gross pay contributed to 401(k), 403(b), or HSA. A software engineer at Intel's Ronler Acres campus in Hillsboro earning $110,000 who contributes 10% ($11,000) reduces both federal and Oregon taxable income, saving roughly $2,420 federally (at 22%) and $962.50 in Oregon (at 8.75%), for a combined tax savings of about $3,382 per year. Many Silicon Forest employers offer generous 401(k) matching, making pre-tax contributions particularly valuable for reducing Oregon's steep state tax bite.

Worked Example 1: Oregon Hourly Paycheck at $18/Hour

A single filer earning $18/hour, working 40 hours/week, biweekly pay, with a 5% pre-tax 401(k) contribution:

Annual gross: $18 x 40 x 52 = $37,440
Pre-tax deduction: $37,440 x 5% = $1,872
Taxable gross: $37,440 - $1,872 = $35,568
Federal taxable income: $35,568 - $15,000 (standard deduction) = $20,568
Federal tax: ($11,925 x 10%) + ($8,643 x 12%) = $1,192.50 + $1,037.16 = $2,229.66
Oregon taxable income: $35,568 - $2,745 (OR standard deduction) = $32,823
Oregon state tax: ($4,300 x 4.75%) + ($6,450 x 6.75%) + ($22,073 x 8.75%) = $204.25 + $435.38 + $1,931.39 = $2,571.02
Statewide Transit Tax: $35,568 x 0.1% = $35.57
Social Security: $35,568 x 6.2% = $2,205.22
Medicare: $35,568 x 1.45% = $515.74
Total deductions: $1,872 + $2,229.66 + $2,571.02 + $35.57 + $2,205.22 + $515.74 = $9,429.21
Annual take-home: $37,440 - $9,429.21 = $28,010.79
Biweekly take-home: $28,010.79 / 26 = $1,077.34

Worked Example 2: Oregon Hourly Paycheck at $48/Hour

A married filing jointly filer earning $48/hour, working 40 hours/week, biweekly pay, with a 10% pre-tax 401(k) contribution:

Annual gross: $48 x 40 x 52 = $99,840
Pre-tax deduction: $99,840 x 10% = $9,984
Taxable gross: $99,840 - $9,984 = $89,856
Federal taxable income: $89,856 - $30,000 (married standard deduction) = $59,856
Federal tax: ($23,850 x 10%) + ($36,006 x 12%) = $2,385 + $4,320.72 = $6,705.72
Oregon taxable income: $89,856 - $5,495 (OR married standard deduction) = $84,361
Oregon state tax: ($4,300 x 4.75%) + ($6,450 x 6.75%) + ($73,611 x 8.75%) = $204.25 + $435.38 + $6,440.96 = $7,080.59
Statewide Transit Tax: $89,856 x 0.1% = $89.86
Social Security: $89,856 x 6.2% = $5,571.07
Medicare: $89,856 x 1.45% = $1,302.91
Total deductions: $9,984 + $6,705.72 + $7,080.59 + $89.86 + $5,571.07 + $1,302.91 = $30,734.15
Annual take-home: $99,840 - $30,734.15 = $69,105.85
Biweekly take-home: $69,105.85 / 26 = $2,658.07

This Silicon Forest engineer takes home roughly 69.2% of gross. Oregon's high state income tax and the Statewide Transit Tax together consume over 7% of this worker's taxable gross, a significantly larger share than in neighboring Idaho or Nevada.

Edge Cases and Advanced Scenarios

Statewide Transit Tax on all wages (0.1%, no cap): Unlike Social Security, which caps at $176,100, the Oregon Statewide Transit Tax applies to every dollar of wages with no upper limit and no exemptions. A senior executive at Columbia Sportswear earning $400,000 pays $400 in STT, while a part-time barista in Bend earning $15,000 pays $15. The tax is withheld from every paycheck regardless of filing status, number of dependents, or any other factor. Employers are responsible for withholding, and workers who have multiple Oregon employers may see the tax deducted from each job independently. Self-employed individuals pay the STT through their Oregon income tax return rather than through payroll withholding.

No sales tax tradeoff and effective total tax burden: Oregon's lack of a general sales tax is often cited as a major financial advantage, but the tradeoff is a top income tax rate of 9.9% that exceeds most other states. For a worker earning $80,000 annually, Oregon's effective state income tax rate is approximately 7.5%, compared to zero in Nevada and Washington. However, if that worker spends $30,000 per year on taxable goods and services, they save roughly $2,400 compared to living in California (8% average combined sales tax) or $1,800 compared to Idaho (6% sales tax). The breakeven point where Oregon's income tax disadvantage equals the sales tax savings varies by income and spending patterns, but generally falls around $50,000 to $70,000 in annual income for single filers. Workers below that range tend to come out ahead in Oregon; workers above it may pay more in total taxes than they would in states with moderate income taxes and a sales tax.

Portland metro additional local taxes for high earners: Workers in Multnomah County face two additional local income taxes that are not included in this calculator. The Multnomah County Preschool for All tax imposes 1.5% on taxable income above $125,000 for single filers ($200,000 for joint filers), and an additional 1.5% above $250,000 ($400,000 joint). The Metro Supportive Housing Services tax adds 1% on taxable income above $125,000 single ($200,000 joint). Combined with the state's 9.9% top rate and the 0.1% Statewide Transit Tax, a high-earning Portland metro worker can face a combined state and local marginal income tax rate exceeding 13.5%. Software engineers, healthcare executives at OHSU, and senior managers at Nike or Intel who earn above these thresholds should factor in these additional local taxes when comparing Portland compensation to offers in other metro areas.

Social Security wage base cap ($176,100 in 2026): If you earn above $176,100 annually, Social Security tax stops at that threshold. A senior product manager in Portland's tech sector earning $200,000 pays SS tax capped at $176,100 x 6.2% = $10,918.20 rather than 6.2% of the full $200,000. The cap resets January 1 each year, meaning high earners see larger paychecks in the latter months after reaching the cap. This is particularly relevant in Oregon's Silicon Forest corridor, where senior engineers at Intel, Synopsys, and Lattice Semiconductor frequently exceed the wage base.

What to Do with Your Oregon Paycheck Result

Compare your calculated take-home pay to your actual pay stub. Differences often come from health insurance premiums, union dues, Portland metro local taxes, or court-ordered garnishments not included here.
Increase pre-tax 401(k) contributions to reduce both federal and Oregon state tax. Every dollar contributed saves both your federal marginal rate and up to 9.9% in Oregon state tax, making pre-tax savings especially valuable for Oregon residents.
Review your Oregon Form OR-W-4 withholding alongside your federal W-4. Both can be adjusted independently when your circumstances change, such as marriage, a new child, or a significant raise.
If you live in the Portland metro area and earn above $125,000, budget for additional Multnomah County and Metro local taxes that are not reflected in this calculator's results.
Use our federal income tax percentage calculator to see your effective federal rate and understand what share of your gross income goes to federal versus state taxes.

Related Calculators

California Paycheck Calculator (Hourly) -- California has higher top rates but also a sales tax; compare overall take-home pay.
Idaho Paycheck Calculator (Hourly) -- Idaho's flat 5.695% rate versus Oregon's progressive brackets up to 9.9%.
Nevada Paycheck Calculator (Hourly) -- Nevada has no income tax; see how much more you would take home across the state line.
Salary Calculator -- convert between hourly and annual pay.
Income Tax Calculator -- estimate your total federal income tax liability.
Federal Income Tax Percentage Calculator -- find your effective federal tax rate.
Paycheck Calculator by State — compare take-home pay across all 50 states and DC.

Oregon Paycheck Calculator (Hourly)