Quick answer
Oregon paycheck basics
Oregon's top income tax rate is 9.9%, on taxable income above $125,000 for single filers. The rates start at 4.75% but climb quickly: a single filer reaches the 8.75% rate at just $11,400 of taxable income. Oregon softens this with a feature few states have: its withholding formula subtracts part of the federal income tax you pay, up to $8,750 a year, before applying Oregon's rates.
Oregon paychecks also carry two small statewide payroll deductions, Paid Leave Oregon (0.6% of wages up to $184,500) and the Statewide Transit Tax (0.1% of wages), and high earners in the Portland area can owe two regional income taxes that employers withhold above $200,000 of wages: Metro's Supportive Housing Services tax and Multnomah County's Preschool for All tax. This calculator applies the Department of Revenue's 2026 formula and all of these to estimate your take-home pay.
How Oregon taxes your paycheck
Oregon employers use the Department of Revenue's Oregon Withholding Tax Formulas, effective January 1, 2026. The formula works on annual amounts: your annualized wages, minus the federal income tax withheld from them (capped at $8,750 a year, and reduced step by step to nothing between $125,000 and $145,000 of wages for single filers, or $250,000 and $290,000 for married filers), minus a standard deduction of $2,910 (single) or $5,820 (married, or single with three or more allowances). The result runs through Oregon's rates of 4.75%, 6.75%, 8.75% and 9.9%, and $263 is then subtracted for each allowance on your OR-W-4; allowances are not allowed on wages over $100,000 single or $200,000 married. The annual figure is divided by the number of pay periods. If you have no OR-W-4 or federal W-4 on file, employers must withhold a flat 8%. Oregon wages exclude 401(k) deferrals, cafeteria plan premiums and HSA contributions. A bonus paid with regular pay goes through the formula; paid on a different day, it may be withheld at a flat 8%.
| Taxable income | Rate |
|---|---|
| $0 – $4,550 | 4.75% |
| $4,550 – $11,400 | 6.75% |
| $11,400 – $125,000 | 8.75% |
| Over $125,000 | 9.90% |
| Taxable income | Rate |
|---|---|
| $0 – $9,100 | 4.75% |
| $9,100 – $22,800 | 6.75% |
| $22,800 – $250,000 | 8.75% |
| Over $250,000 | 9.90% |
Oregon local income taxes
Oregon has no city income tax on ordinary wages, but two regional taxes in the Portland area reach high earners. Metro's Supportive Housing Services (SHS) tax is 1% of taxable income above $125,000 for single filers and $200,000 for joint filers, for people who live in the Metro district and on income nonresidents earn there. Multnomah County's Preschool for All (PFA) tax is 1.5% above the same thresholds plus another 1.5% above $250,000 single or $400,000 joint, for county residents and on county-sourced income; it is scheduled to rise by 0.8% in 2027. Employers with a location in the district must withhold for employees who work there and earn $200,000 or more a year: SHS at 1% of wages above $200,000, and PFA at 1.5% above $200,000 and 3% above $400,000. Employees can use each program's opt-in/opt-out form to change the amount. Select either or both in the calculator; below $200,000 of wages nothing is withheld, although the tax may still be owed with the return.
| Jurisdiction | Rate | Applies to | Source |
|---|---|---|---|
| Metro Supportive Housing Services tax | 1% of wages over $200,000 (withholding) | Residents and workers | Source |
| Multnomah County Preschool for All tax | 1.5% over $200,000; 3% over $400,000 (withholding) | Residents and workers | Source |
Oregon state payroll programs
Paid Leave Oregon funds paid family, medical and safe leave. The 2026 contribution rate is 1% of wages up to $184,500; employees pay 60% of it, or 0.6%, and employers with 25 or more employees pay the other 40%. Flexible spending and HSA deductions are removed from the wages it applies to, but 401(k) deferrals are not. The Statewide Transit Tax is 0.1% of wages, one dollar per $1,000, with no cap, withheld from Oregon residents wherever they work and from nonresidents working in Oregon; it applies even when no income tax is withheld. A 2025 law would have doubled it to 0.2%, but voters rejected that increase as Measure 120 on May 19, 2026, so the rate stays at 0.1%. Oregon also charges employers a Workers' Benefit Fund assessment of 1.8 cents per hour worked in 2026, which funds return-to-work and disability benefits. Employers pay at least half and may withhold up to half (0.9 cents per hour) from employees' pay; the calculator adds that line only when you check the box for it, because many employers pay all of it. Oregon's DCBS proposes 2.2 cents plus a new 0.2-cent BOLI Expense Fund assessment for 2027, which is not included.
| Program | Employee rate | Wage base | Source |
|---|---|---|---|
| Paid Leave Oregon | 0.6% | Up to $184,500/year | Source |
| Oregon Statewide Transit Tax | 0.1% | No wage cap | Source |
| Oregon Workers' Benefit Fund (optional) | 0.9¢ per hour worked (only if your employer withholds it) | Hours worked, no wage cap | Source |
Worked example
A $60,000 salary in Oregon, single, paid biweekly
- Annual salary:
- $60,000
- Filing status:
- Single
- Pay frequency:
- Biweekly (26 paychecks/year)
- Deductions:
- None
- State:
- Oregon
- Salary: +$2,307.69
- Federal income tax: −$193.08
- Social Security: −$143.08
- Medicare: −$33.46
- Oregon income tax: −$162.95
- Paid Leave Oregon: −$13.85
- Oregon Statewide Transit Tax: −$2.31
Net pay per paycheck: $1,758.96
Computed with Oregon's default withholding certificate (no allowances, no extra withholding) and no pre-tax or post-tax deductions. Your own paycheck will differ with different elections.
Take-home pay by salary in Oregon
Net pay at five common salaries, biweekly, with no bonus, tips or deductions — computed the same way as the worked example above, for Single and Married Filing Jointly.
| Annual salary | Single — per paycheck | Single — annual | MFJ — per paycheck | MFJ — annual |
|---|---|---|---|---|
| $40,000 | $1,195.40 | $31,080.40 | $1,259.98 | $32,759.48 |
| $60,000 | $1,758.96 | $45,732.96 | $1,835.48 | $47,722.48 |
| $80,000 | $2,264.98 | $58,889.48 | $2,388.94 | $62,112.44 |
| $100,000 | $2,733.44 | $71,069.44 | $2,942.40 | $76,502.40 |
| $150,000 | $3,843.69 | $99,935.94 | $4,205.00 | $109,330.00 |
How to use this calculator
- Enter your pay. Choose salary or hourly, fill in the amount and hours, and pick how often you are paid.
- Fill in your federal Form W-4. Filing status, the Step 2 checkbox, and Steps 3 and 4 if they apply to you.
- Fill in your OR-W-4. The calculator only shows the fields Oregon actually asks for.
- Pick your local tax jurisdiction, if one applies to where you live or work.
- Add any deductions. Traditional or Roth 401(k), health premiums, HSA, FSA, or other pre-tax and post-tax amounts taken from your pay.
- Read your results. Net pay per paycheck, the full breakdown by category, and any warnings about your specific numbers.
Formulas used
Net pay = gross pay − pre-tax deductions − federal tax − FICA − Oregon income tax − state payroll programs − local tax − post-tax deductions.
Oregon vs. neighboring states
Net pay on a $75,000 salary, single, paid biweekly, in Oregon compared with its bordering states.
| State | Net pay per paycheck | Net pay annual | Difference vs. Oregon (annual) |
|---|---|---|---|
| Oregon | $2,144.24 | $55,750.24 | — |
| Washington | $2,328.93 | $60,552.18 | +$4,801.94 |
| Idaho | $2,248.94 | $58,472.44 | +$2,722.20 |
| Nevada | $2,368.94 | $61,592.44 | +$5,842.20 |
| California | $2,207.54 | $57,396.04 | +$1,645.80 |
Frequently asked questions
How is federal income tax withheld from my paycheck calculated?+
Employers use the IRS Publication 15-T percentage method with the elections on your Form W-4: filing status, whether Step 2 is checked, Step 3 credits, and any Step 4 adjustments. That produces an amount to withhold each pay period before Social Security, Medicare, and any state or local tax are applied.
What is FICA and why is it withheld on every paycheck?+
FICA is Social Security tax (6.2% of wages up to the annual Social Security wage base) plus Medicare tax (1.45% of all wages, with an extra 0.9% on wages above $200,000 in a year). Both are withheld on every US paycheck regardless of which state you work in, because they fund federal programs rather than a state one.
Is the result on this calculator the same as my actual paycheck?+
It is an estimate for planning, not a substitute for your pay stub. Your actual withholding depends on the exact elections on file with your employer, your specific pay dates, and any mid-year changes to your deductions — the calculator applies the published federal and state formulas to the numbers you enter.
What are the Oregon income tax rates for 2026?+
Four rates: 4.75%, 6.75%, 8.75% and 9.9%. For single filers, 4.75% applies up to $4,550 of taxable income, 6.75% up to $11,400, 8.75% up to $125,000 and 9.9% above that. The brackets are twice as wide for married couples filing jointly, and heads of household use the joint brackets.
Why does Oregon subtract my federal tax?+
Oregon lets taxpayers deduct part of their federal income tax on the state return, so the withholding formula does the same: up to $8,750 a year of federal tax withheld comes off your wages before Oregon's rates apply. The subtraction shrinks in steps and disappears at $145,000 of wages for single filers and $290,000 for married filers.
How many allowances should I claim on my OR-W-4?+
Use the worksheets in the OR-W-4 instructions. Each allowance lowers withholding by $263 a year. Claiming three or more allowances as a single filer also moves you onto the married withholding table, and allowances are ignored entirely once wages pass $100,000 (single) or $200,000 (married). With no certificate on file, your employer must withhold 8% of wages.
What is the Oregon Statewide Transit Tax?+
A 0.1% tax on wages, or $1 per $1,000, that employers withhold from Oregon residents wherever they work and from nonresidents working in Oregon. It has no wage cap and applies even to employees who have no income tax withheld. A 2025 law raising it to 0.2% was referred to voters as Measure 120 and did not pass on May 19, 2026, so it remains 0.1%.
How much is the Paid Leave Oregon deduction?+
0.6% of wages in 2026: employees pay 60% of the 1% total contribution rate, on wages up to $184,500 for the year. Someone earning $60,000 pays about $360 a year. Employers with 25 or more employees pay the remaining 40%.
Who pays the Metro SHS and Multnomah County PFA taxes?+
Higher earners in the Portland area. Metro's SHS tax is 1% of taxable income over $125,000 (single) or $200,000 (joint) for Metro residents and on income earned in the district. Multnomah County's PFA tax is 1.5% over the same thresholds and 3% over $250,000 (single) or $400,000 (joint), for county residents and county-sourced income. Employers withhold both from employees earning $200,000 or more who work in the district.
How are bonuses taxed in Oregon?+
A bonus paid with your regular paycheck is added to that paycheck's wages and withheld through the normal formula. If it's paid on a different day from your regular pay, your employer may withhold a flat 8% for Oregon instead. Federally, bonuses are usually withheld at 22%.
Does Oregon tax 401(k) contributions?+
No. Oregon's withholding formula excludes 401(k) and other retirement plan deferrals, cafeteria plan (Section 125) premiums and HSA contributions from wages. Paid Leave Oregon is different: 401(k) deferrals stay in the wages it applies to.
What is the minimum wage in Oregon?+
It depends on where you work. From July 1, 2026 through June 30, 2027, it is $15.55 an hour in most of the state, $16.80 in the Portland metro area and $14.55 in non-urban counties. The rates are adjusted every July 1.
Sources
- Oregon Department of Revenue — Oregon Withholding Tax Formulas, effective January 1, 2026 (150-206-436)
- Oregon Department of Revenue — 2026 Form OR-W-4
- Oregon Department of Revenue — 2025 Form OR-40 Instructions (tax rate charts)
- Oregon Department of Revenue — Statewide Transit Tax
- Paid Leave Oregon — Employees
- Paid Leave Oregon — Common questions
- City of Portland Revenue Division — Personal income tax withholding (Metro SHS and Multnomah PFA)
- Oregon Metro — Supportive Housing Services taxes FAQ
- Multnomah County — Preschool For All Personal Income Tax
- Oregon Bureau of Labor and Industries — Minimum wage
- Oregon DCBS — Oregon proposes workers' compensation 2027 rates (Workers' Benefit Fund, 2026 rate history)
- IRS Publication 15-T (2026), Federal Income Tax Withholding Methods
- IRS Publication 15 (2026), Employer's Tax Guide
- Social Security Administration — 2026 COLA Fact Sheet