Oregon Income Tax Rate: Brackets, Kicker, and Local Add-Ons

Oregon income tax rates run from 4.75% to 9.9% across four brackets, with the top rate starting at $125,000 of taxable income for single filers and $250,000 for joint filers. The state has no general sales tax, so personal income tax carries most of the revenue load, and the dollar cutoffs between brackets adjust for inflation each year.

The Four Brackets for 2025

Oregon’s rate schedule for the 2025 tax year, based on filing status:

Single or Married Filing Separately

4.75% on the first portion of taxable income
6.75% on the next tier
8.75% on income up to $125,000
9.9% on income over $125,000

Married Filing Jointly, Head of Household, or Qualifying Surviving Spouse

4.75% on the first tier
6.75% on the next
8.75% on income up to $250,000
9.9% on income over $250,000

The four rates themselves have held steady for several years. What shifts is the dollar amount at which each bracket begins. For 2024, the exact thresholds for single filers were $4,300, $10,750, and $125,000; for joint filers, $8,600, $21,500, and $250,000.¹ The 2025 top-bracket entry points stayed the same, and the lower cutoffs moved modestly, producing slightly lower tax at each income level.² For an exact figure, use Oregon’s tax tables for the year you’re filing.

What You Actually Pay: Marginal vs. Effective Rate

Each bracket rate applies only to the income sitting inside that bracket. Falling into the 9.9% bracket does not mean you pay 9.9% on all your income. Using 2024 thresholds, a single filer with $150,000 in taxable income owes:

4.75% on the first $4,300 = $204
6.75% on the next $6,450 = $435
8.75% on the next $114,250 = $9,997
9.9% on the remaining $25,000 = $2,475

Total: $13,111, an effective rate of about 8.7%.¹ Crossing into a higher bracket never leaves you worse off than staying just below it. The gap between marginal and effective rate is widest for people whose income barely reaches the next tier.

Deductions and Credits That Lower Your Tax

Oregon taxable income starts with your federal adjusted gross income and then runs through Oregon-specific additions, subtractions, deductions, and credits. Three items do most of the work of bringing the bill down.

Standard Deduction

For 2025, the Oregon standard deduction is $2,835 for single filers and $5,670 for joint filers.³ For 2026, those figures rise to $2,910 and $5,820.⁴ Both amounts are much smaller than the federal standard deduction, which is why Oregon taxable income usually looks higher than what you saw on your federal return.

Personal Exemption Credit

Oregon gives you a $256 credit per qualifying exemption for 2025. Because it’s a credit rather than a deduction, it comes off your tax dollar-for-dollar. The credit phases out entirely once federal adjusted gross income exceeds $100,000 for single filers or $200,000 for joint filers.³

Federal Tax Subtraction

Oregon is one of the few states that lets you subtract a portion of your federal income tax liability from Oregon taxable income. For 2025, the combined subtraction for federal tax, prior-year federal tax paid, and any foreign tax subtraction is capped at $8,500 ($4,250 if married filing separately). Within that, the foreign tax portion is limited to $3,000 ($1,500 if married filing separately).³ The cap adjusts for inflation, so the 2026 figure will be slightly higher. Missing this subtraction is a common way people overpay.

The Kicker Refund

When Oregon collects more than 2% above the state’s revenue forecast for a two-year budget cycle, the constitution requires the entire surplus to go back to personal income taxpayers as a refundable credit.⁵

The kicker only appears on returns for odd-numbered tax years. For 2025 returns filed in early 2026, the kicker equals 9.863% of your 2024 tax liability. On a $5,000 2024 tax bill, that’s about $493 back.⁵ There is no kicker on 2026 returns.

To claim the 2025 kicker, you need a 2024 Oregon return showing a tax liability, and you have to file a 2025 return even if you otherwise wouldn’t be required to.⁵ Skipping the filing means leaving the credit unclaimed.

Portland-Area Add-Ons

If you live or earn income in the Portland metro area, two local income taxes stack on top of the state rate, and a separate statewide payroll tax applies to every Oregon worker. These local taxes are filed and paid separately from your Oregon return.

Metro Supportive Housing Services Tax

The Metro SHS tax covers Multnomah, Clackamas, and Washington Counties. Through the 2025 tax year, it’s 1% of taxable income above $125,000 for single filers and above $200,000 for joint filers.⁶ Non-residents who earn income sourced within Metro’s boundaries owe the tax on that portion.⁷

Starting in 2026, those income thresholds adjust annually for inflation, and the threshold for making quarterly estimated payments rises from $1,000 to $5,000, cutting many taxpayers out of the quarterly filing requirement.⁶

Multnomah County Preschool For All Tax

The PFA tax applies only within Multnomah County:

1.5% on taxable income over $125,000 (single) or $200,000 (joint)
An additional 1.5% on income over $250,000 (single) or $400,000 (joint), for a combined 3%

Residents and non-residents earning income in the county are both subject to the tax.⁸⁹ A 0.8% rate increase takes effect January 1, 2027, bringing the lower tier to 2.3% and the upper tier to 3.8%.

Statewide Transit Tax

Every worker in Oregon owes 0.1% on wages, withheld by the employer, with no income floor. Oregon residents pay it wherever they work, and non-residents pay it on wages earned for services performed in Oregon.¹⁰ On $60,000 in wages, that’s $60 a year.

Combined Marginal Rate

A single filer in Multnomah County making more than $250,000 could face a marginal rate of 9.9% state, plus 1% SHS, plus 3% PFA, plus 0.1% transit. That’s close to 14% before federal tax.

Who Has to File, and When

For the 2025 tax year, Oregon’s gross income thresholds for full-year residents claiming no exemptions are:

Single: $7,935
Married filing jointly: $15,865
Head of household: $9,950
Qualifying surviving spouse: $11,060

Each additional personal exemption raises the threshold by roughly $1,000.³ You also have to file if Oregon tax was withheld from your wages or if you’re required to file federally. Non-residents and part-year residents file when their Oregon-sourced income exceeds the applicable standard deduction ($2,910 for a single filer in 2026).

The 2025 Oregon return is due April 15, 2026.¹¹ Oregon honors the federal extension calendar, pushing the filing deadline to October 15 if you request one.

Penalties If You File or Pay Late

An Oregon extension is only an extension to file, never to pay. If you owe tax and miss April 15, the state adds a 5% late-payment penalty right away.¹²

File more than three months late and a separate 20% late-filing penalty attaches to any unpaid tax. When both apply, the total reaches 25% of the unpaid balance. Interest runs at 8% annually for periods beginning on or after January 1, 2026, and if tax stays unpaid more than 60 days after assessment, another 4% annual interest layer applies. Interest is charged on the tax, not on the penalties.¹²

If April is going to slip past you, file the extension and pay as much of your estimated balance as you can by the original deadline. That removes the 20% filing penalty, but the 5% payment penalty and interest keep running on anything unpaid.

1
Oregon.gov. 2024 Tax Rate Charts
2
Oregon.gov. 2025 Tax Tables for Form OR-40
3
Oregon Department of Revenue. 2025 Publication OR-17, Oregon Individual Income Tax Guide
4
Oregon Department of Revenue. Oregon Withholding Tax Formulas, 150-206-436 (2026)
5
Oregon Department of Revenue. Oregon Surplus (“Kicker”)
6
Metro. Pay My Supportive Housing Services Taxes
7
Metro. Supportive Housing Services Taxes Frequently Asked Questions
8
Multnomah County. Multnomah County Preschool For All Personal Income Tax
9
Multnomah County. Preschool For All Personal Income Tax FAQs
10
Oregon Department of Revenue. Statewide Transit Tax
11
Oregon.gov – Newsroom. 2026 Tax Season Opens January 26
12
Oregon Department of Revenue. Penalties and Interest for Personal Income Tax