Oregon Income Tax Rates and Brackets: 2026 Tiers and Kicker Credit

The Oregon income tax rate and brackets for 2026 use four marginal rates — 4.75%, 6.75%, 8.75%, and 9.9% — with the top rate reaching single filers at $125,000 of taxable income and joint filers at $250,000.¹ Because Oregon has no general sales tax, the personal income tax carries most of the state’s revenue load, so the rates and bracket cutoffs matter more here than in states where sales tax shares the burden.² The rates themselves are set by statute; the Department of Revenue adjusts the dollar thresholds each year for inflation.³

Oregon uses a marginal system. Only the dollars within each range are taxed at that range’s rate, so crossing into a higher bracket does not raise the rate on income you already earned below the threshold.

2026 Brackets for Single Filers and Married Filing Separately

Single filers and those filing separately from a spouse share the narrower bracket schedule:¹

4.75% on taxable income up to $4,550
6.75% on taxable income from $4,550 to $11,400
8.75% on taxable income from $11,400 to $125,000
9.9% on taxable income over $125,000

2026 Brackets for Joint Filers, Head of Household, and Qualifying Surviving Spouse

Married couples filing jointly, head-of-household filers (typically single parents), and qualifying surviving spouses get wider brackets. More income is taxed at the lower rates before the 9.9% top rate applies:¹

4.75% on taxable income up to $9,100
6.75% on taxable income from $9,100 to $22,800
8.75% on taxable income from $22,800 to $250,000
9.9% on taxable income over $250,000

A married couple filing jointly can earn up to $250,000 before hitting 9.9%, while a single filer reaches that top rate at $125,000.

What Reduces the Rate You Actually Pay

Your marginal rate applies to taxable income, not gross pay. Three Oregon-specific reductions shrink that base before the rates get applied.

Oregon Standard Deduction

Oregon has its own standard deduction, separate from the federal one. For 2026:⁴

Single or married filing separately: $2,910
Head of household: $4,685
Married filing jointly or qualifying surviving spouse: $5,820

Federal Tax Subtraction

Oregon lets you subtract the federal income tax you paid during the year from your Oregon taxable income, which most states do not allow. The 2026 cap is $8,750.¹ The subtraction phases out for higher earners: single filers lose it entirely once wages reach $145,000, and joint filers lose it at $290,000. You need your completed federal return in hand to calculate it.

Personal Exemption Credit

Oregon offers a personal exemption credit of $263 for 2026, claimed for you, your spouse (if filing jointly), and each qualifying dependent.¹ This is a credit against tax owed, not a deduction from income, but it is not refundable: it can bring your tax to zero and no lower. The credit phases out above $100,000 of adjusted gross income for single and separate filers, and above $200,000 for everyone else.⁵

Portland Metro Local Income Taxes

If you live in the greater Portland area, the state rate is not the whole story. Two local income taxes stack on top for many residents.

Metro Supportive Housing Services Tax

The Metro Supportive Housing Services (SHS) tax funds homelessness services across the Metro regional district, which covers most of Clackamas, Multnomah, and Washington counties. The rate is 1% of taxable income above an exemption threshold. For tax years 2021 through 2025 the exemption was $125,000 for single filers and $200,000 for joint filers.⁶ Starting with tax year 2026, those thresholds adjust annually for inflation.⁷ The quarterly estimated payment threshold also rose for 2026: taxpayers with expected SHS liability of $5,000 or more must now make quarterly payments, up from $1,000.

Multnomah County Preschool for All Tax

Multnomah County imposes a second local tax to fund its Preschool for All program. The 2026 rates:⁸

Single filers: 1.5% on taxable income over $125,000, plus an additional 1.5% (3% total) on income over $250,000
Joint filers: 1.5% on taxable income over $200,000, plus an additional 1.5% (3% total) on income over $400,000

Beginning January 1, 2027, the rates rise by 0.8 percentage points: 1.5% becomes 2.3%, and 3% becomes 3.8%.⁸

Combined Marginal Rate

If you live in Multnomah County within the Metro district, both local taxes apply on top of the state tax. A single filer earning $300,000 in 2026 would owe the state’s 9.9% top rate, the Metro SHS 1%, and the Multnomah County 3% on portions of that income, producing a combined marginal rate above 13% before federal tax.

The Oregon Kicker Credit

Oregon has an unusual feature called the “kicker.” When actual state revenue exceeds the official forecast by more than 2% over a two-year budget cycle, the surplus is returned to taxpayers as a refundable credit on the next return. For 2025 returns filed in 2026, eligible taxpayers can claim a kicker equal to 9.863% of their 2024 Oregon personal income tax liability.⁹ If your 2024 Oregon tax was $5,000, your kicker on the 2025 return is roughly $493. Because the credit is refundable, it can increase your refund even if you owe no tax.

Part-Year Residents and Nonresidents

Full-year Oregon residents pay tax on all income regardless of where it was earned, using Form OR-40. If you lived in Oregon for only part of the year, you file Form OR-40-P as a part-year resident. If you lived outside Oregon the entire year but earned income from Oregon sources, you file Form OR-40-N as a nonresident.¹⁰

Nonresidents are taxed only on Oregon-sourced income, which includes wages from work performed in the state and income from Oregon business operations or property. Retirement distributions tied to services performed in Oregon also count as Oregon-sourced income for former residents who have moved away. A special-case rule treats you as a nonresident if you keep no permanent home in Oregon, maintain a permanent home elsewhere, and spend 30 days or fewer in the state during the year.

The same four statutory rates and the same bracket thresholds apply to part-year residents and nonresidents, but only Oregon-source income is run through them.

1
Oregon Department of Revenue. Oregon Withholding Tax Formulas 2026
2
Oregon Department of Revenue. Sales Tax in Oregon
3
Oregon State Legislature. Oregon Revised Statutes 316.037 – Imposition and Rate of Tax
4
Oregon.gov. 2026 Oregon Combined Payroll Tax Report Instructions
5
Oregon Department of Revenue. Tax Benefits for Families
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
Oregon Department of Revenue. Fact Sheet – Oregons Surplus Revenue Kicker Credit
10
Oregon.gov. 2025 Form OR-40-N and Form OR-40-P Instructions