Portland income tax rates stack in layers: Oregon’s state income tax runs from 4.75% up to 9.9%, the Metro Supportive Housing Services tax adds 1% on higher incomes, and the Multnomah County Preschool for All tax adds another 1.5% to 3% on top of that. For a single filer earning over $250,000, the combined top marginal rate reaches roughly 13.9%. Portland itself does not levy a traditional city income tax, but it does charge a flat annual arts tax. Businesses face a separate set of rates.
Oregon State Income Tax
Oregon taxes personal income through four graduated brackets: 4.75%, 6.75%, 8.75%, and 9.9%. The top 9.9% rate begins at $125,000 of taxable income for single filers and $250,000 for joint filers under ORS 316.037.1Oregon State Legislature. Oregon Code 316.037 – Imposition and Rate of Tax The lower bracket thresholds adjust annually for inflation, so the exact cutoffs shift each year.
Oregon starts with your federal adjusted gross income and applies state-specific additions and subtractions. Because Oregon has no sales tax, income tax rates sit higher than in many other states. If you expect to owe $1,000 or more after withholding and credits, quarterly estimated payments are generally required.
Metro Supportive Housing Services Tax
The Metro regional government charges a 1% tax on personal income above set thresholds to fund homelessness services. For the 2026 tax year, the thresholds are $128,000 for single filers and $205,000 for joint filers, up from $125,000 and $200,000 after the first inflation adjustment.2City of Portland. Personal Income Tax Filing and Payment Information Starting in 2026, the thresholds adjust annually for inflation.3Metro. Pay My Supportive Housing Services Taxes
The tax is marginal, so you pay 1% only on income above the threshold. A single filer earning $150,000 in 2026 owes 1% on $22,000, or $220. Metro’s district covers parts of Multnomah, Clackamas, and Washington counties, so the tax reaches beyond Portland’s city limits. It applies to residents of the district, people who work inside it, and anyone with income sourced there, including nonresidents.4Metro. Supportive Housing Services Taxes Frequently Asked Questions
Multnomah County Preschool for All Tax
Multnomah County funds its universal preschool program through a two-tier personal income tax. The first tier is 1.5% on income above $125,000 for single filers or $200,000 for joint filers. The second tier adds another 1.5% on income above $250,000 (single) or $400,000 (joint), for a total 3% marginal rate at the top.5Multnomah County. Multnomah County Preschool For All Personal Income Tax
A single filer earning $300,000 pays 1.5% on the $125,000 between the two thresholds ($1,875), plus 3% on the $50,000 above $250,000 ($1,500), for a preschool tax of $3,375. That runs on top of state and Metro taxes.
A 0.8% rate increase is scheduled for January 1, 2027. At that point, the 1.5% rate becomes 2.3% and the 3% rate becomes 3.8%.5Multnomah County. Multnomah County Preschool For All Personal Income Tax The 2026 tax year still uses the current 1.5% and 3% rates.
Portland Arts Tax
Portland charges a flat annual arts tax to fund arts education and grants. For the 2026 tax year, the city council amended the structure: the tax is $50 per individual ($100 for joint filers), and only individuals earning at least $20,000 owe it.6City of Portland. Amend Arts Tax Code to Provide Tax Relief, Promote Sustainability Previously the tax was $35 and applied to nearly anyone with $1,000 or more of annual income.
You owe it if you are a Portland resident age 18 or older who meets the income threshold. There is no proration for partial-year residency: if you live in Portland for any part of the year, you owe the full amount. Households at or below the federal poverty level can request an exemption.7Portland.gov. Arts Tax Filing and Payment Information
The arts tax has no extension option. It is due April 15. A $15 penalty is added immediately for late payment, plus another $20 fee if the balance remains unpaid after six months. After that, the city refers the account to a private collection agency.
Combined Marginal Rates by Income
What Portland residents actually pay depends on where their income lands. For a single filer in 2026:
- Under $125,000: Oregon state tax only, reaching 8.75% at the margin for most of this range, plus the $50 arts tax if income is at least $20,000.
- $125,000 to $128,000: Oregon at 9.9% plus Preschool for All at 1.5%, for a combined marginal rate of 11.4%.
- $128,000 to $250,000: Oregon at 9.9%, Metro SHS at 1%, and Preschool for All at 1.5%, for 12.4%.
- Over $250,000: Oregon at 9.9%, Metro SHS at 1%, and Preschool for All at 3%, for 13.9%.
Joint filers hit each layer at higher thresholds ($200,000 for the preschool tax, $205,000 for Metro SHS, and $400,000 for the 3% preschool tier), but the top combined marginal rate is still 13.9%. The federal SALT deduction is capped, so it does not fully offset these local taxes for high earners.
Business Income Taxes
Businesses operating in the Portland area face a separate set of taxes on net income, not the personal rates above. The City of Portland Business License Tax is 2.6% of net income.8Portland.gov. Business Tax Filing and Payment Information The Multnomah County Business Income Tax is 2% of apportionable net income and is collected by the City of Portland.9Multnomah County. Multnomah County Business Income Tax (MCBIT) The Metro SHS Business Income Tax adds 1% for businesses with gross receipts above $5 million operating in the Metro district; sole proprietors subject to the Portland or Multnomah County business taxes are exempt and instead pay the Metro SHS personal income tax on their business earnings.
A business subject to all three pays a combined 5.6% on net income, plus the 1% Metro SHS business tax when gross receipts exceed $5 million. These sit on top of Oregon’s corporate excise tax, or of pass-through income that flows to the owner’s personal return.
Filing and Penalties
Oregon state returns are due April 15. Full-year residents report all income regardless of source; part-year residents and nonresidents report only Oregon-source income using Form OR-40-P or Form OR-40-N.10Oregon Department of Revenue. 2025 Oregon Income Tax Form OR-40-N and Form OR-40-P Instructions The Metro SHS and Multnomah County Preschool for All taxes require separate returns filed through the City of Portland’s Revenue Division, which administers both programs; payments use Form PIT-V.2City of Portland. Personal Income Tax Filing and Payment Information
Missing April 15 triggers a 5% late-payment penalty on any unpaid Oregon state tax, even with an extension on file.11Oregon Department of Revenue. Penalties and Interest for Personal Income Tax Going more than three months past the due date without filing adds a 20% failure-to-file penalty, for a combined 25% of unpaid tax.12Oregon Public Law. Oregon Code ORS 314.400 – Penalty for Failure to File Report or Return or to Pay Tax When Due Interest accrues daily on unpaid balances from the original due date. The local taxes have their own estimated payment obligations, and falling behind on those creates penalty exposure separate from the state.