Oregon state taxes at a glance
| Individual income tax | Graduated (bracket) income tax |
|---|---|
| Rate structure | Four graduated rates from 4.75% up to 9.9% on income above $125,000 (single) in Tax Foundation’s 2026 table. Oregon has no statewide sales tax. Verify current-year figures. |
| Tax agency | Oregon Department of Revenue |
| Main individual return | Form OR-40 (full-year residents); Form OR-40-P (part-year residents); Form OR-40-N (nonresidents) |
| Local income taxes | No general local income tax, but Metro (Portland area) and Multnomah County levy income taxes on higher earners, and a statewide transit tax is withheld from wages. |
| Sales tax | No statewide sales tax and no local sales taxes. |
| Property tax | Assessed by counties. Measure 50 limits the annual growth of a property’s assessed value (generally to 3%), so assessed value can be well below market value. |
| Retirement & Social Security | Oregon does not tax Social Security benefits. Other retirement income is generally taxable, with a credit available for some retirees; check the Department. |
Verify current-year figures: state rates, brackets, credits and filing rules change. Treat this page as a starting orientation and confirm details on the Oregon Department of Revenue website.
How Oregon income tax works
Oregon’s income tax has four brackets: Tax Foundation’s 2026 table shows 4.75% on the first $4,550 of taxable income for single filers, 6.75% to $11,400, 8.75% to $125,000, and 9.9% above that (double the thresholds for joint filers). Oregon allows a deduction for federal income tax paid, up to a cap, which is uncommon, and replaces personal exemptions with a tax credit that is not available at higher incomes ($100,000 single, $200,000 joint federal AGI). Oregon’s top brackets are not indexed to inflation, according to Tax Foundation.
Oregon is one of only five states with no statewide sales tax (with Alaska, Delaware, Montana and New Hampshire), so the state leans on income and corporate taxes. The kicker is a distinctive feature: when state revenue exceeds forecasts by a set margin, the surplus is returned as a refundable credit on the next return. For returns filed in 2026, the Department said you must have filed a 2024 Oregon return and had Oregon tax liability for 2024; the credit is 9.863% of that liability and is applied on the return rather than mailed separately. Because the kicker depends on the state’s revenue forecast, do not assume it will recur.
Portland-area residents face additional local taxes: Metro’s Supportive Housing Services tax and Multnomah County’s Preschool for All tax apply to higher incomes, and a statewide transit tax is withheld from paychecks. Oregon also has a Corporate Activity Tax on businesses and Paid Leave Oregon payroll contributions, both separate from the personal return. For property, Measure 50 caps how fast assessed values grow. See our no-income-tax-states guide for contrast.
Filing your Oregon return and free options
Oregon runs its own free filing program: Direct File Oregon through Revenue Online is an interview-style program with no income limit that lets full-year residents e-file original and amended OR-40 returns directly with the state, free of charge. Because the IRS’s Direct File was discontinued, you must enter your federal return information manually. The Department says it is in its third year; pair it with Free File Fillable Forms for the federal return (see our explainer). Free guided software is also available from Free File Alliance partners, with AGI limits that varied by provider, from about $32,000 to $89,000, in the Department’s 2026 news release.
See our free filing hub for the federal return and VITA for in-person help. For deadlines and extensions see extensions explained.
For the federal side, see our guides to free federal filing options and the complete guide to filing taxes.
Things Oregon residents often ask about
- Kicker credit: depends on the state’s revenue forecast and on having filed in the prior year with liability; the 2026 credit was 9.863% of 2024 liability.
- Direct File Oregon: free, state-run, no income limit, manual entry of federal data.
- Federal tax subtraction: Oregon allows a capped deduction for federal tax paid.
- Portland-area taxes: Metro and Multnomah County add income taxes on higher earners.
- No sales tax: but income tax rates are higher than most states.
Official Oregon links
- Oregon Department of Revenue
- Oregon: Direct File Oregon
- Oregon: surplus (“kicker”) credit
- Federation of Tax Administrators: State tax agencies
Frequently asked questions
Does Oregon have a sales tax?
No. Oregon has no statewide sales tax and no local sales taxes.
What is the Oregon kicker?
A surplus credit returned to taxpayers when state revenue exceeds forecasts. For returns filed in 2026 it was 9.863% of 2024 Oregon liability and applied on the return.
Is there free state filing in Oregon?
Yes. Direct File Oregon is a free state-run program with no income limit for full-year residents, and Free File partners offer free guided software with income limits.
General information only — not tax, legal or financial advice. Tax figures change every year; verify the current numbers at IRS.gov or with a qualified professional. Read the full disclaimer.