Oregon State Income Tax

Despite being one of the first Western states to adopt a state income tax, Oregon's current system is only mildly progressive. The highest marginal rate is 9.9%, but only a small portion of families earn that much.

Oregon taxes individual income and some business income. Oregon State Income Tax rates range from 4.75 to 9.90 percent, and they are progressive. It applies to those who make more than $125,000 per year (that figure is doubled for married couples filing jointly). The state has no sales tax, but local governments levy property taxes that average around the U.S. national average. Oregon’s personal income tax is based on your federal taxable income with limited additions and subtractions. You can find information about these additions and subtractions in Publication OR-17, Oregon’s individual income tax guide.

Also, you can find estimated tax payment instructions and a worksheet for filing a return on Revenue Online. You can also make an estimate payment by mailing in a voucher. On average, it takes about two weeks to receive a refund. You can track your refund using the “Where’s My Refund?” tool on the Revenue website.

How to Pay Oregon State Income Tax?

There are a few ways to pay Oregon state income tax, including online. You can also make a payment before filing or during an extension. You can use the same payment options for both federal and state taxes.

Revenue Online is the preferred method by the Oregon Department of Revenue. It allows for fast and secure electronic payments.

Oregon State Income Tax Exemptions
Oregon State Income Tax 1

Oregon State Income Tax Exemptions

Unlike federal income tax, Oregon does not offer traditional personal exemptions that directly reduce your taxable income. However, there are some credit programs that can effectively lower your tax liability:

  • Personal Exemption Credit: Oregon offers credit for qualifying dependents, including your children and certain relatives. For tax year 2023, the maximum credit is $236 for each qualifying dependent.
  • Dependent with a Disability Credit: An additional credit is available if you have a child with a qualifying disability.

Oregon State Income Tax Due Dates

As a result of the COVID-19 crisis, the Department of Revenue has postponed the deadline for filing individual tax returns and paying first-quarter estimated taxes. However, the agency has not postponed the due date for submitting an appeal or waiver request of state income tax penalty and interest charges.

The deadline for submitting 2023 Oregon and federal personal tax returns is Monday, April 15. Taxpayers will get their refund the fastest by filing electronically and choosing direct deposit. The Oregon Department of Revenue says it will process all electronically filed returns in the order received.

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