Does Oregon have a special capital gains tax rate?

No. Oregon taxes capital gains as ordinary income using its graduated brackets up to 9.9 percent. There is no reduced state rate for long-term gains, so a large gain can push you toward Oregon's top 9.9 percent marginal rate.

How are long-term federal capital gains taxed?

Long-term gains use preferential federal rates of 0, 15, or 20 percent depending on your total taxable income. The gain stacks on top of your ordinary income, so part may fall in the 0 percent band while the rest is taxed at 15 or 20 percent.

What is the net investment income tax?

The NIIT is an extra 3.8 percent surtax on investment income, including capital gains, for taxpayers with modified adjusted gross income above 200,000 dollars single or 250,000 dollars married filing jointly. It applies only to the amount above that threshold.

How are short-term gains taxed?

Assets held one year or less produce short-term gains, taxed as ordinary income at your federal marginal rate of 10 to 37 percent plus Oregon's ordinary rates up to 9.9 percent. Short-term gains usually cost considerably more than long-term gains.

Can I lower my Oregon capital gains tax?

Holding assets more than a year for long-term federal rates, harvesting losses to offset gains, and timing sales into lower-income years all help. Because Oregon gives no preferential rate, deferring or spreading gains is especially valuable in Oregon.

Oregon Capital Gains Tax Calculator

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Selling an investment in Oregon triggers two taxes: the federal capital gains tax and Oregon’s state income tax. Because Oregon gives no break for long-term gains, the state side is simply your ordinary rate, which tops out at a steep 9.9 percent. This calculator combines both so you see the full cost of a sale.

How it works

Federal treatment depends on the holding period. Long-term gains (held more than a year) use preferential rates that stack on your other taxable income:

0%  up to $47,025 single / $94,050 joint of total income
15% from there up to $518,900 / $583,750
20% above those thresholds

Short-term gains (held a year or less) are taxed at your ordinary federal rate. A 3.8 percent net investment income tax applies to gains above 200,000 dollars single or 250,000 dollars joint of modified AGI. Oregon then taxes the entire gain as ordinary income at 4.75 / 6.75 / 8.75 / 9.9 percent, stacked on your other income.

Example

A single filer with 80,000 dollars of other income and a 20,000 dollar long-term gain has used the 0 percent band, so the federal gain is taxed at 15 percent (3,000 dollars). Oregon adds roughly 9 percent (about 1,800 dollars). Total tax on the gain is near 4,800 dollars, leaving about 15,200 dollars after tax.

Notes

This is a simplified model. Real returns involve loss carryovers, the exact NIIT calculation, qualified dividends, and Oregon’s standard deduction and credits, none of which are fully modeled here. Use it for planning and confirm with irs.gov and oregon.gov/dor.