How much state income tax does Oregon withhold?

Oregon uses graduated brackets from 4.75 percent up to a top rate of 9.9 percent. It is one of the higher state income taxes in the country, which is partly offset by Oregon having no statewide sales tax.

What is the Oregon statewide transit tax?

Oregon withholds a statewide transit tax of 0.1 percent on all wages earned by Oregon residents and on wages earned in Oregon by non-residents. It funds public transportation and is separate from the income tax.

What is the Paid Leave Oregon contribution?

Paid Leave Oregon funds paid family and medical leave through a payroll contribution. Employees pay 60 percent of the total contribution rate, which works out to roughly 0.6 percent of wages, deducted from each paycheck.

Does Oregon have a state disability insurance deduction?

Oregon does not have a traditional state disability insurance (SDI) payroll tax like California. Its closest equivalent is the Paid Leave Oregon program, which this calculator includes as a separate line.

Why is my Oregon paycheck smaller than a no-income-tax state?

Oregon's lack of a sales tax is balanced by a relatively high income tax, so wage earners see more withheld from each paycheck. The trade-off is that day-to-day purchases are not taxed at the register.

Oregon Paycheck Calculator

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Oregon is unusual: it has no statewide sales tax but a relatively high income tax, so most of your tax burden shows up in your paycheck. This calculator estimates your Oregon take-home pay after the state income tax, the statewide transit tax, Paid Leave Oregon, and federal FICA.

How it works

Your net pay is gross wages minus four deductions:

Oregon income tax. Subtract the standard deduction ($2,745 single, $5,495 married filing jointly), then run the remainder through Oregon’s brackets, which rise from 4.75% to 9.9%.
Statewide transit tax. A flat 0.1% of gross wages.
Paid Leave Oregon. The employee share, about 0.6% of wages.
FICA. Social Security (6.2% to the wage base) plus Medicare (1.45%).

Take-home is gross − Oregon tax − transit − paid leave − FICA. Federal income tax is excluded because it depends on your credits and W-4 elections.

Tips and example

A single filer earning $60,000 has $57,255 taxable after the standard deduction. Oregon income tax is roughly $4,800, the transit tax is $60, Paid Leave Oregon is about $360, and FICA is $4,590. Annual take-home lands near $50,190.

Because Oregon front-loads its taxes into wages, comparing it to a no-income-tax state on paycheck size alone is misleading — the absence of sales tax offsets much of the difference over a year.