Oregon Tax Calculator - OR State Income Tax Calculator 2025
Calculate your Oregon state income tax with progressive rates from 4.75% to 9.9%. Our comprehensive calculator helps Oregon residents and potential relocators understand the complete tax implications of living in the beautiful Pacific Northwest state with professional accuracy and tax optimization strategies.
Oregon Tax Calculator
Calculate OR state income tax with progressive rates and comprehensive deduction analysis
How to Use the Oregon Tax Calculator
Our Oregon tax calculator provides accurate state income tax calculations using the most current 2025 tax rates and brackets. Oregon has a progressive income tax system with rates ranging from 4.75% to 9.9%, making it one of the higher-tax states in the nation. The calculator includes Oregon-specific features like the unique kicker credit and various state deductions.
Step-by-Step Instructions:
- Income Information: Enter your annual income and select your filing status. Include all income subject to Oregon taxation.
- Deductions: Choose between standard or itemized deductions, including Oregon-specific deductions and credits.
- Oregon Features: Include dependents, Oregon kicker credit eligibility, and political contribution credits.
- Review Results: Analyze your total tax liability, effective rate, and potential relocation savings.
Oregon Tax Features:
Progressive System: Oregon uses a progressive tax system with multiple brackets.
No Sales Tax: Oregon is one of five states with no statewide sales tax.
Kicker Credit: Unique surplus refund program when state revenues exceed forecasts.
Political Contribution Credit: Up to $100 credit for political contributions to Oregon candidates.
Oregon Tax Law for 2025
Oregon operates a progressive income tax system with four tax brackets ranging from 4.75% to 9.9%. The state is known for having no sales tax but relatively high income tax rates. Oregon also features unique tax benefits like the kicker credit and various deductions that can help reduce your overall tax burden.
2025 Oregon Tax Updates:
- Tax Brackets: Four progressive brackets with rates from 4.75% to 9.9%
- Standard Deduction: Varies by filing status, updated annually
- Personal Exemption: Credit amount varies by income level
- Kicker Credit: Potential refund based on state revenue surplus
Oregon Residency Rules:
- Full-Year Residents: Taxed on all income regardless of source
- Non-Residents: Taxed only on Oregon source income
- Part-Year Residents: Pro-rated taxation based on residency period
- Domicile Rules: Clear rules for determining tax residency
Oregon Tax Benefits:
- No Sales Tax: No statewide sales tax on purchases
- Retirement Income: Some retirement income deductions available
- Political Credits: Tax credits for political contributions
- Kicker Refunds: Potential additional refunds in surplus years
Tax Planning Strategies for Oregon:
- Timing Income: Strategic timing of income recognition
- Retirement Planning: Optimize retirement account contributions
- Charitable Giving: Maximize deductible charitable contributions
- Political Contributions: Take advantage of political contribution credits
Understanding Oregon Taxation
Progressive Tax System
- Four tax brackets from 4.75% to 9.9%
- Progressive structure with increasing rates
- Higher earners pay higher marginal rates
- Tax brackets adjusted annually for inflation
- Competitive rates compared to neighboring states
No Sales Tax Benefits
- One of only five states with no sales tax
- No local sales taxes either
- Significant savings on purchases
- Popular shopping destination for neighbors
- Offset for higher income tax rates
Unique Oregon Features
- Kicker credit for state revenue surpluses
- Political contribution tax credits
- No local income taxes in most areas
- Retirement income deductions available
- Environmental and energy tax credits
Regional Considerations
- No Washington state border shopping tax
- Property taxes vary by county
- Some local income taxes in certain cities
- Transit taxes in Portland metro area
- Economic development zones available
Frequently Asked Questions
What is Oregon's kicker credit and how does it work?
Oregon's kicker credit is a unique program that refunds surplus state tax revenue to taxpayers when collections exceed forecasts by 2% or more. This credit appears on your tax return in years when the state has a revenue surplus, providing additional money back to taxpayers.
How does Oregon's lack of sales tax affect my overall tax burden?
Oregon is one of only five states with no statewide sales tax, which can result in significant savings on purchases. This benefit often offsets some of the impact of Oregon's higher income tax rates, especially for higher earners who make substantial purchases.
Should I consider relocating from Oregon for tax savings?
Tax relocation decisions should consider your total tax burden, including income, property, and sales taxes. While states like Washington have no income tax, Oregon's lack of sales tax and unique benefits like the kicker credit may make it competitive depending on your spending patterns and income level.
What are Oregon's rules for remote work taxation?
Oregon taxes residents on all income regardless of where it's earned. If you're an Oregon resident working remotely for an out-of-state company, you'll owe Oregon income tax on that income, though you may be able to claim credit for taxes paid to other states.