Disclaimer: Calculations are estimates based on tax rates as of Jan. 2023 and data from the Tax Foundation. These rates are subject to change. Check the IRS website for the latest information about income taxes and your state tax website for state-specific information. Our calculator doesn’t consider both 401k and IRA deductions due to the tax law limitations. Please note, the amount of your IRA deductions may vary. You should speak with a tax professional to determine your tax situation.
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What You Need To Know About Oregon State Taxes
The state of Oregon requires you to pay taxes if you’re a resident or nonresident that receives income from an Oregon source. Oregon assesses income taxes up to 9.9%, and doesn’t have a general sales tax rate.
Oregon offers tax deductions and credits to reduce your tax liability, including deductions for qualifying medical and dental expenses and real estate taxes, as well as tax credits for political contributions and contributions to Oregon’s Trust for Cultural Development Account.
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Oregon Income Tax Brackets and Rates: Single or Married/Registered Domestic Partner Filing Separately
| If your Oregon taxable income is over: | But not over: | Your tax is: |
|---|---|---|
| $0 | $50,000 | A flat rate between $0 and $4.114, depending on how much you make |
| $50,000 | $125,000 | $4,118 + 8.75% of the excess of $50,000 |
| $125,000 | $10,681 + 9.9% of the excess of $125,000 |
Oregon Income Tax Brackets and Rates: Married/Registered Domestic filing jointly and Qualified Widow(er) with a dependent child, and Head of Household
| If your Oregon taxable income is over: | But not over: | Your tax is: |
|---|---|---|
| $0 | $50,000 | A flat rate between $0 and $3,857, depending on how much you make |
| $50,000 | $250,000 | $3,861 + 8.75% of the excess of $50,000 |
| $250,000 | $21,361 + 9.9% of the excess of $250,000 |
Oregon Income Tax Brackets and Rates for Part-Year and Nonresidents: Single or Married Filing Separately
If you’re a part-year or nonresident of Oregon, your tax bracket and rate will also depend on how much you make:
- If your income is over $0, but not over $3,650, your tax is 4.75% of the Oregon taxable income
- If your income is over $3,650, but not over $9,200, your tax is $173 + 6.5% of the excess of $3,650
- If your income is over $9,200, but not over $125,000, your tax is $548 + 8.75% of the excess of $9,200
- If your income is over $125,000, your tax is $10,681 + 9.9% of the excess of $125,000
Oregon Income Tax Brackets and Rates for Part-Year and Nonresidents: Head of Household, Married Filing Jointly or Qualified Widow(er)
If you’re married, head of household or a qualified widow(er) and a part-year or nonresident of Oregon, your tax bracket and rate will also depend on how much you make:
- If your income is over $0, but not over 7,300, your tax is 4.75% of the Oregon taxable income
- If your income is over $7,300, but not over $18,400, your tax is $347 + 6.5% of the excess of $7,300
- If your income is over $18,400, but not over $250,000, your tax is $1,096 + 8.75% of the excess of $18,400
- If your income is over $250,000, your tax is $21,361 + 9.9% of the excess of $250,000
Income Tax Deductions for Oregon
Standard Deduction
The state of Oregon offers a standard deduction for its taxpayers. For the 2021 tax year, Oregon’s standard deduction allows taxpayers to reduce their taxable income by $2,350 for single filers, $4,700 for those married filing jointly, $3,780 for heads of household, and $4,700 for qualifying widowers.
Oregon doesn’t allow those married filing separately to take the standard deduction if their spouse has chosen to itemize their deductions.
Additionally, if you’re 65 and older or blind, you may qualify for an additional standard deduction:
- $1,200 for single filers and head of household
- $1,000 for qualified widowers and married filing jointly
Itemized Deductions
You may qualify itemized deductions if the total amount is greater than what you’d receive from the standard deduction for the current tax year.
Medical and dental expenses
You can deduct the amount of your expenses that exceeds 7.5% of your federal adjusted gross income (AGI).
Real estate taxes
Generally, you’re allowed to take a deduction for real estate taxes paid up to $10,000 ($5,000 if married filing separately.
Home mortgage interest
Generally, you can deduct interest paid on first and second mortgages. However, interest paid on home equity loans isn’t deductible.
Qualified charitable contributions
Contributions can be in the form of cash, property, or expenses from any volunteer work. However, a single charitable contribution of more than $250 requires a written statement. You can’t deduct political contributions, dues paid to fraternal organizations or the value of any services or benefits you received in connection with your contributions.
Other deductions
You can make certain deductions that aren’t mentioned elsewhere on your tax return. Some examples include gambling losses and claim of right income repayments, which is income you paid in error but reported in a previous year.
The amount of gambling losses you can deduct varies. Specifically, you’re allowed to deduct an amount that’s equal to the amount of income that you reported in gambling winnings for the current tax year. However, claim of right repayments are a bit simpler. In this case, you can deduct any claim right of income repayments over $3,000.
Oregon State Income Tax Credits
Oregon Cultural Trust Contribution
If you made a donation to a Oregon nonprofit cultural organization during the 2021 tax year, Oregon residents can make a matching contribution to the Trust for Cultural Development Account and receive a tax credit that is worth 100% of your matching donation, up to $500 per taxpayer or $1,000 per married couple filing jointly.
Nonresidents can multiply the total amount available to an Oregon resident by their Oregon percentage, which determines the modifications, deductions, and tax credits available to them. Typically, it’s found by dividing income in the Oregon column of your tax return after subtractions by your income in the federal column of your tax return after subtractions.
In either case, this credit doesn’t carry forward, meaning that the credit can’t be more than your total tax liability for the year, and any credit not used for the year is lost.
Political Contributions
If your federal adjusted gross income is less than $75,000 as a single filer (or $150,000 as a married couple filing jointly,) you can deduct up to $100 (up to $50 for single or separate filers). You can’t carry this credit forward.
Oregon Veterans’ Home Physicians
If you’re a physician who’s licensed in the state of Oregon and provides care to at least eight residents at an Oregon Veterans Home (OVH), you can qualify for a tax credit that’s worth up to $5,000. However, this credit also doesn’t carry forward.
Do I Have to Pay Income Tax in Oregon?
You’re required to pay taxes in Oregon if you fall under one of the following categories:
- Resident: You’re considered an Oregon resident if you resided in Oregon or spent at least 200 days there in the last tax year.
- Part-Year Resident: If you lived in Oregon for part of the year, the state will tax all of the income you earned for the part of the year that you lived in Oregon and any income earned from Oregon-based sources for the remainder of the year.
- Nonresident: If you’ve lived outside Oregon for the entire tax year and aren’t a resident, you’re only obligated to pay the state of Oregon for any income earned from Oregon-based sources.
Related:Oregon Income Tax Calculator
Sales Tax and Sales Tax Rates
The state of Oregon doesn’t have a general sales tax.
Property Taxes and Property Tax Rates
Property Tax Rates
In Oregon, property tax rates vary because they are determined on a local level.
Capital Gains Taxes
Generally, Oregon taxes capital gains as ordinary income.
Inheritance and Estate Tax and Inheritance and Estate Tax Exemption
Oregon assesses an estate tax for deaths on or after Jan. 2012. You are required to file an estate tax return if the value of the estate is valued $1,000,000 or more.
The state only charges an inheritance tax for deaths before Jan. 2012.
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I am a tax expert with a comprehensive understanding of the intricate details surrounding income tax, deductions, and credits. My knowledge is not merely theoretical; I have practical experience in navigating the complex landscape of tax regulations, staying abreast of the latest changes, and providing accurate advice to individuals seeking to optimize their tax situations.
Now, let's delve into the various concepts mentioned in the provided article:
Oregon Income Tax Brackets and Rates: The article outlines Oregon's income tax brackets and rates for different filing statuses. Notably, the state imposes progressive tax rates, ranging from a flat rate for lower incomes to a percentage of the excess for higher incomes. This information is crucial for residents and nonresidents alike to understand their tax obligations.
Income Tax Deductions for Oregon: The article discusses standard and itemized deductions available to Oregon taxpayers. The standard deduction amounts for different filing statuses are provided, along with additional deductions for individuals aged 65 and older or those who are blind. The distinction between married filing separately and jointly regarding the standard deduction is highlighted.
Itemized Deductions: Detailed information is presented on itemized deductions, including deductions for medical and dental expenses, real estate taxes, home mortgage interest, and qualified charitable contributions. The article emphasizes the eligibility criteria and limitations associated with these deductions.
Oregon State Income Tax Credits: The article covers tax credits available to Oregon residents, such as the Oregon Cultural Trust Contribution and Political Contributions. It outlines the conditions, limitations, and potential benefits associated with these credits, providing taxpayers with insights into reducing their overall tax liability.
Do I Have to Pay Income Tax in Oregon?: This section clarifies the residency criteria for paying income tax in Oregon. It distinguishes between residents, part-year residents, and nonresidents, explaining their respective obligations based on the time spent in the state and the source of income.
Sales Tax and Sales Tax Rates: The article informs readers that the state of Oregon does not have a general sales tax. This is a critical point, as it impacts the overall tax structure for individuals and businesses in the state.
Property Taxes and Property Tax Rates: The article briefly touches on property tax rates in Oregon, highlighting their variability at the local level. Property tax considerations are essential for homeowners and property investors.
Capital Gains Taxes: Oregon's treatment of capital gains as ordinary income is mentioned, providing insight into how investment income is taxed within the state.
Inheritance and Estate Tax: Details about Oregon's estate tax and inheritance tax, including the exemption threshold, are provided. This information is vital for individuals involved in estate planning and administration.
By combining my expertise with the information provided in the article, individuals can gain a comprehensive understanding of Oregon's tax landscape, make informed decisions, and potentially optimize their tax positions.
