Payroll and Self-Employment Tax Information (2024)

Effective January 1, 2024, the tax rate increased to 0.8137% of the wages paid by an employer and the net earnings from self-employment for services performed within the TriMet District boundary. Employers should apply the new rate with their reporting related to wages for the first quarter of 2024. Self-employed individuals should use the new rate when first reporting earnings for 2024.

The Mass-Transit (TriMet) Tax is paid to the Oregon Department of Revenue and businesses will need to file using the EIN assigned by the IRS. The TriMet Tax is based on where the work is performed, and whether that location is within the TriMet District Boundary.

• Employer Tax
• Employee Tax
• TriMet District Boundary

Employer Payroll Tax

Oregon employers are responsible for withholding the new statewide transit tax from employee wages. Starting July 1, 2018, the tax, which is one-tenth of 1 percent (or 0.001), must be withheld from the wages of Oregon residents — regardless of where the work is performed — as well as nonresidents performing services in Oregon.

Employers must also report and remit the taxes withheld quarterly (annually for domestic or agricultural employers). They also need to reconcile their quarterly or annual reports on their annual reconciliation return.

• Employers can file electronically through the Oregon Department of Revenue’s Revenue Online, or they can file a paper return.
• Employers who don’t withhold the tax or don’t file and pay on time may be subject to a penalty of $250 per employee, up to $25,000 for each tax period, in addition to any other penalties or interest allowable under state laws.

Employee Payroll Tax

Starting July 1, 2018, you’ll see a new item on your paystub for Oregon’s statewide transit tax. The tax is one-tenth of one percent (0.001), or $1 per $1,000.

Your employer will generally withhold the tax automatically — just like the personal income tax — so you shouldn’t need to do anything. (If you are an Oregon resident performing services outside Oregon for a non-Oregon employer, then you should ask your employer to withhold this tax from your wages as a courtesy — otherwise, you will be responsible for reporting and paying the tax yourself when you file your personal income tax return.) Unlike the personal income tax, there’s no withholding exemption for this tax.

Revenue from the statewide transit tax will go to expanding public transportation throughout Oregon. For more information on how the tax revenues will be used, take a look at the Oregon Department of Transportation’s Keep Oregon Moving page.

Learn more about the tax from the Oregon Department of Revenue.

TriMet District boundary

To find out if a business or property is located within the TriMet District boundary, check the interactive map or refer to the list of ZIP codes or boundary map below. If you have any questions, give us a call at 503-962-6466.

District Boundary Map
PDF

Learn more

• District boundary description in TriMet Code PDF
• Ordinance No. 325 Altering the District Boundary, and Amending TriMet Code Chapter 3 PDF
• TriMet Code: Chapter 13 - Payroll Tax
• TriMet Code: Chapter 14 - Self-Employment Tax
• Payroll tax info from the Oregon Department of Revenue oregon.gov
• Self-employment tax info from the Oregon Department of Revenue oregon.gov