High-income earners in Portland face a combined top marginal rate of almost 14.78 percent on their wage income and 13.9 percent on investment and other unearned income not derived from an ownership stake in a pass-through business. Including federal taxes, the combined marginal rates reach nearly 52 and 38 percent, respectively. Workers, business owners, and investors in Portland, Multnomah County, and the Metro region all experience these considerable burdens. Portland has the highest business taxes—on small and large businesses, and pass-throughs and corporations alike—and the second highest top marginal rate on wage income in the country.

• Refunds will be issued only in the event of overpayment, duplicate payments, or a payment made when no tax was due, and a refund was requested on your return.
• To determine whether your residence, workplace and/or earned business income is within Metro’s jurisdiction, enter the property address(es) into Metro’s boundary lookup tool.
• Oregon collects a state corporate income tax at a maximum marginal tax rate of 7.600%, spread across two tax brackets.
• High-income earners in Portland face a combined top marginal rate of almost 14.78 percent on their wage income and 13.9 percent on investment and other unearned income not derived from an ownership stake in a pass-through business.
• While putting money in these accounts shrinks your paycheck, it also lowers your taxable income (and, in the case of retirement accounts, simultaneously helps secure your financial future).

Pay Ratio Surtax (PRS)

In an era of dramatically increased mobility for individuals and businesses alike, that’s not a recipe for success. The 2024 tax rates and thresholds for both the Oregon State Tax Tables and Federal Tax Tables are comprehensively integrated into the Oregon Tax Calculator for 2024. This tool is freely available and is designed to help you accurately estimate your 2025 tax return. Employers must file quarterly withholding returns and annual withholding reconciliation returns for the Metro Supporting Housing Services (SHS) and Multnomah County Preschool For All (PFA) withholding tax programs with the City of Portland’s Revenue Division.

The 5 states with the highest property tax rates

Write $25 on the line of the W-4 that asks how much of an additional withholding you want to be taken from your paycheck. While this will result in slightly less money per paycheck, it could save you money come tax time. Taxpayers who are self-employed will have to pay the entire Social Security and Medicare contributions themselves. If you fall into this camp, make sure that during tax season you look into possible deductions to help recoup the money you spend on the “employer” portion of FICA taxes. For help filing your taxes and maximizing your deductions, consider working with a financial advisor who specializes in taxes.

Oregon is the only state in which the middle 20% of earners pay the lowest tax rate.

City, county, regional, and state taxes on individual and both net and gross business income combine to create a crushing tax wedgeA tax wedge is the difference between total labor costs to the employer and the corresponding net take-home pay of the employee. It is also an economic term that refers to the economic inefficiency resulting from taxes., yielding some of the highest marginal rates on wage income nationwide. Multnomah County’s business income tax is on net income of partnerships, S corporations, and C corporations, and is levied at a rate of 2 percent on net business income in the county. Where the same income is taxed at the entity level by the Business Income Tax and again when passed through to an owner and investor and taxed under the Multnomah Preschool for All Tax or Portland Supportive Housing Services Tax.

Quarterly Estimated Payments

• Multnomah County employers are required to withhold on behalf of employees for the Preschool For All Personal Income Tax.
• Locate in Vancouver with identical performance, and after-tax earnings increase to 7.8% of sales—or by $168,892.
• The City of Portland is imposing late payment and underpay for taxpayers who do not have enough tax withheld and do not make estimated tax payments for the tax year.
• Multnomah County taxpayers outside the Portland city limits are not subject to the Business License Tax, and Metro region taxpayers outside Multnomah County are additionally not subject to the Preschool for All Tax or the Business Income Tax.
• If your state tax witholdings are greater then the amount of income tax you owe the state of Oregon, you will receive an income tax refund check from the government to make up the difference.

The total tax rate on any particular property is calculated by adding all the local taxing district rates in the area, then multiplied by the assessed value of the property. The county assessor verifies the tax rates and levies submitted by each local taxing district on an annual basis. The county tax collector collects the taxes and distributes the funds to the local districts.

The absence of a state oregon state income tax capital gains tax in Washington likely contributes to the strong growth of that income in the county. For tax years beginning on or after January 1, 2018, all owners of residential rental property within the City of Portland are required to register their residential rental unit and may owe the Residential Rental Registration (RRR) fee. Visit our Residential Rental Registration page for more information about the filing and payment requirements. For previous years’ tax rates, refer to the tax charts on the last page of Publication OR-17. Another way you can alter your paycheck is to change your contributions to employer-sponsored retirement or medical expense accounts. As mentioned above, these are pre-tax contributions, so not only do they help you save for the future, they also save you money on your taxes now.

• The Division does not waive properly assessed interest, and all outstanding tax and interest must be paid in order to waive penalties.
• Portland has the highest business taxes—on small and large businesses, and pass-throughs and corporations alike—and the second highest top marginal rate on wage income in the country.
• Visit our Heavy Vehicle Use Tax page for more information about the filing and payment requirements.
• While most in-depth tax software charges a fee, there are several free options available through the states, and simple versions are also offered free of charge by most tax software companies.
• Oregon employs a graduated income tax system with rates ranging from 4.75% to 9.9%, which can significantly impact your net income based on your earnings level.
• The Personal Exemption, which is supported by the Oregon income tax, is an additional deduction you can take if you (and not someone else) are primarily responsible for your own living expenses.

Employers must submit SHS and PFA personal income tax withholding payments to the Revenue Division. Payment due dates are the same as the dates for depositing federal and State of Oregon withholding tax liabilities. For more details, please see Oregon Metro’s SHS website and Multnomah County’s PFA website. Statewide, the average effective property tax rate (annual property taxes as a percentage of home value) is 0.86%. Because of the inherently local nature of property tax collections in Oregon, rates vary significantly between counties. There are 1,200 local taxing districts in Oregon, with property fixed assets tax rates varying between each one.

City Cast Portland

Effective January 1, 2021, two new Oregon local income taxes apply, the Portland Metro Supportive Housing Services Income Tax and the Multnomah County Preschool for All Accounting For Architects Income Tax. Beginning April 2021, employers are able to remit withholding tax payments and file returns for these new local taxes through the Portland Revenue Division. If you are not able to have taxes withheld through your employer, you are required to make estimated tax payments if you expect to owe more than $1,000 of tax when you file your Metro SHS or Multnomah County PFA tax return.