State Income Tax Rates and Brackets, 2022

oregon individual income tax rate

(bb) The standard deduction is 15 percent of income with a minimum of $1,550 and a cap of $2,350 for single filers and married filing separately filers. The standard deduction is a minimum of $3,100 and capped at $4,700 for MFJ filers, head of household filers, and qualifying widows/ widowers. The minimum and maximum standard deduction amounts are adjusted annually for inflation. 2022 inflation-adjusted amounts were not announced as of publication, so 2021 inflation-adjusted amounts are shown. These state income tax rates apply to income earned in 2023, which is reported on tax returns filed in 2024. State income tax rates receive relatively little attention compared with federal income taxes, but they can still put a large dent in your wallet.

More on Oregon taxes can be found in the tabbed pages below. Oregon’s high income taxes are partially due to the fact that Oregon has no state sales tax. Tax brackets for earnings under under $125,000 are indexed for inflation and adjusted yearly, while tax brackets over $125,000 are only changed explicitly by statute. To help offset high state income taxes, Oregon taxpayers can deduct up to $6,100 of Federal income tax from their Oregon taxable income.

Personal income tax rate charts and tables

Any taxable income exceeding $25 million is subject to the top marginal rate of 10.9 percent. Last year was a historic year for income tax rate reductions, with more states reducing their individual income tax rates in a single year than the U.S. has seen since the years following the federal tax reform of 1986. In 2021 alone, 13 states enacted or implemented individual income tax rate reductions. Some of these rate reductions were effective starting January 1, 2022; some were retroactive to January 1, 2021; and others are scheduled to take effect in the future. Some of the scheduled future rate reductions rely on tax triggers, where rate reductions will occur once certain revenue benchmarks are met.

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  • You are considered an Oregon resident if you lived in Oregon for most of the last tax year, specifically 200 days or more.
  • Your Oregon state income tax may increase due to various factors.
  • 399 will take effect in subsequent years.[16] These include consolidating the state’s seven individual income tax brackets into two, with rates of 4.7 and 6.5 percent by 2024.

Both companies produce multiple editions for simple to very complex tax returns, so be sure to carefully compare the features offered by each package. Taxable property includes real property, mobile homes and some tangible personal property used by business. The state and each county assessor determine the value of property in each county. Measure 5, which was passed by the voters in November 1990, restricted non-school taxes on any property to $10 per $1,000 of real market value. It restricted school taxes on any property to $5 per $1,000 of real market value. Register for a NerdWallet account to gain access to a tax product powered by Column Tax for a flat rate of $50 in 2024, credit score tracking, personalized recommendations, timely alerts, and more.

2 – Oregon Personal Exemptions

380, reducing the state’s top marginal individual income tax rate from 6.925 to 6.5 percent while consolidating seven individual income tax brackets into five. 380, Idaho’s top marginal individual income tax rate and third-lowest rate were both eliminated. The remaining rates were each reduced by 0.125 percentage points, except for the second-lowest oregon income tax rate, which was reduced by 0.025 percentage points. The personal income tax is the largest source of state tax revenue and is projected to make up 86% of the total General Fund revenues in the 2021–2023 biennium. In January 2010, Oregon voters approved Ballot Measure 66, which made two permanent changes to personal income tax calculations.

oregon individual income tax rate

50, which increased the standard deduction for single filers from $3,000 to $3,500. Joint filers’ standard deduction will increase from $7,500 to $8,000. (l) Exemption credits phase out for single taxpayers by $6 for each $2,500 of federal AGI above $212,288 and for MFJ filers by $12 for each $2,500 of federal AGI above $424,581. Forty-one tax wage and salary income, while New Hampshire exclusively taxes dividend and interest income and Washington taxes the capital gains income of high earners. As you can see, income taxes are the primary tax most individuals face and are often their biggest annual cost.

The State Business Tax Climate Index Is Your Guide to Economic “Wins Above Replacement”

Voters can also approve bond levies, which are used exclusively to repay a bond used to fund capital projects. Local option levies require a “double majority”​ for approval. Measure 50 established the 1997–1998 maximum assessed value as 90% of a property’s 1995–1996 real market value.

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  • The Oregon Department of Revenue appraises certain large industrial sites for the counties.
  • 1828, tax triggers were established that set the state on a course to a 2.5 percent flat rate subject to reaching specified revenue targets.
  • Note that these are marginal rates, so they only apply to the portion of the estate falling within that bracket.
  • While Oregon does not have a general sales tax, it does tax the sale of alcohol.
  • In 2023, the Oregon state income tax rates range from 4.75 to 9.90%.

In the mid-1970s, corporations contributed almost 19 percent of all income taxes collected by the state of Oregon. In the last budget period, corporations paid about 7 percent. This relative decline of the corporate income tax has occurred despite an environment of strong corporate profits. Head over to the Federal income tax brackets page to learn about the Federal Income Tax, which applies in all states nationwide. Oregon has a progressive income tax that ranks among the highest in the nation. The average effective property tax rate is about average, though, ranking as the 26th-highest rate in the country.

Married Filing Jointly – Qualifying Widow(er)

(mm) The standard deduction begins to phase out at $18,400 in income for single filers and $26,550 in income for joint filers. The standard deduction phases out to zero at $124,733 for single filers and $145,976 for joint filers. However, Oregon’s tax system differs from others because different portions of one’s income are taxed at various rates of the specific tax brackets they fall into. This method ensures that individuals pay varying rates on different income parts.

However, implementation of that law has been suspended pending the outcome of Prop. Think of ordinary income as the typical money you earn day in and day out. Unlike other types of income such as long-term capital gains or qualified dividends, which can get preferential tax treatment, your ordinary income gets no special tax perks and typically has a higher tax rate. If you earn an income in Oregon, you know you’ll lose something to federal and Oregon State taxes.

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