Oregon

Sales Tax

  • Statewide: None
  • Gasoline Tax: 58.40 cents/gallon (Includes all state, local, and federal taxes)
  • Diesel Fuel Tax: 64.40 cents/gallon (Includes all state, local, and federal taxes)
  • Municipalities can enact their own sales tax.

 

Personal Income Tax

  • Personal Income Tax Rate Range: Four brackets from 4.75% to 9.9% (on income greater than $125,000)
  • Standard deduction: Single Filing Status: $2,745. 
  • Personal Exemption Allowance: $249. Dependent Exemption: $236 (if federal Adjusted Gross Income is less than $100,000). Taken as tax credit
  • Itemized Deductions Allowed?: Yes, subject to limitations
  • Retirement Income
    • Social Security: Exempt
    • IRAs: Taxable at ordinary income tax rates*
    • 401Ks/Defined contribution employer retirement plans: Taxable at ordinary income tax rates*
    • Private pensions: Taxable at ordinary income tax rates*
    • Public Pensions: Taxable at ordinary income tax rates.*  
  • Military Pay
    • Active Duty Pay: Taxable pay may be exempt up to $6,000
    • Military Retirement Pay: Taxable at ordinary income tax rates.*
      • If all of your months of federal service occurred or points were earned before Oct. 1, 1991, subtract 100% of the taxable federal pension income you reported on your federal return.
      • If you have no months of service or points earned before Oct. 1, 1991, you cannot subtract any federal pension.
      • If your service occurred or points were earned both before and after Oct. 1, 1991, you will subtract a percentage of the taxable federal pension income you reported on your federal return. To determine your percentage, divide your months of service or points earned before Oct. 1, 1991, by your total months of service or points earned. Round your percentage to three places (example: 0.4576 = 45.8%).  Once you determine the percentage, it will remain the same from year to year. Source: 2016 Oregon Publication OR-17
    • Military Disability Pay: Exempt
    • VA Dependency & Indemnity Compensation Benefits: Exempt
    • SBP/SSBP/RCSBP/RSFPP: Taxable at ordinary income tax rates* (subject to same rules as retirement pay)
Income Tax Comments: *Retirement income credit of lesser of tax liability or 9% of taxable retirement income if household income less than $22,500. State allows county- and city-level income tax. Federal income tax deductible but limited to $7,050 for all filers. 

 

Property Tax

  • Local municipalities average 0.86% of the property's assessed value.
  • Calculation of assessed value: 100% of fair market value assessed annually
  • Relief programs for:
    • Owner-Occupied: Maximum assessed value cannot increase more than 3% annually.
    • Disabled or Over 62: May be eligible to defer tax payments if income less than $51,000
    • Disabled Veterans/Surviving Spouses: May qualify to exempt $25,537 or $30,646 of assessed value if have disabilities of 40% or more.
  • Personal Property Tax: Yes. Rates and exemptions vary.

 

Inheritance & Estate Taxes: Estates over $1.0 million are taxed between 10% and 16%; some family members are exempt. There is no inheritance tax.

 

Department of Revenue website: www.oregon.gov/dor

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