Oregon Tax Calculator 2022-2023: Estimate Your Taxes

W-2s are submitted separately from the Annual Withholding Reconciliation returns and must be submitted electronically through Portland Revenue Online (PRO) in EFW2 format. Employees may use the Multnomah County Opt In/Out form to elect in or out of withholding or to designate a different withholding amount, based on their tax situation. The latest IRS and Census data show that people and businesses favor states with low and structurally sound tax systems, which can impact the state’s economic growth and governmental coffers. Paper returns for open accounts with a balance due greater than $100 are kept indefinitely. If an open account balance is less than $100, the paper return is destroyed after four years, but information reported on the return is retained indefinitely.

• That’s money that your employer removes from your pay before taxes are applied.
• If payment for taxes due nor a protest to increased taxes is timely received, the Revenue Division may assess additional interest and penalties, including civil penalties of $500 per violation of the City and County tax codes.
• Oregon has a progressive income tax that ranks among the highest in the nation.
• If you’ve donated to charity this year, those contributions are tax deductible if the donation was made to a qualified organization — but you’ll have to itemize.
• Select the Oregon city from the list of popular cities below to see its current sales tax rate.

Oregon’s tax system ranks 24th overall on our 2023 State Business Tax Climate Index. 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. If a taxfiler cannot complete their business tax return by the original due date, they may request a six-month extension to file their business tax return. This extension should be accompanied by a payment of the estimated tax due, if applicable.

Real estate taxes

If you live in certain states, you could lose another chunk of your hard-earned cash to your city, county, or school district. Roughly one-third of states allow municipalities, counties, school districts, and special districts to impose additional local income taxes. In a previous report released in October, a consultant for Oregon Business & Industry, compared top income tax rates for cities and states. According to their data, Portland’s income tax rate of 14.7% for high earners is second only to New York City. The tax rate is 1.5% of Oregon taxable income over $125,000 for single filers and $200,000 for joint filers.

Taxpayers may submit a waiver request along with their 2020 combined tax return. Refunds for the City of Portland, Multnomah County, and Metro business taxes are generally issued within 8-10 weeks after the complete tax return is filed (with supporting tax oregon income tax pages). Due to high volumes of mail, tax returns filed in March/April and September/October may require additional time for a refund to be issued. Multnomah County changed from requiring a business license to assessing a business income tax in 1976.

Residency Status: Full-Year and Part-Year/Non-Resident Filers

You can save time and money by electronically filing your Oregon income tax directly with the . Benefits of e-Filing your Oregon tax return include instant submission, error checking, and faster refund response times. Most tax preparers can electronically file your return for you, or you can do it https://www.bookstime.com/ yourself using free or paid income tax software, like the examples listed below. There are 1,200 local taxing districts in Oregon, with property tax rates varying between each one. Tax collections are managed primarily by the 36 counties in Oregon, which assess property and calculate taxes owed.

You will gradually make your way up to the highest rate that’s for the portion of income that exceeds the previous bracket. Beyond federal income taxes, your employer will also withhold Social Security and Medicare taxes from each of your paychecks. Social Security tax is withheld at 6.2% and Medicare tax at 1.45% of your wages. Your employer then matches those amounts, so the total contribution is double what you paid. If you earn wages in excess of $200,000, they are subject to a 0.9% Medicare surtax (though employers do not match this surtax). Exactly how much your employer deducts from your wages for federal income taxes depends on factors like your marital status, salary and whether you have any dependents.