How the Oregon Paycheck Calculator Works

This calculator breaks down your Oregon paycheck by accounting for federal income tax, Oregon state income tax (progressive rates from 4.75% to 9.9%), Portland metro transit taxes if applicable, and FICA taxes. Oregon has no sales tax but compensates with higher income tax rates than many states.

The calculation follows this formula:

Here’s what happens. Your gross pay gets reduced first by pre-tax deductions (401(k), health insurance, HSA). Federal income tax applies using 2025 IRS brackets. Oregon state tax applies using progressive brackets from 4.75% to 9.9% based on your OR-W-4 filing status and allowances. If you work in the Portland metro area, TriMet tax (1%) and Metro Supportive Housing Services tax (1%) apply to wages over certain thresholds. Social Security takes 6.2% up to $176,100. Medicare takes 1.45% plus 0.9% additional on high earners. What’s left is your net pay.

Understanding Oregon State Taxes

Progressive Tax Brackets

Oregon uses progressive tax brackets. Single filers pay 4.75% on the first $4,300, then 6.75% on income from $4,301 to $10,750, scaling up to 9.9% on income over $125,000. These brackets adjust for married filers and heads of household. Most middle-income earners fall into the 8.75% or 9.9% brackets.

Unlike flat-tax states like Illinois, higher earners in Oregon pay higher percentages. A $50,000 earner pays roughly 7.5% effective state tax. A $150,000 earner pays closer to 9%. The top 9.9% bracket kicks in earlier than many states (at $125,000 for single filers), making Oregon relatively high-tax for upper-middle-income earners.

Portland Metro Transit Taxes

If you work in the Portland metro area (Multnomah, Washington, and Clackamas counties), you pay two additional taxes. TriMet Self-Employment Tax is 1% of wages over $200,000 annually (rarely applies to W-2 employees, but sometimes withheld). Metro Supportive Housing Services Tax is 1% of wages for individuals earning over $125,000 (single) or $200,000 (married filing jointly).

These taxes fund public transportation and homeless services. If you make $150,000 and work in Portland, you pay an extra 1% Metro tax (roughly $1,500 annually). TriMet tax typically doesn’t affect most employees unless you’re very high income or self-employed.

OR Allowances Explained

Oregon uses the OR-W-4 form for state withholding. Each allowance reduces your annual taxable income. Most people claim 1 allowance for themselves, plus additional allowances for dependents or if you qualify for certain credits. More allowances means less tax withheld per paycheck but potentially a smaller refund or larger bill at tax time.

Real Oregon Paycheck Examples

Annual Salary	Location	Gross Biweekly	Total Tax	Net Biweekly
$50,000	Eugene	$1,923.08	$555.00	$1,368.08
$50,000	Portland Metro	$1,923.08	$555.00	$1,368.08
$75,000	Portland Metro	$2,884.62	$875.00	$2,009.62
$100,000	Eugene	$3,846.15	$1,225.00	$2,621.15
$150,000	Portland Metro	$5,769.23	$2,135.00	$3,634.23

Note: Examples assume single filing status, 1 allowance, no pre-tax deductions. Metro transit taxes apply above thresholds. Actual amounts vary.

Oregon vs. Other States Comparison

State	State Tax Rate	Sales Tax	$100k Net Pay
Oregon	~8.75%	0%	$71,000
Washington	0%	6.5-10.4%	$76,000
California	~9.3%	7.25-10.75%	$69,000
Texas	0%	6.25-8.25%	$76,000
Idaho	~5.8%	6%	$73,000

Oregon’s zero sales tax is a major benefit, but you pay for it through higher income tax. Whether this works in your favor depends on your spending habits. High earners who save a lot benefit from avoiding sales tax. Lower earners who spend most of their income might prefer states with sales tax but lower income tax.

Edge Cases and Common Questions

What If I Live in Oregon But Work in Washington?

Washington has no income tax, so your employer doesn’t withhold WA state tax. But Oregon taxes all income earned by residents, even if earned elsewhere. You pay Oregon income tax on your Washington wages when you file your Oregon return. Set aside money for OR tax since it’s not withheld from paychecks.

What If I Live in Washington But Work in Oregon?

Oregon withholds state tax from your paycheck. Washington has no income tax, so you don’t owe WA anything. Oregon allows non-residents to get a refund of taxes paid on the first $3,000 of income (Oregon Standard Deduction for non-residents), but you pay Oregon tax on income above that. Many Vancouver, WA residents work in Portland and pay Oregon tax.

What If I Move to Oregon Mid-Year?

You pay Oregon taxes only on income earned while living in Oregon. If you move from Texas to Oregon in July, your first six months have no OR tax. Your last six months get Oregon state tax. File a part-year resident return. Update your W-4 and OR-W-4 once you establish Oregon residency.

What About Portland Metro Transit Taxes?

TriMet tax (1%) applies to self-employment income over $200,000. Most W-2 employees don’t pay this. Metro Supportive Housing Services tax (1%) applies to wages over $125,000 (single) or $200,000 (married filing jointly) if you work in Multnomah, Washington, or Clackamas counties. This is withheld from paychecks for eligible workers.

What If Oregon Raises Tax Rates?

Oregon periodically discusses tax increases, especially on high earners. If the top rate goes from 9.9% to 10.9%, your net pay drops by roughly 1% of taxable income above the top bracket threshold. Watch for ballot measures and legislative proposals. Oregon voters have some say through the ballot initiative process.

What If I’m Self-Employed in Oregon?

Self-employed individuals pay both halves of FICA (15.3%) plus Oregon state tax (up to 9.9%) plus TriMet tax if applicable (1% on income over $200,000). You make quarterly estimated tax payments. Total tax burden can hit 35-40% for high-earning self-employed individuals in the Portland metro area.

What If I Retire in Oregon?

Oregon taxes most retirement income. Social Security is partially exempt (depends on income), but 401(k) withdrawals, IRA distributions, and pensions are taxed at regular income rates. This makes Oregon less retirement-friendly than states that exempt retirement income (like Pennsylvania or Mississippi).

Understanding Gross vs. Net in Oregon

The 30-35% Rule

Expect to lose roughly 30-35% of gross pay to all taxes in Oregon (federal, state, FICA). Portland metro workers earning over $125,000 can hit 36-38% due to additional Metro tax. A $80,000 salary nets around $55,000-57,000 after all taxes. Always budget with net pay, not gross.

Pre-Tax Benefits Save More in Oregon

Oregon’s high state tax rates make pre-tax deductions extra valuable. If you’re in the 22% federal bracket and 8.75% Oregon bracket, every $1,000 contributed to a 401(k) saves you $220 federal + $87.50 state + $76.50 FICA = $384 in taxes. That’s a 38.4% immediate return. Max out 401(k), HSA, and FSA to keep more money.

Should You Work in Oregon?

When It Makes Sense

Oregon offers no sales tax, beautiful nature, and good quality of life. If you value outdoor recreation and progressive policies, the 8-10% state tax might be worth it. Tech jobs in Portland and Hillsboro pay competitively. The no-sales-tax benefit matters most if you make large purchases (cars, furniture, electronics).

Oregon also works well if you’re a high earner who saves aggressively. Avoiding 8-10% sales tax on a frugal lifestyle while earning high income can net more take-home than low-tax states with sales tax.

When It Doesn’t Make Sense

Don’t move to Oregon for a marginal salary increase without accounting for taxes and cost of living. A $95,000 offer in Portland nets roughly the same as $88,000 in a zero-income-tax state. Factor in Portland’s high housing costs. A $100,000 salary feels very different in Portland versus Dallas or Phoenix.

Frequently Asked Questions

Does Oregon Have Sales Tax?

No. Oregon is one of five states with no sales tax (along with Alaska, Delaware, Montana, and New Hampshire). This saves money on purchases but Oregon compensates with higher income tax rates than most states.

What’s the Difference Between Federal W-4 and OR-W-4?

W-4 controls federal withholding. OR-W-4 controls Oregon state withholding. They’re separate forms with separate allowances. You can claim different allowances on each. Most people claim the same number for simplicity, but you’re not required to match them.

Do I Pay Portland Metro Taxes If I Live Outside the Metro?

You pay based on where you work, not where you live. If you live in Salem but work in Portland, you pay Metro Supportive Housing Services tax (if you earn over the threshold). If you live in Portland but work in Eugene, you don’t pay metro taxes.

How Accurate Is This Calculator?

Very accurate for standard W-2 employees using 2025 tax tables. Where it might differ: specific metro tax thresholds, unusual deductions, union dues, or employer-specific withholding. Small differences (under $50 per paycheck) are normal. For precise numbers, check your actual paystub.

Can I Reduce Oregon State Tax Withholding?

Yes, by claiming more allowances on your OR-W-4 form. Each additional allowance reduces withholding. But be careful not to under-withhold so much that you owe a large tax bill and penalties in April. Most people claim 1-2 allowances total.

Does Oregon Tax Social Security?

Partially. Oregon offers a credit that exempts most Social Security income for middle and lower-income retirees. High-income retirees might pay some Oregon tax on Social Security. This is more favorable than states that tax all Social Security, but less favorable than states that exempt it entirely.

Maximizing Your Oregon Take-Home Pay

Max All Pre-Tax Accounts

Contribute to 401(k) ($23,500 in 2025), HSA ($4,300 single, $8,550 family), and FSA ($3,300). In Oregon’s 8.75% bracket, these save 30-35% in combined taxes. On a $90,000 salary, maxing a 401(k) saves roughly $8,000 in total taxes (federal + state + FICA).

Take Advantage of No Sales Tax

Oregon’s zero sales tax means big purchases (cars, appliances, furniture, electronics) save you 6-10% compared to neighboring states. A $40,000 car purchase saves $2,400-4,000 in sales tax. Use this advantage for major purchases and budget accordingly.

Consider Living in Washington, Working in Oregon

If you live in Vancouver, WA and work in Portland, you pay Oregon income tax but avoid Washington’s high sales tax and property taxes. This can work financially depending on your income level and spending habits. Crunch the numbers on commute costs versus tax savings.

Related Tools

Need to calculate other aspects of your Oregon income? Check out these related calculators:

• Oregon Salary Calculator (annual salary breakdown)
• Hourly to Salary Calculator (convert hourly wage to annual income)
• Cost of Living Calculator (compare Portland, Eugene, Salem, Bend)
• Bonus Tax Calculator (see how bonuses get taxed)
• Sales Tax Savings Calculator (OR vs. other states)