Oregon State Taxes
Quick Tax Facts
Income Tax: 4.75% – 9.90%
State Sales Tax: 0%
Median Property Tax: $3,118
Overview
Oregon is known for its breathtaking natural beauty. From volcanic peaks to blissful beaches, there’s something for every nature-lover. Another attractive thing about the state – no sales tax! Unfortunately, the housing market has skyrocketed which can make moving there a bit expensive. Worst of all, Oregon comes in at #1 for most taxes on those making over $75,000.
Oregon Income Tax
Oregon’s progressive tax rate ranges from 4.75% to 9.90%. The amount you pay is based on your taxable income and filing status.
| Oregon Tax Rates – Single or Married Filing Separately |
|---|
| Taxable Income | Tax Rate |
|---|---|
| $0 – $4,400 | 4.75% |
| $4,400 – $11,100 | 6.75% |
| $11,100 – $125,000 | 8.75% |
| Over $125,000 | 9.9% |
| Oregon Tax Rates – Married Filing Jointly, Head of Household or Surviving Spouse |
|---|
| Taxable Income | Tax Rate |
|---|---|
| $0 – $8,800 | 4.75% |
| $8,800 – $22,200 | 6.75% |
| $22,200 – $250,000 | 8.75% |
| Over $250,000 | 9.9% |
Who Must File?
Full-year residents must file an Oregon income tax return (Form OR-40) if their income exceeds the amount shown in the chart below for their filing status.
| Oregon Full-Year Resident Filing Requirements |
|---|
| Filing Status | Number of boxes checked on line 17 of OR-40 | Gross Income |
|---|---|---|
| Single | 0 | $7,935 |
| Single | 1 | $9,135 |
| Single | 2 | $10,335 |
| Married Filing Jointly | 0 | $15,865 |
| Married Filing Jointly | 1 | $16,865 |
| Married Filing Jointly | 2 | $17,865 |
| Married Filing Jointly | 3 | $18,865 |
| Married Filing Jointly | 4 | $19,865 |
| Married Filing Separately | 0 | $7,935 |
| Married Filing Separately | 1 | $8,935 |
| Married Filing Separately | 2 | $9,935 |
| Head of Household | 0 | $9,950 |
| Head of Household | 1 | $11,150 |
| Head of Household | 2 | $12,350 |
| Qualifying Surviving Spouse | 0 | $11,060 |
| Qualifying Surviving Spouse | 1 | $12,060 |
| Qualifying Surviving Spouse | 2 | $13,060 |
Those who can be claimed as a dependent on another taxpayer’s return must also file if they have gross income over $1,150.
Part-Year and Nonresidents
Part-year and nonresidents must file if their income exceeds the thresholds below:
| Oregon Filing Requirements (Part-Year & Nonresidents) |
|---|
| Filing Status | Gross Income |
|---|---|
| Single | $2,835 |
| Married Filing Jointly | $5,670 |
| Married Filing Separately (if spouse claims standard deduction) | $2,835 |
| Married Filing Separately (if spouse itemizes) | $0 |
| Head of Household | $4,560 |
| Qualifying Surviving Spouse | $5,670 |
Part-year residents should use Form OR-40-P. Nonresidents should file using Form OR-40-N.
Oregon Sales Tax
Oregon doesn’t have a general sales tax, but it does have a vehicle use tax that applies to new vehicles purchased in the state. Oregon residents who purchase a new vehicle outside of the state are assessed a privilege tax. This tax must be paid before the vehicle can be titled and registered in Oregon.
Oregon Property Taxes
Oregon property taxes are average when compared to other states. Homeowners generally pay .87% of a property’s assessed fair market value.
Currently, the median property tax bill in Oregon is approximately $3,118. Clackamas County has the highest property tax at an average of $4,866. The lowest amount is $1,371 in Lake County.
| Highest | $4866 |
|---|---|
| Median | $3118 |
| Lowest | $1371 |
Yearly Cost Per Resident
Oregon Tax Holidays
There are no sales tax holidays scheduled in Oregon at this time.
Oregon Tax Relief
Falling behind on your Oregon income taxes can make an already difficult financial situation more challenging. Penalties and interest may continue to increase your balance, and the Oregon Department of Revenue (DOR) may take collection action when taxes remain unpaid. Whether your tax debt is related to unfiled returns, financial hardship, or outstanding business tax obligations, addressing the issue promptly may help keep the problem from escalating.
If you can’t afford to pay your Oregon tax balance in full, there may be other ways to resolve what you owe. Depending on your circumstances and eligibility, you may be able to arrange a payment plan, request uncollectible status, or explore other available tax relief options. Working with the state to address your balance may also help you avoid or resolve collection measures such as tax liens, wage garnishments, and bank levies.
Knowing how Oregon’s tax collection process works and understanding the resolution options available can help you make informed decisions about your situation. By taking steps to address your outstanding balance, you can work toward resolving your Oregon tax debt and bringing your account back into good standing.
Common Oregon State Tax Problems
Back Taxes
If you owe unpaid Oregon taxes, addressing your balance early may help you avoid additional penalties and collection actions.
Unfiled Tax Returns
Filing past-due Oregon tax returns is often the first step toward resolving your state tax issues.
Tax Notices
Notices from the OR Department of Revenue shouldn’t be ignored, as they often require prompt action to prevent further collections.
Liens & Levies
Unresolved tax debt may lead to liens against your property or levies on your assets as the state works to collect what is owed.
Garnishment
Oregon may garnish your wages to collect unpaid taxes, reducing the amount of each paycheck you receive.
Tax Penalties
Unpaid taxes can continue to accrue penalties and interest until your balance is resolved.
How Oregon Collects Tax Debt
If you have unpaid Oregon income taxes, the state will send a Notice of Assessment. It explains the amount due, as well as penalties and interest fees. Failure to pay or respond will result in a Notice and Demand for Payment being sent. Should you still not pay your taxes, the state will move to issue a Distraint Warrant, which establishes the state’s right to collect the debt from you.
Continued non-compliance will result in your account being sent to collections, which may include:
- Wage garnishment
- Tax liens
- Bank levies
- Asset seizure
- Tax refund offset
Notice of Assessment sent to taxpayer
Distraint Warrant issued
Account sent to collections
Oregon State Tax Relief Options
The Oregon Department of Revenue offers several tax relief options, including:
- Payment Plans – If you can’t pay in full, you can request a payment plan (typically up to 36 months) online or by phone.
- Temporary Uncollectible Status – For those experiencing temporary financial hardship, you may qualify for temporary uncollectible status, which protects you from certain collection actions.
- Suspended Collections Status – Taxpayers with household income below 200% of the federal poverty level and less than $5,000 in assets may qualify for Suspended Collections Status.
- Tax Settlement – Those meeting the specified requirements may be able to settle their tax debt for less through a Tax Settlement.
If you’re experiencing financial hardship and can’t pay your Oregon income tax bill, contact the Department of Revenue as soon as possible to discuss your options.
When to Seek Tax Relief Help
If you’re experiencing any of the following, it may be time to explore your tax relief options:
You’re Receiving Collection Notices
Ignoring Oregon tax notices can lead to more serious collection actions, so it’s often best to address the issue early.
You Can’t Afford to Pay Your Taxes
If paying your Oregon state tax bill in full isn’t realistic, there may be payment or resolution options available.
Collection Actions Have Started
If you’re facing wage garnishments, bank levies, or tax liens, professional guidance may help you understand your options.
The sooner you address your tax debt, the more options you may have available to resolve your balance and minimize additional collection actions.
Oregon Tax Relief FAQs
Oregon Tax Resources
If you need assistance preparing your Oregon state taxes, you can speak with a tax professional from Tax Defense Network by calling 855-476-6920.
You can also visit the Oregon Department of Revenue website for additional resources.
- Find a Form
- Apply for an Extension
- Make a Payment
- Taxpayer Assistance: 503-378-4988 or 800-356-4222
