How this calculator works
Like the Texas calculator, this estimates federal tax and FICA the same way; Oregon doesn’t change those. On top of that, it computes Oregon’s own state income tax, using Oregon’s own standard deduction, a subtraction for federal tax paid (capped at a flat dollar amount), and a personal exemption credit applied after the bracket math, plus Paid Leave Oregon, a 0.6% payroll tax that funds the state’s paid family and medical leave program.
The formula
(federal tax, FICA, and net-pay assembly are identical to the Texas calculator)
federalSubtraction = min(federal tax liability, $8,750)
(same $8,750 cap for single AND joint filers, not doubled)
orTaxableIncome = max(0, wagesAfterPretax − federalSubtraction − orStandardDeduction)
(orStandardDeduction: $2,910 single / $5,820 joint)
orBracketTax = 2026 OR bracket schedule applied to orTaxableIncome
(4.75% / 6.75% / 8.75% / 9.9%)
exemptionCredit = $260 x exemptions (1 single, 2 joint)
or $0 if income is above $100,000 single / $200,000 joint
orIncomeTax = max(0, orBracketTax − exemptionCredit)
paidLeaveOregon = 0.6% x ficaWages, capped at $184,500
stateTax = orIncomeTax + paidLeaveOregon
Worked example
A single filer earning $60,000/year, paid biweekly, with no 401(k) or extra deductions:
- FICA: $4,590.00/year (same as any state)
- Federal tax: $5,020.00/year (same as any state)
- Federal tax subtraction: $5,020.00 is below the $8,750 cap, so the full $5,020.00 applies
- Oregon taxable income: $60,000 − $5,020 − $2,910 standard deduction = $52,070
- Oregon bracket tax: $4,237.14/year
- Personal exemption credit: −$260.00 (1 exemption, income well below the $100,000 phase-out)
- Oregon income tax: $4,237.14 − $260.00 = $3,977.14/year
- Paid Leave Oregon: 0.6% × $60,000 = $360.00/year
- Net pay: $60,000 − $4,590 − $5,020 − $3,977.14 − $360 = $46,052.86/year, or $1,771.26 per biweekly paycheck
Every figure above was hand-computed from the Oregon Department of Revenue’s own 2026 Withholding Tax Formulas and Publication OR-ESTIMATE 2026, both accessed 2026-08-25.
Frequently asked questions (FAQ)
Why is Oregon's top income tax rate so high compared to other states?
Oregon has no state sales tax, so it leans more heavily on income tax to fund state and local services. Its top rate of 9.9% (on taxable income above $125,000 single or $250,000 joint) is among the highest in the country, but Oregon also lets filers subtract part of their federal tax bill, which softens the effective rate for most earners.
What is Paid Leave Oregon, and how much comes out of my paycheck?
Paid Leave Oregon funds paid family and medical leave benefits for Oregon workers. The total contribution is 1% of wages, split 60/40 between employee and employer. Your share is 0.6% of wages, capped at $184,500 of wages in 2026, the same cap used for Social Security.
Can I really deduct my federal income tax on my Oregon return?
Yes. Oregon lets you subtract the federal income tax you owe from your Oregon taxable income, up to $8,750 a year in 2026. Unusually, that cap is the same flat dollar amount whether you file single or jointly. It is not doubled for joint filers the way most other Oregon thresholds are.
What is the Oregon personal exemption credit?
It is a $260-per-exemption credit (2026) subtracted directly from your calculated Oregon tax, after the bracket math, rather than from your taxable income. This calculator assumes one exemption for single filers and two for joint filers. The credit disappears entirely once your income passes $100,000 single or $200,000 joint.
Does Portland have its own local income tax on top of Oregon's state tax?
Yes, for higher earners in the Portland area. The Metro Supportive Housing Services tax (1%) and the Multnomah County Preschool for All tax (1.5% to 3%) both apply above $125,000 (single) or $200,000 (joint) of income, but only within their specific service areas. This calculator doesn't include either, so actual take-home pay for affected residents will be lower than shown here.
Are tips and overtime tax-free in Oregon?
No. The federal 2025-2028 "no tax on tips" and "no tax on overtime" deductions only reduce your federal taxable income. Oregon has not adopted matching state deductions, so tips and overtime remain fully taxable on your Oregon return.