Oregon Paycheck Calculator: Calculate Your OR Take-Home Pay

Our Oregon paycheck calculator uses current 2025 federal and Oregon state tax brackets, FICA rates, and standard deduction amounts. Results are highly accurate for typical W-2 employees, though unique situations (additional local taxes, special withholding orders, or year-to-date considerations) may cause slight variations. For the most precise calculation, verify with your employer's payroll system.

Oregon is unique because it has no state or local sales tax but maintains one of the highest state income tax rates in the nation (up to 9.9% for high earners). This means workers see significant state withholding from their paychecks, but pay no sales tax on purchases. Oregon also offers relatively generous standard deductions compared to federal amounts.

Oregon allowances work similarly to federal allowances but with state-specific values. Each allowance claimed on Form OR-W-4 reduces your taxable income by $244 annually. Claiming more allowances reduces withholding (increasing take-home pay) but may result in owing taxes when you file. Claiming fewer allowances increases withholding, potentially resulting in a refund.

Oregon relies heavily on income tax rather than sales tax to fund state services. The top rate of 9.9% applies to income over $125,000 (single) or $250,000 (married joint). If you're in a higher tax bracket, you'll see significant state withholding. However, remember that Oregon has no sales tax, which can save you money on everyday purchases compared to neighboring states.

Yes, the Portland Metro area has additional transit taxes. The TriMet payroll tax of 0.7437% applies to employers, which may affect salary offers. While this doesn't appear as a direct deduction on most paychecks, it impacts total compensation costs for Portland-area employers. Some employers may pass this cost through in the form of slightly lower wages.

While Oregon workers pay higher income taxes, the absence of sales tax (typically 6-10% in other states) provides significant savings on purchases. For example, a $1,000 computer costs exactly $1,000 in Oregon, but would cost $1,060-$1,100 in states with sales tax. This benefit is particularly valuable for large purchases like vehicles, appliances, and furniture.

The Oregon 'kicker' is a unique tax credit that refunds surplus state revenue to taxpayers. When state revenue exceeds projections by at least 2%, the excess is returned to taxpayers as a credit on their following year's tax return. The amount varies by year and your tax liability. There's no separate application—you'll receive it automatically if you filed an Oregon tax return.

If you're an Oregon resident working remotely for an out-of-state employer, your employer must withhold Oregon taxes. You should complete Oregon Form OR-W-4 to ensure proper withholding. If you work in Oregon but live in a neighboring state (like Washington), you'll still owe Oregon income tax on wages earned in Oregon, but may be eligible for tax credits in your home state.