Oregon Department of Revenue : Calculator : Individuals : State of Oregon

Alternative nicotine products, previously not subject to tax, will be taxed at 10 cents per container with up to 20 units, and 0.5 cents per unit for any container with over 20 units. Minnesota’s cigarette excise tax will increase beginning January 1, 2025, from 73.9 cents per pack to 78.6 cents per pack. Senate Bill 35 discontinues the state property tax levies for the Kansas educational building fund and the state institutions building fund and instead finances these expenses with revenue from the state general fund, effective July 1. If you’re an Oregon resident and you purchase a new vehicle from a seller outside of the state, you may be exempt from paying the other state’s sales tax. Complete normal balance an Oregon Business Registry Resale Certificate​ and give it to the out-of-state seller at the time of purchase.

What is the standard deduction in Oregon?

Oregon may also require nonprofits to file additional paperwork with the Oregon Department of Revenue to gain exemption from Oregon’s corporate taxes. Adding these amounts together, the individual would pay a total of $32,643.69 in Oregon state income taxes for 2025. The tax system both reflects the oregon income tax rate prevailing economic forces of its time and helps shape economic outcomes. In recent decades, income inequality has climbed to historic levels.

Return due in 2023

Only a small subset of taxpayers actually pays that rate, however, as it applies only to single taxpayers making at least $125,000 a year ($250,000 for joint filers). The table below shows the full tax brackets and rates for the state income tax in Oregon. 1, the sales tax rate on groceries will be reduced from 7 percent to 5 percent on July 1. That same law also increases the excise tax rate on gasoline by 3 cpg each year for the next three years, raising it from 18 to 21 cpg on July 1, followed by an increase to 24 cpg in July 2026 and 27 cpg in July 2027. This is part of a broader tax package focused on income tax rate reductions, but those reductions begin next year.

How You Can Affect Your Oregon Paycheck

Oregondoesn’t tax Social Security or Railroad Retirement Board benefits. Oregon doesn’t have a specific amended return form for corporations. Use the same form type originally filed for the tax year you’re amending and check the “amended” box. See the form instructions for Online Bookkeeping more information and requirements. File your amended return separately from your current year’s return.

• In recent years, Congress has been tossing out tax breaks for the rich and corporations like confetti at a parade.
• It also creates a new nonrefundable tax credit for employer-provided childcare expenditures.
• It’s also worth noting that the IRS made major revisions to the W-4 in recent years.
• For further tax guidance and to ensure you’re not paying more tax than you need to, it’s wise to speak to an expert.
• Taxpayers must also calculate their tax liability and pay any taxes owed by the due date.
• After deductions and credits, the average effective tax rate is about 6.0% of adjusted gross income.

Also notable are the changes to sports betting tax structures that will occur in several states, as well as the implementation of several states’ EPR programs that are each at varying phases. ​You can drop off your tax form and make non-cash payments in person at our main office in Salem or at one of our regional field offices in Bend, Eugene, Gresham, Medford, or Portland. Part-year residents figure Oregon estimated tax the same way as a nonresident for the part of the year that they’re a nonresident, and the same way as a full-year resident for the part of the year that they’re a resident. State Taxes at a Glance – Idaho Type of Tax 2024 Individual Rates 5.8% (flat tax) Corporate / Business Tax Rates 5.8% (flat tax) Gross Receipts … State Taxes at a Glance – California Type of Tax 2024 Individual Rates 1.00% to 13.30% Corporate / Business Tax Rates 8.84% (flat tax) Gross Rec…

Taxpayers can also file by mail using the appropriate form (OR-40, OR-40-P, or OR-40-N) for their residency status and sending it to the address specified in the instructions. House Bill 606, enacted in April 2025, will take effect in late June. This law will allow counties to create joint taxing districts for large economic development projects, with those districts authorized to levy an occupational tax and a property tax.

New Jersey Tax Changes Effective July 1, 2025

• Oregon has $10,214 in state and local debt per capita and has an 88 percent funded ratio of public pension plans.
• This new W-4 now includes a five-step process that allows you to indicate any additional income or jobs, as well as other pertinent personal information.
• Measure 5, which was passed in November 1990, restricted non-school taxes on any property to $10 per $1,000 of real market value.
• This tax is determined by the individual’s federal-adjusted gross income and has rates that vary from 4.75% to 9.9%.
• 5801, enacted in May 2025, will increase the gas tax from 49.4 to 55.4 cpg, and the tax on special fuel will increase by $0.03 per gallon.
• The credit is calculated according to a fairly complicated formula, but it is equal to no more than 9% of your pension income.

These taxes are levied in a few ways, including per-gallon excise taxes, excise taxes imposed on wholesalers, and general sales taxes that apply to the purchase of gasoline. Increases and inflationInflation is when the general price of goods and services increases across the economy, reducing the purchasing power of a currency and the value of certain assets. It is sometimes referred to as a “hidden tax,” as it leaves taxpayers less well-off due to higher costs and “bracket creep,” while increasing the government’s spending power.

Oregon: Federal EITC(Earned Income Tax Credits) Rates and Thresholds in 2024

• These taxes create a bias against saving, leading to a lower level of national income by encouraging present consumption over investment.
• This law, which takes effect October 1, 2025, allows unused credit amounts to be carried forward for up to five years.
• While these changes take effect July 1, the lower 5.19 percent rate is applicable as of January 1, 2025, so taxpayers will get retroactive benefits upon filing their 2025 returns.
• The gas tax will increase from 30.8 to 31.7 cpg, and the diesel tax will increase from 31.8 to 32.7 cpg.
• Oregon has a progressive income tax that ranks among the highest in the nation.
• Additionally, the law increases the cap on local income tax rates from 3.2 to 3.3 percent.
• When you prepare your return on eFile.com this is all calculated for you based on your income.

It also creates a new nonrefundable tax credit for employer-provided childcare expenditures. Additionally, the law will expand the definition of taxable “tobacco products” to include certain nicotine products, including nicotine pouches, lozenges, and gum (except for FDA-approved smoking cessation or replacement products). The corporate excise and income tax is the second largest source of state tax revenue.

While the state is one of only five in the US not to impose sales and use taxes, the state makes up for this by charging higher tax rates in other areas, such as higher-than-average property taxes and imposing estate taxes. The Minnesota Omnibus Tax Bill, HF 9, signed into law in June 2025, will increase the excise tax rate on cannabis from 10 to 15 percent, effective July 1, 2025, before legal sales begin. That law also repeals a sales tax exemption that previously existed for the purchase of electricity by qualified data centers.