Taxes in Oregon for Small Business: The Basics

In Oregon, the median property tax rate is $823 per $100,000 of assessed home value. Oregon has a relatively high income tax at 9.90% (which is still not in the top 5 states for income tax). Alcohol and transportation-related taxes are also relatively low for Oregon residents compared to other states. A flat tax means every resident pays the same rate, regardless of income.

• That’s money that your employer removes from your pay before taxes are applied.
• Nearly all of the revenue would come from foreign, out-of-state, and rich investors.
• Oregon has a graduated individual income tax, with rates ranging from 4.75 percent to 9.90 percent.
• We believe everyone should be able to make financial decisions with confidence.
• The first state income tax, as the term is understood today in the United States, was passed by the State of Wisconsin in 1911 and came into effect in 1912.
• Many or all of the products featured here are from our partners who compensate us.

The distinction between the two is the S status files with the Internal Revenue Service (IRS), which allows income derived from sales to pass through the corporation to its owners. Because the owners then pay personal income tax on this money, the federal government does not charge the business a corporate tax, considering this to be double taxation. California is not one of them, but Oregon is, with the exception of a $150 excise tax that must be paid by S corporations. In the majority of partnerships and sole proprietorships, the business owner receives their share of income from the business directly, and it does not pass through the company. In these cases, Oregon does not impose any income tax on the business, even the minimum excise tax of $150.

Income

We can also help you understand some of the key factors that affect your tax return estimate. We’ll calculate the difference on what you owe and what you’ve paid. If you’ve already paid more than what you will owe in taxes, you’ll likely receive a refund. The study takes into account the state excise taxes that each state collects on items such as oil and gas, cigarettes, alcohol, and even telephone bills. Oregon can prevent multinational corporations from shifting profits overseas and create a more level playing field for Oregon businesses by enacting “complete reporting”.

Becker,[55] however, sees faculty taxes as routine parts of several colonies’ finances, including Pennsylvania. All features, services, support, prices, offers, terms and conditions are subject to change oregon income tax rate without notice. Let an expert do your taxes for you, start to finish with TurboTax Live Full Service. Or you can get your taxes done right, with experts by your side with TurboTax Live Assisted.

Bottle up your savings.

Most states require taxpayers to make quarterly estimated tax payments not expected to be satisfied by withholding tax. A myriad of taxes — such as property, license, state and local sales, inheritance, estate, and excise taxes — can eat away at your income. Often, the biggest tax ticket citizens face after paying the Internal Revenue Service is the one their state presents. As a result, identifying the states with the lowest taxes might be a smart financial move to make.

If you were Black, mixed-race, Hawaiian, or Chinese, you had to pay a tax not levied on white Oregonians. If you couldn’t afford it, you paid it off by performing road work. While Oregon does not have a general sales tax, it does tax the sale of alcohol. Oregon has a tax on wine at 67 cents per gallon and beer is taxed at just eight cents per gallon. You can deduct the amount of your expenses that exceeds 7.5% of your federal adjusted gross income (AGI).

Brush up on income tax basics.

The retail price of cigarettes, for instance, is more than 40 percent taxes on average. In some states, like Minnesota and New York, more than 50 percent of the price paid by consumers comes from taxes. If you are a disabled veteran — or the surviving spouse of a veteran — you may be entitled to exempt a portion of your property taxes. You may be entitled to exempt a portion of your property taxes if you meet certain qualifications.

For forms and publications, visit the Forms and Publications search tool. We cannot guarantee the accuracy of this translation and shall not be liable for any inaccurate information or changes in the page layout resulting from the translation application tool. This Google™ translation feature, provided on the Franchise Tax Board (FTB) website, is for general information only.

Its property taxes are also below average when compared to other states. For details about mortgages in the state, including rates and specifics about each county, check out our comprehensive Oregon mortgage guide. These state income tax rates apply to income earned in 2023, which is reported on tax returns filed in 2024. State income tax rates receive relatively little attention compared with federal income taxes, but they can still put a large dent in your wallet. How large depends on the amount you earn, as well as where you live and work.

If you receive a U.S. government pension for service before October 1991, you may be entitled to
subtract all or part of that pension on your Oregon return. Oregon
doesn’t tax Social Security or Railroad Retirement Board benefits. You may claim this credit if you had income that was taxed by California and another state. The credit will offset the taxes paid to the other state, so you are not paying taxes twice. Oregon Law provides a residential property tax exemption for qualified military service members that exempts up to $96,283 of the assessed value of their home for 2021. To claim this exemption, qualified military service members should file an Oregon Active Duty Military Service Member’s Exemption Claim form along with the required documentation.