Free Oregon Payroll Tax Calculator

How to Use the Oregon Payroll Tax Calculator (Step-by-Step)

Understanding your paycheck is crucial, and our Oregon Payroll Tax Calculator simplifies the process. Follow these easy steps to get an accurate estimate of your net pay:

Step 1: Enter Your Location and Filing Status

Country: Ensure “United States” is selected. (This is pre-filled.)
Province/State: Choose “Oregon” from the dropdown menu. (This is pre-filled.)
Federal Filing Status: Select your current federal filing status (e.g., Single, Married Filing Jointly, etc.) from the dropdown. This reflects how you file your federal taxes.
Federal Allowances: Enter the number of federal allowances you are claiming. This number affects the amount of federal income tax withheld from your paycheck. (Use your W-4 form as a guide.)
State Filing Status: Choose your current Oregon state filing status from the dropdown. It may be the same as your federal status, but confirm based on your state tax situation.
State Allowances: Enter the number of state allowances you are claiming. This number affects the amount of Oregon state income tax withheld from your paycheck.

Step 2: Input Your Pay Information

Annual Pay Periods: Select how often you receive your paycheck (e.g., Bi-Weekly (26), Weekly, Monthly) from the dropdown. This is essential for accurate annual calculations.
Gross Wage/Pay Period: Enter your total earnings before any deductions for the pay period. This is your gross pay.
Pay Date: Select the pay date using the calendar tool. This is for your reference and does not affect the tax calculations.

Step 3: Calculate Your Taxes

Click the “Calculate” button.
The calculator will instantly display your estimated:
- Pay Period Section:
  - Taxable Income: The portion of your income subject to taxes for the pay period.
  - Federal Tax: The estimated federal income tax withheld for the pay period.
  - State Tax: The estimated Oregon state income tax withheld for the pay period.
  - Total Tax: The sum of federal and state taxes for the pay period.
- Annual Section:
  - Taxable Income: Your estimated annual taxable income.
  - Federal Tax: Your estimated annual federal income tax.
  - State Tax: Your estimated annual Oregon state income tax.
  - Total Tax: Your estimated total annual taxes.

Step 4: Review and Adjust (If Needed)

Carefully review the calculated results.
If you need to make changes, adjust the input fields and click “Calculate” again.
To start a new calculation with different parameters, click the “New Calculation” button.

Important Notes:

This calculator provides estimates based on the information you provide.
Actual tax amounts may vary based on individual circumstances and additional deductions.
For precise tax calculations, consult a tax professional or refer to official IRS and Oregon Department of Revenue resources.
Keep your W-4 form updated to ensure accurate tax withholding.

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Oregon State Income Tax (SIT) Rates

Understanding how Oregon state income tax is calculated is essential for accurate payroll estimations. Oregon employs a progressive income tax system, meaning the tax rate increases as your income rises. Here’s a breakdown of the 2025 income tax rates:

For those filing as Single or Married Filing Separately:

If your annual income falls between $50,000 and $125,000, your Oregon state income tax is calculated as $4,090 plus 8.75% of the amount exceeding $50,000.
If your annual income is $125,000 or more, your Oregon state income tax is calculated as $10,652 plus 9.90% of the amount exceeding $125,000.

For those filing as Head of Household or Married Filing Jointly:

If your annual income falls between $50,000 and $250,000, your Oregon state income tax is calculated as $3,805 plus 8.75% of the amount exceeding $50,000.
If your annual income is $250,000 or more, your Oregon state income tax is calculated as $21,305 plus 9.90% of the amount exceeding $250,000.

Important Note for Lower Incomes:

If your annual income is less than $50,000, you will need to utilize the state’s Tax Tables for Form OR-40, which can be found on the Oregon Department of Revenue website, to determine your specific tax rate. These tables provide precise tax calculations for lower income brackets.

Additional Oregon State Income Tax Details:

Supplemental Withholding Computation: For supplemental wages like bonuses or commissions, Oregon mandates an 8.0% withholding rate.
Valid Filing Statuses: Oregon recognizes several filing statuses, including:
- S: Single or Married Filing Separately
- M: Married Filing Jointly
- S3: Claiming 3 or more allowances
Exemptions: The number of allowances you claim on your Form W-4 and Form OR-W-4 directly impacts your state income tax withholding. It’s crucial to fill these forms accurately. You can find Form OR-W-4 on the Oregon Department of Revenue website.
Reconciliation Frequency: Oregon requires employers to reconcile state income tax withholdings on a quarterly basis.

Oregon State Unemployment Insurance (SUI)

Oregon State Unemployment Insurance (SUI) is a program designed to provide temporary financial assistance to workers who lose their jobs through no fault of their own, provided they meet the state’s eligibility requirements. This program is crucial for supporting individuals during periods of unemployment.

Key Details of Oregon SUI Tax:

Taxable Wage Base: The taxable wage base for Oregon SUI is $54,300. This means employers pay SUI taxes only on the first $54,300 of each employee’s wages.
Employee Subject to Tax: Employees in Oregon are not subject to SUI tax; this tax is solely the responsibility of employers.
Rates for Experienced Employers: Experienced employers in Oregon pay SUI tax at rates ranging from 0.9% to 5.4%, depending on their experience rating.
Rates for New Employers: New employers in Oregon are assigned a rate of 0.109%.
Effective Period: The SUI tax rates are effective for the calendar year.
Voluntary Contributions Allowed: Oregon does not allow voluntary contributions for SUI.
Special Payroll Tax Offset Rate: Oregon has a special payroll tax offset rate, which is 0.139% for the first quarter of 2025 and 0.109% for the second through fourth quarters of 2025. This rate may be subject to change, so it’s essential to stay updated with the Oregon Employment Department.

Oregon State Disability Insurance (SDI)

State Disability Insurance (SDI) programs are designed to provide benefits to employees who are unable to work due to non-work-related illnesses or injuries. These programs are typically funded through mandatory payroll deductions from employees’ paychecks. However, Oregon does not require employers to collect an SDI tax. Therefore, there is no mandatory state disability insurance tax withheld from employee paychecks in Oregon.

Oregon Paid Sick Leave (PSL)

While Oregon does not require employers to collect a specific Paid Sick Leave (PSL) tax, the state does have a program that mandates employers to provide paid sick leave to eligible employees.

Key Details of Oregon PSL:

Covered Employers: Any employer with ten or more employees within the state of Oregon is required to provide paid sick leave.
Covered Employees: All full-time and part-time salaried, hourly, commissioned, and piece-rate employees are covered. This also includes home care employees who provide hourly or live-in care to the elderly or disabled and receive funds from the state’s Department of Human Services.
Accrual Method(s): Employees accrue paid sick leave at a rate of one hour for every 30 hours worked.
Annual Accrual Maximum: Employees can accrue a maximum of 40 hours of paid sick leave per year.
Carryover Maximum: Employees can carry over a maximum of 40 hours of accrued paid sick leave from one year to the next.
Total Accrual Maximum: The total maximum accrual of paid sick leave is 80 hours.
Frontloading Allowed: Employers are permitted to frontload paid sick leave, meaning they can provide the full amount of leave at the beginning of the year.

Oregon Paid Family and Medical Leave (PFML) Tax

Oregon’s Paid Family and Medical Leave (PFML) program, also known as Paid Leave Oregon, is designed to provide financial support to eligible employees who need to take time off for qualifying family and medical reasons. Similar to State Disability Insurance (SDI), this program is funded through mandatory payroll deductions.

Key Details of Oregon PFML:

Covered Employees: Any individual who works in Oregon and has earned at least $1,000 in the year preceding their application for leave is covered under this program.
Covered Employers: All employers in Oregon are required to participate in the Paid Leave Oregon program.
Tax Rate: The tax rate for PFML is 1% of an employee’s gross wages.
- Large Employers (25 or more employees): Large employers contribute 40% of this 1% tax, while employees contribute the remaining 60%.
- Small Employers (fewer than 25 employees): Small employers are not required to contribute to the employee portion of the tax but may choose to do so.
Wage Base Limit: The maximum wages subject to the PFML tax are $176,100.
Maximum Leave Available: Eligible employees can take up to 12 weeks of leave. If the leave is pregnancy-related, employees can take up to 14 weeks of leave.
Wage Replacement: The wage replacement amount varies based on the employee’s average weekly wage from the prior year. It can go up to 120% of the state’s average weekly wage.

Oregon Family Leave Act (OFLA)

The Oregon Family Leave Act (OFLA) provides job-protected, unpaid leave to eligible employees for qualifying family and medical reasons. Unlike PFML, OFLA does not involve a payroll tax.

Key Details of Oregon OFLA:

Covered Employees: Employees are covered by OFLA if they have worked an average of 25 hours per week for 180 days.
Covered Employers: Employers with 25 or more employees are subject to OFLA regulations.
Maximum Leave Available: Eligible employees can take up to 12 weeks of unpaid leave.
Wage Replacement: OFLA does not provide wage replacement. It is an unpaid leave program.

Oregon Workers' Benefit Fund Tax

The Oregon Workers’ Benefit Fund plays a crucial role in providing essential support to workers and their families in cases of workplace injuries or fatalities. This fund assists with return-to-work programs, provides benefits to permanently and totally disabled workers, and supports family members of workers who die due to workplace injuries or diseases.

Key Details of the Workers' Benefit Fund Tax:

Tax Rate: The tax is $0.22 per hour worked by the employee.
Tax Responsibility: Employers and employees share this tax burden equally.
Payment Frequency: Employers have the option to pay the collected amounts to the state either annually or quarterly.

Oregon Transit Tax

Oregon, both at the state and local levels, mandates transit taxes to support transportation infrastructure. These taxes vary depending on the employee’s work location.

Key Details of Oregon Transit Tax:

Statewide Transit Tax: A 0.1% statewide transit tax is levied on both resident and nonresident employees working in Oregon.
Local Transit Taxes: Local transit taxes are the responsibility of employers and are calculated as a percentage of the employee’s gross wages. The specific rates vary by location:
- Canby: 0.60%
- Lane: 0.80%
- Sandy: 0.60%
- South Clackamas: 0.50%
- Tri-Met: 0.8237%
- Wilsonville: 0.50%

Miscellaneous Oregon Tax Information

Oregon utilizes a combined tax reporting system to streamline the remittance of various payroll taxes.

Oregon Quarterly Combined Tax Report (Form OQ):

Employers use Form OQ to calculate and remit the following taxes on a quarterly basis:
- State Income Tax (SIT) and State Unemployment Insurance (SUI)
- Transit taxes
- Paid Family and Medical Leave (PFML) taxes
- Workers’ Benefit Fund tax
In addition to Form OQ, employers may need to submit:
- Oregon Schedule B Form: This form is used when SIT deposits are required to be submitted semi-weekly or on a one-banking-day basis.
- Form 132 (Employee Detail Report): This form reports the total gross wages of each Oregon employee.
For comprehensive instructions and details on these forms, employers should refer to the state’s Combined Payroll Tax Report Instructions.

Disclaimer: The content provided on this webpage is for informational purposes only and is not intended to be a substitute for professional advice. While we strive to ensure the accuracy and timeliness of the information presented here, the details may change over time or vary in different jurisdictions. Therefore, we do not guarantee the completeness, reliability, or absolute accuracy of this information. The information on this page should not be used as a basis for making legal, financial, or any other key decisions. We strongly advise consulting with a qualified professional or expert in the relevant field for specific advice, guidance, or services. By using this webpage, you acknowledge that the information is offered “as is” and that we are not liable for any errors, omissions, or inaccuracies in the content, nor for any actions taken based on the information provided. We shall not be held liable for any direct, indirect, incidental, consequential, or punitive damages arising out of your access to, use of, or reliance on any content on this page.

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