Oregon Paycheck Calculator - SmartAsset (2024)

Oregon Paycheck Calculator

Oregon Paycheck Quick Facts

• Oregon income tax rate: 4.75% - 9.90%
• Median household income: $76,632 (U.S. Census Bureau)
• Number of cities that have local income taxes: 24

How Your Oregon Paycheck Works

Exactly how much your employer deducts from your wages for federal income taxes depends on factors like your marital status, salary and whether you have any dependents. It’s also worth noting that the IRS made major revisions to the W-4 in recent years. The new form doesn't let filers claim allowances anymore, nor are personal or dependency exemptions allowed. 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.

Beyond federal income taxes, your employer will also withhold Social Security and Medicare taxes from each of your paychecks. Together, these two make up the FICA taxes. Social Security tax is withheld at 6.2% and Medicare tax at 1.45% of your wages. Your employer then matches those amounts, so the total contribution is double what you paid. If you earn wages in excess of $200,000 as a single filer, head of household or qualifying widow(er), these wages are subject to a 0.9% Medicare surtax. Married couples filing jointly pay this tax on wages that exceed $250,000, while married couples filing separately pay it on wages above the $125,000 threshold.

Taxpayers who are self-employed will have to pay the entire Social Security and Medicare contributions themselves. If you fall into this camp, make sure that during tax season you look into possible deductions to help recoup the money you spend on the “employer” portion of FICA taxes. For help filing your taxes and maximizing your deductions, consider working with a financial advisor who specializes in taxes.

There are a few other deductions that can impact the size of your paychecks. If you pay for any benefits from your employer, such as health or life insurance, any premiums you pay will come out of your paycheck. Contributions you make to a retirement plan, like a 401(k), or to a medical expense account, like a health savings account (HSA), will also come out of your paycheck. Also keep in mind that these accounts take pre-tax money. That’s money that your employer removes from your pay before taxes are applied. While putting money in these accounts shrinks your paycheck, it also lowers your taxable income (and, in the case of retirement accounts, simultaneously helps secure your financial future).

In addition to federal taxes, Oregon taxpayers have to pay state taxes. Oregon has some of the highest tax burdens in the U.S. The state uses a four-bracket progressive state income tax, which means that higher income levels correspond to higher state income tax rates. These rates range from 4.75% to 9.90%. For 2023, single filers and married couples filing separately , separately with more than $125,000 in taxable income have to pay that top rate. That income threshold is doubled for married people filing together and heads of household.

Payrolls and self-employed workers who earn money in the Tri-County Metropolitan Transportation District (TriMet) have to pay an additional transit tax of 0.8037% in 2023 (up from 0.7937% in 2022) and 0.8137% in 2024. Payrolls and self-employed workers who earn money in the Lane County Mass Transit District (LTD) may also have to pay an additional tax. For 2023, the LTD tax rate is 0.0078 (up from 0.0077% in 2022. The LTD tax rate will rise to 0.0079 in 2024.

Meanwhile, the greater Portland area's Metro Supportive Housing Services Tax is a 1% levy on taxable income above $125,000 for individuals and $200,000 for married couples filing jointly. Taxpayers in Multnomah County, which is home to Portland, also pay the Preschool For All Personal Income Tax. For single filers, this is a 1.5% tax on income above $125,000 and 3% on income above $250,000. Married couples filing jointly pay 1.5% on income above $200,000 and 3% on income above $400,000. In 2026, this tax rate will increase by 0.8%.

While the state income taxes deal a heavy hit to some earners' paychecks, Oregon's tax system isn't all bad news for your wallet. One of Oregon's redeeming tax qualities is its absence of state or local sales taxes. 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.

A financial advisor can help you understand how taxes fit into your overall financial goals. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.

How You Can Affect Your Oregon Paycheck

While taxes are a part of life, you can play a role in how much comes out of your paycheck. One thing you can do is tweak your tax withholdings by asking your employer to withhold an additional dollar amount from your paychecks.

To do this, simply file a new W-4 and write in the extra amount you'd like withheld. For example, say you want to withhold an additional $25 each month. Write $25 on the line of the W-4 that asks how much of an additional withholding you want to be taken from your paycheck. While this will result in slightly less money per paycheck, it could save you money come tax time.

Another way you can alter your paycheck is to change your contributions to employer-sponsored retirement or medical expense accounts. As mentioned above, these are pre-tax contributions, so not only do they help you save for the future, they also save you money on your taxes now.