Oregon State Income Tax in 2025: A Guide

Oregon has a graduated income tax, with four tax brackets and varying rates. How much you’ll pay depends on your income, filing status, and the deductions or credits you qualify for. These factors all work together to shape your final tax bill, so it’s worth knowing how they apply to you for the 2024 tax year (the taxes due in 2025).  

Whether you’re a longtime resident or new to the Beaver State, getting familiar with the basics can make filing your taxes smoother. 

*Note that you are still responsible for federal taxes if you meet the IRS income filing threshold. This article addresses state-specific taxes only.   

Oregon state income tax rates

Oregon’s state income tax brackets range from 4.75% to 9.9%, depending on your income and filing status. For most taxpayers, state income taxes for 2024 are due on April 15, 2025. Residents of Portland should also factor in the city’s $35 arts tax, which applies to many adult residents. 

If you’re looking to plan ahead, the state offers a simple tax calculator to estimate your tax liability. This can help you understand what tax bracket you fall in and what to expect when filing. 

Here is a list of Oregon’s tax rates by income range and filing status to give you a general idea of how the state’s tax brackets break down:

Single or Married Filing Separately

Taxable income range	Tax calculation
$0 to $4,300	4.75% of taxable income
$4,301 to $10,750	$204 plus 6.75% of the amount over $4,300
$10,751 to $125,000	$639 plus 8.75% of the amount over $10,750
Over $125,000	$10,636 plus 9.9% of the amount over $125,000

Married Filing Jointly, Head of Household, or Qualifying Surviving Spouse

Taxable income range	Tax calculation
$0 to $8,600	4.75% of taxable income
$8,601 to $21,500	$409 plus 6.75% of the amount over $8,600
$21,501 to $250,000	$1,280 plus 8.75% of the amount over $21,500
Over $250,000	$21,274 plus 9.9% of the amount over $250,000

Source: Oregon Department of Revenue

What is the standard deduction in Oregon?

The standard deduction reduces the amount of your income subject to taxes. Here’s what it looks like for tax year 2024: 

• Single or Married Filing Separately: $2,745 
• Married Filing Jointly or Qualifying Surviving Spouse: $5,495 
• Head of Household: $4,420 

Most taxpayers use the standard deduction because it results in a lower taxable income than itemizing deductions. If your deductible expenses don’t exceed these amounts, the standard deduction is a straightforward way to simplify your filing while maximizing your deductions.

Who has to file Oregon state income tax?

You must file an Oregon state income tax return if you’re:

• An Oregon resident with income, or
• A part-year resident or nonresident with income from Oregon sources. 

Residents file a state tax return for all their income, while part-year residents and nonresidents only report Oregon-sourced income. 

Additionally, you must file if your gross income meets or exceeds certain thresholds for your filing status.

Filing status	Residents	Part-year and nonresidents
Single or Married Filing Separately	$7,710	$2,745 (Exception: If your spouse files and claims itemized deductions, there is no threshold and you are required to file an Oregon return)
Married Filing Jointly	$15,425	$5,495
Head of Household	$9,665	$4,420
Qualifying Surviving Spouse	$10,740	$5,495

Source: Oregon Department of Revenue

If you meet these state filing thresholds, you’re responsible for filing Oregon state income taxes. Be sure to file to ensure you stay compliant and avoid potential penalties.

How Oregon residency impacts tax filing

Oregon has three residency classifications: resident, part-year resident, and nonresident. Each has its own rules for what income is taxed and how you file. 

The table below explains each status, who qualifies, and how Oregon taxes income for each group. 

Residency status	Definition	How Oregon taxes income
Resident	You lived in Oregon for the full year or Oregon is your permanent home.	Taxes all income, regardless of where it was earned.
Part-year resident	You lived in Oregon for part of the year, either moving in or out.	Taxes all income earned while a resident, plus Oregon-sourced income earned as a nonresident.
Nonresident	You lived outside Oregon for the full year but earned income from Oregon sources.	Taxes only income earned from Oregon sources.

Other income tax considerations in Oregon

Certain types of income, like retirement benefits and military pay, have unique tax treatments in Oregon. Here’s a quick look at how they’re handled: 

• Retirement and pension income tax: Oregon taxes most retirement income, including pensions and distributions from retirement accounts like 401(k)s or IRAs, though you may be eligible for a retirement credit depending on your age and income.
• Investment income tax: Capital gains are taxed at the same rate as other personal income. 
• Social Security income tax: Oregon doesn’t tax Social Security or Railroad Retirement income. 
• Military income tax: Military pay is not taxed for military members and their spouses who elect a state of residence other than Oregon. Resident military members—including National Guard members who are stationed outside Oregon—may be eligible for military pay subtractions for income that was taxable on their federal return, including training pay or reenlistment bonuses.
  

Common Oregon state tax credits

Oregon offers a range of tax credits to help reduce what you owe and keep more money in your pocket. Here’s a quick look at some of the most common credits and how they work. 

Tax credit	Description	Amount
Earned Income Credit (EIC)	Credit for low-income working taxpayers.	9% of federal EIC amount; 12% if you have a qualifying dependent under age 3; maximum federal Earned Income Tax Credit (EITC) is $7,830 for 2024 tax year.
Oregon Kids Credit	Helps low-income families with dependent children.	$1,000 per qualifying child (for up to five dependent children).
Working Family Household and Dependent Care Credit	Supports low to moderate income working families with care expenses.	Varies based on household size and qualified expenses.
Retirement Income Credit	Benefits seniors who are 62 or older with specific retirement income.	Varies based on income.
Kicker Refund	Refund for surplus state revenue that is distributed during odd number years.	Amount depends on state budget surplus.
Credit for Taxes Paid to Other States	Avoids double taxation on out-of-state income.	Equal to the lesser of taxes paid to other states or the amount Oregon would have taxed.
Personal Exemption Credit	Reduces taxable income for each household member.	$249 per exemption for 2024 (if AGI is less than 100,000 for Single or 200,000 for Married Filing Jointly).

Source: Oregon Department of Revenue 

These credits can make a big difference when it’s time to file your taxes. Be sure to check which ones apply to your situation so you can get the most out of your Oregon state income tax refund.

How to file Oregon state income tax

Filing your Oregon taxes doesn’t have to be stressful. Whether you’re a full-year resident, part-year resident, or nonresident, TurboTax is here to help. 

Planning to file on your own? TurboTax guides you step by step to ensure you claim every deduction and credit you qualify for. And if you want professional tax help, simply connect with a TurboTax expert for personalized advice, or let us handle filing for you. 

Take the guesswork out of filing your Oregon state income tax. TurboTax makes it simple to maximize your refund and keep more of what you’ve earned.