Free Tool
Oregon Tax Refund Calculator
Use this free calculator to estimate your Oregon state tax refund for the 2025-2026 tax year. Oregon uses a progressive income tax system with rates from 4.75-9.9%. Enter your income, filing status, and deductions below to see your estimated refund or balance due.
This calculator uses official Oregon Department of Revenue tax tables and standard deduction amounts for the 2026 tax year. Results are estimates and should be verified with a tax professional.
Oregon State Tax Calculator 2025-2026
Oregon Tax System Details
Oregon operates a progressive income tax system with 4 tax brackets. Tax rates range from 4.75-9.9%, applying to all taxable income earned by Oregon residents. The state standard deduction for 2026 is $2,605 for single filers and $5,210 for married filing jointly.
How Oregon Compares to Other States
Oregon's top rate of 9.9% is the sixth-highest nationally. Washington has no income tax, Idaho has a flat 5.8% rate, and California's rates reach 13.3%. Oregon's lack of a sales tax is a major differentiator — residents save approximately $2,500 per year compared to the average sales-tax state.
A single filer earning $80,000 would pay approximately $5,848 in Oregon state tax (about 7.3% effective). The absence of sales tax helps offset the high income tax for moderate-income households.
Deductions and Credits Available in Oregon
Oregon offers a property tax deferral program for seniors, a child and dependent care credit (up to $2,500 per child), and an earned income tax credit (12% of the federal EITC). Social Security benefits are fully exempt. A retirement income credit is available for those 62+ with limited income.
For federal tax purposes, Oregon residents can deduct their state income tax payments on their federal return if they itemize deductions, subject to the $40,000 SALT cap.
Sales Tax in Oregon
Oregon has no state or local sales tax, making it one of the most consumer-friendly states. A lodging tax applies in many areas. Property taxes average about 0.89% of home value.
Oregon Income Tax Overview
The standard deduction is subtracted from your gross income to determine your taxable income before the brackets are applied. Practical tip: the effective rate you actually pay is usually far lower than the top marginal rate. For typical middle-income earners, the effective state tax rate lands well below the headline rate.
The standard deduction directly reduces your taxable income before any tax brackets are applied. The state sales tax rate is None, which applies to most goods and some services depending on local laws. Property taxes in Oregon average approximately 0.91% of home value. For context, the national average property tax rate is roughly 1.1%. Residents should check their city and county rates, as local add-ons can significantly increase the combined sales tax rate above the state base rate.
Compared to neighboring states — Washington (none), Idaho (5.8%), California (13.3%), Nevada (none) — Oregon offers a distinct balance of rates, deductions, and available credits that can significantly impact your total tax burden. For retirement income: SS partially taxable, most retirement income taxable. Oregon has no sales tax but relatively high income tax. Oregon offers various state-specific deductions and credits that can reduce tax liability. The annual filing deadline for state income tax returns is April 15, matching the federal deadline. Taxpayers who cannot file by the deadline can request an automatic six-month extension, though any tax owed must still be paid by April 15 to avoid interest and penalty charges. Self-employed individuals, recent movers, and retirees with complex income sources should consult a qualified tax professional for personalized guidance.
Frequently Asked Questions About Oregon Taxes
What is the Oregon state income tax rate structure?
Oregon uses 4.75-9.9% progressive (4 brackets) system. This rate structure determines how much state tax you owe based on your taxable income after subtracting the standard deduction of $2,605 single / $5,210 married. Understanding where your income falls within this structure is the first step in estimating your state tax liability. Taxpayers should verify current year rates with the state department of revenue, as legislative changes can affect brackets and rates from year to year.
Does Oregon tax Social Security and retirement income?
SS partially taxable, most retirement income taxable. Social Security benefits are generally treated favorably across most states, and Oregon follows this approach. However, federal taxation of Social Security may still apply based on your combined income level. Retirees should also consider how Oregon handles pension income, 401(k) withdrawals, and IRA distributions when planning their retirement budget, as state-level treatment varies significantly across the country.
What are the sales and property tax rates in
The Oregon state sales tax rate is None. Combined state and local rates can vary by city and county. Property taxes average approximately 0.91% of home value. Oregon has no sales tax but relatively high income tax. Taxpayers should consider these consumption-based and property-based taxes when evaluating their overall tax burden, as they can significantly affect the true cost of living in Oregon compared to other states with different tax structures.