Oregon has no sales tax, but it makes up for it with one of the highest state income taxes in the country, running from 4.75% up to 9.9%.
Most full-time workers land in Oregon's 8.75% bracket, softened by a deduction for the federal tax they pay. Here is how Oregon's brackets and that unusual federal subtraction shape your paycheck. See your exact take-home with the free Oregon paycheck calculator.
How Oregon's income tax works
Oregon is a progressive-bracket state. After a small standard deduction ($2,745 single / $5,495 married for 2025), the rate climbs fast: 4.75% on the first few thousand dollars, 6.75% next, and 8.75% on most middle incomes, with 9.9% reserved for very high earners. Because the brackets are narrow at the bottom, a typical salary is mostly taxed at 8.75%.
Oregon's signature quirk is the federal tax subtraction: you can deduct the federal income tax you pay (up to about $8,500, phasing out at higher incomes) before calculating Oregon tax. That meaningfully lowers the bill and is built into our calculator.
| Taxable income | Rate |
|---|---|
| $0 – $4,300 | 4.75% |
| $4,300 – $10,750 | 6.75% |
| $10,750 – $125,000 | 8.75% |
| Over $125,000 | 9.9% |
Your take-home on a $65,000 salary in Oregon
Here is how a $65,000 salary breaks down for a single filer, using 2025 federal and FICA figures alongside Oregon's progressive brackets from 4.75% to 9.9%.
| Item | Annual |
|---|---|
| Federal income tax | $5,246 |
| FICA (Social Security + Medicare) | $4,973 |
| Oregon income tax | $4,687 |
| Take-home pay | $50,095 |
| Percent of gross kept | 77.1% |
On a $65,000 salary a single Oregonian keeps about $50,095, or 77.1% of gross, after roughly $4,687 of state income tax (already reduced by the federal subtraction), one of the lower take-home rates in the country. But Oregon charges no sales tax, so everyday purchases in Portland or Eugene cost less than in most states, partly offsetting the income-tax hit. Compare with Washington.
No sales tax, the federal subtraction, and Portland-area local taxes
Oregon's trade-off is the mirror image of Washington next door: Washington has no income tax but a high sales tax, while Oregon has no sales tax but a high income tax. Which is better depends on whether you earn more or spend more.
Watch for local income taxes in the Portland metro: the Metro Supportive Housing Services tax and Multnomah County's Preschool for All tax add 1% to 3% on higher incomes for people who live or work there. Our calculator models Oregon state tax only, so Portland-area residents should treat the result as a floor.
How to keep more of your Oregon paycheck
In a high-rate state like Oregon, pre-tax 401(k) and HSA contributions are unusually valuable: each dollar can save you well over 30% across federal and Oregon tax, and HSA dollars also avoid FICA. They are the most effective way to lift an Oregon take-home.