Oregon Form OR-W-4 Overview
A completed Oregon Form OR-W-4 tells your employer how much Oregon income tax to withhold. You report your marital status, withholding allowances, and any additional amount you want withheld. Employers are required to pay Oregon withholding tax on all wages earned by resident employees.
Oregon Tax Withholding
- Before paying employees in Oregon, an employer must first get a business identification number (BIN).
- Complete and submit a new Form OR-W-4 when you start a new job or when your tax situation changes.
- The OR-W-4 instructions help estimate Oregon tax withholding. Use the Oregon Withholding Calculator for a more accurate estimate.
Tax Deductions and Rates in Oregon
- Oregon has three common tax deductions: the Standard Deduction, Personal Exemption, and Dependent Deduction.
- Oregon collects corporate income tax at a maximum marginal rate of 7.6%.
- Capital gains can be taxed at 9.9% depending on total income.
- Oregon taxes alcohol sales but does not have a general sales tax.
Mandatory Requirements
- A W-4 form is mandatory and requires a business identification number (BIN).
- Employers must provide employees with a redesigned 2020 Form W-4.
- Employers withhold income tax from resident employees in Oregon, even if they work from home.
- Complete and submit a new Form OR-W-4 when starting a new job or when tax situations change.
Oregon Form OR-W-4 for 2023
- Use Form OR-W-4 to designate withholding from various payments and consider if you or your spouse have multiple jobs.
- The form instructions help estimate Oregon tax withholding accurately.
- Oregon income taxes are a significant source of revenue for the state’s General Fund.