Oregon State Tax System Overview
Oregon has a graduated individual income tax, with rates ranging from 4.75 percent to 9.90 percent for four marginal tax brackets. Oregon’s tax brackets are indexed for inflation and updated yearly to reflect changes in the cost of living.
The state of Oregon does not have a general state sales tax. The personal income tax is the largest source of state tax revenue, expected to account for 86% of the state’s General Fund. Oregon’s taxable income is closely connected to federal taxable income.
Corporate Taxation in Oregon
In contrast to the corporate excise tax, Oregon’s corporate activity tax (CAT) is only assessed on companies that do business in Oregon and make over $1 million in taxable revenue. Businesses meeting this threshold pay 0.57% tax on commercial activity over $1 million plus a $250 fee.
C corporations pay Oregon’s corporation excise tax based on net income or net sales, whichever results in a greater tax amount. S corporations and LLCs classified as partnerships must pay a minimum corporation excise tax of $150.
Minimum Tax in Oregon
Oregon has a graduated income tax with rates from 4.75% to 9.90% across four brackets. The brackets are adjusted yearly for inflation. Oregon has no general sales tax. Income tax is the largest revenue source, providing 86% of the state’s General Fund.
Oregon’s taxable income aligns closely with federal definitions. The corporate activity tax only applies to companies doing over $1 million in Oregon revenue. Qualifying corporations pay 0.57% tax on activity above $1 million plus a $250 fee.
Corporations pay excise tax based on the greater of net income or sales. S-corps and partnerships pay a $150 minimum excise tax.