For more on how deductions change taxable wages, see our
pre-tax vs. post-tax deductions guide.
Oregon Paycheck Tax Calculator: How Oregon Withholding Works
An Oregon paycheck calculator has more moving
parts than most. On your pay stub you'll see
OR SIT or Oregon withholding,
OR STT for the statewide transit tax, OR PLO or PFMLI for Paid
Leave Oregon, and sometimes METRO SHS or MULT PFA. Our
pay stub abbreviations list
explains the other codes.
Federal Withholding for Oregon Paychecks
Federal withholding uses your Form W-4 and the 2026 federal
brackets. Because Oregon subtracts it, anything that raises
federal withholding (like Step 4(c) extra) slightly lowers Oregon
withholding. If you claim the new overtime or tips deductions, our
W-4 Step 4(b) worksheet guide
shows how to enter them, and our
2026 federal tax withholding guide
covers the rest.
Working Across State Lines
Oregon has no reciprocal agreements. Washington residents who work
in Oregon pay Oregon income tax, transit tax and Paid Leave Oregon
on those wages. Oregon residents who work in
Idaho
or California
have that state's tax withheld and claim a credit on their Oregon
return.
Bonuses
Oregon allows a flat 8% withholding rate on bonuses paid
separately. Transit tax and Paid Leave Oregon still apply, as do
federal withholding (usually a flat 22%) and FICA. See
why bonuses are taxed so high.
Employer Payroll Costs in Oregon
Employers pay state unemployment insurance
on the first $56,700 of each employee's 2026 wages, the employer
share of Paid Leave Oregon (0.4% with 25 or more employees) and, in
the Portland and Eugene areas, the TriMet or Lane transit payroll
tax. None of those come out of your pay. At year-end, our
W-2 form generator
can use the same wage and withholding totals.
Why Your Actual Oregon Paycheck May Differ
This calculator is a close estimate, not your employer's payroll
run. Your OR-W-4 on file, whether your employer uses the tables or
rounds to the dollar, the Paid Leave cap late in the year, benefit
elections and a 27th biweekly payday in some years can all move
the result a little.
Three-paycheck months
change monthly cash flow but not the tax on each check. For a full
checklist, see why your paycheck is lower than expected.
Official 2026 Oregon Payroll Sources
Payroll facts on this page are checked against
Oregon publication 150-206-436, the 2026 withholding formulas,
the Oregon Employment Department's 2026 rate announcement,
Portland Revenue Division withholding guidance
and IRS Publication 15-T for 2026.
Reviewed September 25, 2026.