Oregon Paystub Generator - 9.9% Top Rate, No Sales Tax, STT + Paid Leave, Portland Can Hit 14%, Free Preview

Oregon's 4 Tax Brackets for 2026 (4.75% to 9.9%, 3rd Highest Top Rate in America)

Oregon's income tax rates are set by statute at 4.75%, 6.75%, 8.75%, and 9.9%. The dollar thresholds adjust for inflation each year. Per LegalClarity (April 2026), citing the Oregon Department of Revenue Withholding Tax Formulas for 2026:

The 4.75% and 6.75% brackets together cover only about $10,800 of income. Everything from $10,800 to $125,000 is taxed at 8.75%. For the average Oregon worker earning $50,000-$80,000, the 8.75% rate applies to the vast majority of their income. The lower brackets barely make a dent. At $75,000 income, the effective state rate is roughly 8.0%.

The 9.9% top rate kicks in at just $125,000 for single filers. Per USTax.tools (June 2026): "Oregon's top bracket threshold is unusually low ($125,000 single), so many dual-income households and professionals reach the 9.9% rate quickly." Only California (13.3%) and Hawaii (11%) have higher top rates. Minnesota's 9.85% is just below Oregon's 9.9%.

Oregon Allows a Federal Tax Deduction (Extremely Rare!)

Here's something almost nobody knows: Oregon is one of very few states that lets you deduct a portion of your federal income taxes paid from your Oregon taxable income. The deduction is capped at approximately $7,050 for single filers. If you paid $15,000 in federal income tax, you can deduct $7,050 from your Oregon taxable income, saving roughly $617 in state tax at the 8.75% bracket. This doesn't exist in California, New York, or almost any other high-tax state.

Every Line on Your Oregon Pay Stub: State Tax, STT, PLO, and Portland Taxes Explained

Six deduction lines on every Oregon stub. That's more than North Carolina (4 lines), Ohio without city taxes (4 lines), and most flat-tax states. Oregon's stub complexity comes from different places than New Jersey's (which has TDI, FLI, and SUI instead of STT and PLO), but the total line count is comparable.

What Is STT (Statewide Transit Tax)?

Per LegalClarity (April 2026): "Every worker in Oregon pays a statewide transit tax of 0.1% on wages, regardless of income level." It has no income cap. Your employer withholds it from every paycheck. On $60,000 annual wages, the STT adds $60 for the year ($2.31 per biweekly check). It funds public transit infrastructure across the entire state, not just the Portland area.

What Is Paid Leave Oregon (PLO)?

Per USA Jobs Kit (April 2026): "Employee share is 0.6% on wages up to $184,500." The total program contribution rate is 1.0%, split 60% employee and 40% employer for companies with 25 or more workers. The program covers up to 12 weeks of paid family leave, medical leave, and safe leave. If you see "PLO" or "Paid Leave" on your stub, that's this program.

Portland's Combined Rate Can Hit 14% (Rivals California and New York City)

If you live and work in Portland proper (Multnomah County within the Metro district), you may owe two additional local income taxes on top of the state rate and the STT/PLO:

Per LegalClarity: "A single filer earning $300,000 in 2026 would pay the state's 9.9 percent top rate, the Metro SHS 1 percent tax, and the Multnomah County 3 percent tax on portions of that income. A combined marginal rate above 13 percent before federal taxes." Factor in the 0.1% STT and it's above 14%. Per LegalClarity: "That rivals the combined rates in California and New York City."

Per LegalClarity: "A rate increase of 0.8% takes effect January 1, 2027" for the Multnomah County PFA, which will push the lower tier to 2.3% and the upper tier to 3.8%. Portland's combined rate will climb even higher in 2027.

Not everyone in Portland pays these taxes. The Metro SHS and Multnomah PFA only apply to income above their thresholds ($128K and $125K for single filers). A Portland worker earning $80,000 pays zero on both local taxes. The local layers only bite for six-figure earners.

The Oregon Trade-Off: Your Paycheck Takes a Bigger Hit, But Nothing at the Register

Oregon has zero sales tax. One of only five states (along with Montana, New Hampshire, Delaware, and Alaska). Groceries, clothing, electronics, furniture, cars, building materials: all tax-free at purchase. Washington state next door charges roughly 8.9% in combined sales tax. On a $30,000 car purchase, an Oregon buyer saves $2,670 compared to a Washington buyer.

Per CountryTaxCalc (May 2026): at $100,000 income, "Moving from Oregon to Washington saves $7,056/year" in income tax, "but Washington charges 8.9% sales tax. Break-even: if you spend over $79,000/year on taxable goods, Oregon is cheaper. Most families spend $40-60K, so Washington wins for W-2 earners. Oregon wins for retirees with low income but high spending."

The trade-off matters for your paycheck because Oregon relies almost entirely on income tax for revenue. Per Netchex (March 2026): "Oregon has no sales tax, making income tax the state's primary revenue source." That's why the rates go up to 9.9% and why there are extra payroll taxes like the STT and PLO that other states don't need.

What Gets Taken Out of an Oregon Paycheck: Portland vs. Bend

Portland Worker (Standard Income), $30/hr, Biweekly

Setup: Jenna works at a tech company in downtown Portland. She earns $30/hr, biweekly, 80 hours, files Single on OR-W-4. Annual gross: $62,400. Below the Metro SHS and Multnomah PFA thresholds, so no local income taxes.

SIX deduction lines. The Oregon state tax ($187.20) is the largest state-level deduction we've seen at this income level across all 36 states we've analyzed. The STT ($2.40) and PLO ($14.40) are small individually but they add up over a year: $60 + $360 = $420. That's a phone bill.

Bend Worker (Same Salary, No Portland Local Taxes), $30/hr

Setup: Sam works at a tourism company in Bend. Same salary, same hours, same filing status. Bend is outside the Metro district and Multnomah County.

Sam's stub looks identical to Jenna's. Same six deduction lines, same amounts. At $62,400 annual income, neither worker hits the $125,000/$128,000 thresholds for Metro SHS or Multnomah PFA. The Portland local taxes don't apply to either of them at this income level. The difference between Portland and Bend only appears at $125,000+ where the local layers kick in.

Portland High Earner, $75/hr, Biweekly (Where the Local Taxes Bite)

Setup: Marcus works at a software company in Portland. He earns $75/hr, biweekly, 80 hours ($156,000 annual). He lives in Multnomah County. He's above the Metro SHS ($128K) and Multnomah PFA ($125K) thresholds.

EIGHT deduction lines. The Metro SHS and Multnomah PFA add roughly $745/year at this income. Combined Oregon-specific deductions (state + STT + PLO + SHS + PFA): approximately $16,200/year on $156,000 gross. That's a 10.4% total Oregon tax burden before federal taxes.

Estimates based on 2026 rates and standard withholding. Actual amounts depend on OR-W-4, federal W-4, and voluntary deductions.

The Oregon Kicker: The Surplus Refund No Other State Has

Oregon has a mechanism called the "Kicker" that doesn't exist anywhere else in America. Per CountryTaxCalc: "If state revenue exceeds forecast by 2%+, Oregon refunds excess as tax credit." The surplus goes back to taxpayers as a credit on the following year's return. It's not a political decision. It's automatic under Oregon law.

The Kicker has been triggered multiple times. When it fires, individual taxpayers can receive credits worth hundreds or even thousands of dollars depending on their tax liability. If you filed an Oregon return last year and a Kicker was triggered, you'll see the credit on your current return. Workers sometimes forget to file their Oregon return because they think they don't owe anything, and they leave the Kicker credit on the table.

Oregon's Three-Tier Minimum Wage Changes July 1, 2026 (And There's No Tip Credit)

Oregon is one of the few states with geographic minimum wage tiers. Different parts of the state have different minimum wages based on cost of living. Per Barran Liebman (April 28, 2026), the new rates effective July 1, 2026:

Oregon does NOT allow tip credits. Per OnPay (May 2026): "tipped employees must be paid the full minimum wage, regardless of tips." A server in Portland earns at least $16.80/hr (after July 1) PLUS tips. In states with tip credits (like Texas at $2.13/hr or Oklahoma at $2.13/hr), the employer pays a fraction and tips make up the rest. Oregon doesn't allow that. The minimum is the minimum, tips are extra.

Oregon Payroll Requirements 2026: What Every Employer Needs to Know

Oregon vs. Washington: The Most Tax-Consequential State Line in the West

The Columbia River separates Oregon from Washington. Oregon has no sales tax but a 9.9% top income tax. Washington has no income tax but an ~8.9% sales tax. Thousands of workers cross this border daily, especially between Portland (OR) and Vancouver/Clark County (WA).

Per CountryTaxCalc: "Moving from Oregon to Washington saves $7,056/year at $100K income." But Washington's sales tax of ~8.9% applies to almost every purchase. "Break-even: if you spend over $79,000/year on taxable goods, Oregon is cheaper." Most families spend $40K-$60K on taxable goods, so Washington wins on pure math for W-2 earners. But retirees with low income and high spending often prefer Oregon.

Per CountryTaxCalc: "Don't live in WA and work in OR. You'll pay OR income tax on wages without WA benefits." A Clark County, WA resident commuting to a Portland job pays Oregon income tax on their Oregon-source wages. They don't get the WA no-income-tax benefit on those earnings.

Who Uses the Oregon Paystub Generator?

Portland Tech Workers

Nike HQ (Beaverton), Intel (Hillsboro, largest private employer in Oregon), Columbia Sportswear (Portland), Adidas North America (Portland), Puppet, Jama Software, and hundreds of startups. Portland's tech scene pays well but the combined 9.9%+ state rate means take-home is noticeably lower than equivalent salaries in Seattle (0% income tax). Workers who hit $125K face the 9.9% bracket, and those in Multnomah County add the PFA on top.

Healthcare Workers

OHSU (Oregon Health and Science University, the largest employer in Portland), Providence Health, Legacy Health, Kaiser Permanente Northwest. Travel nurses on 13-week contracts need stubs showing all six Oregon deduction lines, not just the state income tax.

Salem Government Workers

Salem is the state capital. State government employees, legislative staff, and Capitol-area workers earn Oregon wages in the 8.75% bracket for most of their income. Salem is in the "standard" minimum wage tier, not the Portland tier.

Bend/Central Oregon Workers

Tourism, recreation, craft beer, tech startups. Bend has grown rapidly. Workers there pay the same state tax and STT/PLO as Portland workers but skip the Metro SHS and Multnomah PFA local taxes. The "standard" minimum wage applies.

Timber and Agriculture Workers

Oregon's timber industry remains significant in rural counties. Agricultural workers in the Willamette Valley, eastern Oregon ranches, and coastal fisheries earn wages in the nonurban tier ($14.55/hr starting July 1). Their stubs have six lines but the state tax effective rate is lower due to lower incomes falling more heavily in the 4.75%-6.75% brackets.

Small Business Owners and Contractors

A coffee shop on Hawthorne Boulevard. A winery in the Willamette Valley. A fishing charter in Astoria. A ski shop in Mt. Hood. A construction crew in Medford. Oregon small businesses deal with six payroll deduction lines (state + STT + PLO), three-tier minimum wages, no tip credit, and one of the highest SUI wage bases in the country ($56,700). Our generator handles all of it. Self-employed workers carry the full 15.3% FICA self-employment tax per IRS rules.

How to Create an Oregon Pay Stub: 3 Steps

Oregon payroll has six deduction lines, three minimum wage tiers, and Portland-area local taxes for high earners. The generator handles all of it.

1. Enter company and employee info
   Business name, address, employee name, home address, work location, pay period dates. Oregon uses Form OR-W-4 for state withholding. Select the employee's work region for minimum wage tier (Portland Metro, Standard, or Nonurban). Indicate if the worker is in the Metro district or Multnomah County for local tax applicability.
2. Enter earnings and deductions
   Hourly rate or salary (at least $16.80/hr Portland Metro, $15.55 Standard, or $14.55 Nonurban after July 1), hours worked, any overtime. Add voluntary deductions. The tool runs your income through all four state brackets, adds the 0.1% STT and 0.6% PLO automatically, and applies Portland-area local taxes if applicable.
3. Free preview, then download
   Check every line. Gross pay, six mandatory deductions (federal, SS, Medicare, OR state, STT, PLO), any local taxes, voluntary deductions, net pay, YTD totals. Download when satisfied.

Start Your Oregon Pay Stub, Free Preview →

When You Need an Oregon Pay Stub as Proof of Income

Renting in Portland, Bend, Eugene, or Anywhere in Oregon

Portland's Pearl District, Alberta, and Hawthorne neighborhoods have competitive rental markets. Bend has seen rapid rent increases driven by remote workers. Eugene's market tightens near the University of Oregon. Landlords want two to three recent stubs showing gross monthly income of at least 2.5 times the rent. Oregon stubs with six deduction lines can look dense, but clean formatting helps landlords verify income quickly.

Mortgage Applications

Portland-area home prices are above the state median. Bend and the Willamette Valley wine country have also seen price increases. Lenders want two recent stubs. Stubs showing all six deduction lines plus the correct effective rate align with actual withholding.

Oregon DHS Programs (SNAP, Oregon Health Plan)

The Oregon Department of Human Services requires current income documentation for SNAP, the Oregon Health Plan (Medicaid), TANF, and other assistance programs through the ONE system (Oregon Needs + Eligibility). Pay stubs are the standard accepted document.