Oregon payroll taxes

Oregon state income tax: Progressive brackets. Employers withhold using your OR-W-4 (Oregon Employee’s Withholding Statement) and current state tables.
Local/personal taxes: Oregon withholds a Statewide Transit Tax (0.1%) from wages. Portland-area individuals may also owe Multnomah County and Metro personal income taxes (see local table below).
Employer payroll taxes (not deducted from employees): Oregon Unemployment Insurance (UI/SUI) and transit payroll taxes for employers in TriMet/LTD districts.
FICA (federal): Social Security and Medicare—see details below.
Federal income tax (FIT): Withheld per IRS rules and your federal Form W-4.
Pre-tax deductions: Traditional 401(k), HSA/FSA, Section 125 premiums may reduce FIT/state/local taxable wages (and sometimes FICA).
Post-tax deductions: Roth 401(k), garnishments, union dues, and other after-tax items reduce net pay after taxes.

How Your Oregon Paycheck Works

Start with gross pay (salary for the period or hourly rate × hours; include overtime where due).
Subtract pre-tax items (401(k), HSA/FSA, cafeteria plans) to determine taxable wages.
Apply FICA (Social Security to the federal wage base; Medicare on all wages; Additional Medicare for high earners).
Calculate federal withholding using IRS methods and your W-4 elections.
Calculate Oregon state withholding using OR-W-4 and current state tables.
Withhold Statewide Transit Tax (0.1%) and any local personal taxes your employer is required/able to withhold.
Employer separately pays Oregon UI (and employer transit payroll taxes) — these do not reduce your paycheck.
Subtract post-tax deductions to arrive at your net pay.

Oregon Income unemployment tax rate — 10 Years Data

Employees do not pay Oregon UI from wages. Employers contribute on a taxable wage base at new-employer or experience rates (confirm your annual rate notice).

Year	Employee UI Rate	Employee Pays?	Employer Taxable Wage Base (approx.)	New Employer Rate (typ.)	Experienced Employer Rate Range (approx.)
2016	0%	No	$36,900	~2.6%	~0.7%–5.4%
2017	0%	No	$38,400	~2.6%	~0.7%–5.4%
2018	0%	No	$39,300	~2.6%	~0.7%–5.6%
2019	0%	No	$40,600	~2.6%	~0.7%–5.6%
2020	0%	No	$42,100	~2.6%	~0.7%–5.8%
2021	0%	No	$43,800	~2.6%	~0.7%–5.8%
2022	0%	No	$47,700	~2.6%	~0.7%–6.0%
2023	0%	No	$50,900	~2.6%	~0.7%–6.2%
2024	0%	No	$52,800	~2.6%	~0.7%–6.4%
2025	0%	No	$54,200	~2.6%	~0.7%–6.6%

Oregon salary threshold

Oregon generally follows federal FLSA white-collar rules. Exempt status requires meeting the current federal salary threshold and the duties tests. Some Oregon industries (e.g., manufacturing) have daily overtime rules even when salaried non-exempt; check your role and duties carefully.

Median Household Income — Oregon (10 years, current dollars)

Illustrative nominal values showing trend; confirm the latest American Community Survey for official statistics.

Year	Median Household Income
2015	$60,000
2016	$61,500
2017	$63,400
2018	$65,700
2019	$67,100
2020	$68,900
2021	$76,000
2022	$83,000
2023	$86,000
2024	$88,000

Oregon Federal Insurance Contributions Act (FICA)

Social Security: 6.2% employee + 6.2% employer, up to the federal wage base.
Medicare: 1.45% employee + 1.45% employer on all wages.
Additional Medicare: 0.9% employee-only on wages above $200,000 (employer remains 1.45%).

Number of cities that have local income taxes

Oregon withholds a 0.1% Statewide Transit Tax from wages. In the Portland area, Multnomah County and Metro impose personal income taxes above set thresholds, and Portland assesses a flat Arts Tax. These are not employer city wage taxes, but they affect residents’ annual liabilities and paycheck withholding in certain jurisdictions.

Local personal income taxes affecting residents (illustrative)

Jurisdiction	Type	Employee Withholding?	Typical Rate / Amount	Notes
Statewide	Statewide Transit Tax	Yes	0.10% of wages	Withheld from all OR wages
Metro (Portland Tri-County)	Personal income tax	Sometimes	Bracketed; applies above thresholds	Annual return due; employer withholding may be available
Multnomah County	Personal income tax	Sometimes	Bracketed; applies above thresholds	Annual return due; employer withholding may be available
Portland (City)	Arts Tax	No payroll withholding	$35 per qualifying adult	Flat annual amount; billed separately

Oregon Wage and Hour Laws: Overtime, Pay Frequency

Overtime: Most non-exempt employees earn 1.5× after 40 hours/week. Manufacturing has additional daily overtime rules; agricultural overtime is phasing-in—check current thresholds.
Minimum wage: Oregon sets different minimums by region (Standard, Portland Metro, Nonurban). Verify the rate for your work location.
Pay frequency: Employers must set regular, established paydays (weekly/biweekly/semimonthly common) and pay on time; final-pay deadlines apply at separation.
Breaks/meals: Rest/meal period rules are stricter than federal in many cases; industry variations apply.

Additional Oregon forms

OR-W-4 — Oregon Employee’s Withholding Statement.
Statewide Transit Tax reporting — Employer withholding and returns for 0.1% transit tax.
UI Employer Registration & Rate Notice — Oregon Employment Department account setup and rate assignment.
Metro/Multnomah personal tax withholding — Optional employer withholding setups where applicable; employees file annual returns.
New Hire Reporting — Report hires/rehires within required timeframe.
Required posters — Wage/hour, sick time, unemployment, safety, and federal postings.

FAQs — Oregon Salary Paycheck Calculator

How do I use an Oregon Salary Paycheck Calculator to estimate net pay?

Enter gross pay and pay frequency, your federal W-4 and OR-W-4 elections, plus any pre-/post-tax deductions. The calculator applies FICA, federal withholding, Oregon state withholding, the 0.1% Statewide Transit Tax, and any supported local withholdings to estimate per-pay and annual take-home.

Why is 0.1% Statewide Transit Tax on my check?

Oregon requires a 0.1% Statewide Transit Tax on wages earned in the state. It is separate from state income tax and appears as its own withholding line.

Do Portland-area personal income taxes come out of payroll automatically?

Sometimes. Some employers support withholding for Metro and Multnomah County personal income taxes, but many employees make quarterly/annual payments. The calculator can model the amounts even if not withheld.

Do Oregon employees pay unemployment insurance from wages?

No. Oregon UI is paid by employers. There is no employee UI deduction line on Oregon pay stubs.

Which form controls my Oregon state withholding?

OR-W-4. Use it to set filing status, dependents, and any extra state amount. Update after life events or when you have multiple jobs.

What salary makes me exempt from overtime in Oregon?

Oregon generally follows federal FLSA white-collar rules. Exempt status requires meeting the current federal salary threshold and applicable duties tests. Daily OT may still apply to certain industries if non-exempt.

How are bonuses and commissions taxed in Oregon?

They’re subject to federal supplemental methods, FICA, Oregon state withholding, and the 0.1% transit tax. Enter bonuses as supplemental pay to apply the correct withholding rules.

Can I add an extra amount of Oregon withholding each paycheck?

Yes. Request a flat extra on OR-W-4. Add the same extra in the calculator to preview your net pay and year-end balance impact.

How do pre-tax benefits (401(k), HSA, FSA) affect Oregon and local taxes?

Pre-tax benefits reduce federal and Oregon taxable wages, and may lower local taxable income depending on the program. They also can reduce FICA in some cases.

Are Roth 401(k) contributions pre-tax?

No. Roth contributions are after-tax and do not reduce payroll taxable wages. Enter them as post-tax deductions in the calculator.

What if I live outside Oregon but work in Oregon?

Wages sourced to Oregon are generally subject to Oregon withholding and the 0.1% transit tax. Your resident state may allow a credit for Oregon tax paid.

Why did my net change mid-year?

Crossing the Social Security wage base, benefit changes, supplemental pay, or updated W-4/OR-W-4 settings can shift withholdings. Enter YTD data so Social Security stops at the cap while Medicare continues.

How are tips handled in Oregon payroll?

Reported tips are taxable for FIT, FICA, Oregon withholding, and the 0.1% transit tax. Include tips to avoid under-withholding.

Does Additional Medicare tax apply in Oregon?

Yes—federally. Employees pay an extra 0.9% on wages above $200,000 (no employer match). The calculator adds it automatically when applicable.

Can student employees be exempt from FICA?

Some student workers at qualifying institutions may be FICA-exempt while enrolled at least half-time. If exempt, remove FICA lines for that job in your estimate.

How do I model overtime and shift differentials?

Add overtime hours and premiums; the calculator recomputes FIT, FICA, Oregon withholding, and transit tax for the period. Manufacturing daily OT rules may require detailed hour entry.

What pay frequency should I select?

Use your employer’s schedule (weekly, biweekly, semimonthly, monthly). The tool prorates wages and withholding per period and annualizes statutory caps like Social Security.

How are PTO payouts taxed?

PTO cash-outs are taxable wages subject to FIT, FICA, Oregon withholding, and the transit tax. If paid separately, employers may use supplemental methods; model as supplemental wages.

Can I claim exempt from Oregon withholding?

Only if you meet Oregon criteria (e.g., no Oregon tax liability last year and none expected this year). Otherwise use standard OR-W-4 elections or add a specific extra amount.

Are charitable payroll deductions pre-tax?

Typically no; they are post-tax and don’t reduce payroll taxable wages. Any deduction benefits are claimed on your income tax return if you itemize.

How do garnishments affect my paycheck?

Enter court-ordered amounts as post-tax deductions. The calculator subtracts them after taxes. Statutory limits and employer timelines apply.

How can I avoid a large balance due at year-end?

Increase per-paycheck withholding (federal, Oregon, and any supported local) via extra amounts, adjust pre-tax benefits, or make estimated payments. Use the calculator to preview effects first.

Can I compare traditional vs. Roth 401(k) effects on take-home?

Yes—run traditional (pre-tax) and Roth (post-tax) scenarios to see immediate take-home differences and long-term implications.

How do I model a mid-year raise or promotion?

Run two scenarios—old rate for paid periods and new rate for remaining periods—then combine to project full-year taxes and net pay.

Oregon Salary Paycheck Calculator