Oregon taxes

Oregon taxes personal income at 4.75% to 9.9%, and filers can deduct part of the federal income tax they owe. A sole proprietor owes no separate business tax. An LLC pays a $100 annual report fee. S corporations pay at least $150. C corporations pay 6.6% to 7.6% excise tax, never less than a minimum based on Oregon sales. Oregon also has a separate Corporate Activity Tax on revenue above $1,000,000.

Personal income tax

Oregon residents file Form OR-40. The rates are 4.75%, 6.75%, 8.75%, 9.9%. The top rate of 9.9% starts above $125,000 of taxable income for single and married filing separately filers, and above $250,000 for everyone else. Below $50,000 you read your tax from the printed table.

What sets Oregon apart: you can subtract the federal income tax you owe, up to $8,500 ($4,250 married filing separately). The limit shrinks as income rises. Oregon also has no exemption deduction. Instead it gives an exemption credit of $256 each, taken off the tax itself.

For 2025 Oregon also returns its surplus as the "kicker" credit: 9.863% of your 2024 Oregon tax before credits. It is refundable, and you must file a 2025 return to get it.

Return

Form OR-40

Rates

4.75%, 6.75%, 8.75%, 9.9%

Standard deduction

$2,835 single or married filing separately, $4,560 head of household, $5,670 married filing jointly

Age 65 or blind

Add $1,200 per box single or head of household, $1,000 per box for everyone else

Federal tax subtraction, single

Up to $8,500, and it shrinks from $125,000 of federal AGI and is gone at $145,000

Federal tax subtraction, joint

Up to $8,500, and it shrinks from $250,000 of federal AGI and is gone at $290,000

Exemption credit

$256 each, none above $100,000 of federal AGI single or separate, $200,000 for everyone else

Kicker credit

9.863% of your 2024 Oregon tax, refundable

Oregon Kids Credit

Up to $1,050 for each dependent aged 5 or under, for up to 5, refundable

Not taxed

Social Security and tier 1 Railroad Retirement benefits

Sole proprietor

A sole proprietor with no LLC owes Oregon nothing at the business level. The annual renewal is only for registered entities, so you file none and pay no fee.

Your business profit is taxed on your own Form OR-40. Oregon also has an optional lower rate schedule for qualified business income, starting at 7%, on Schedule OR-PTE-FY. It needs the business to meet Oregon's employee tests, and the choice cannot be undone once made.

Single-member LLC

Every Oregon LLC renews with the Corporation Division each year and pays a $100 annual report fee, whatever it earned. It is due on the anniversary of the original filing.

Oregon mails a renewal notice ahead of time. Watch for official-looking letters from private companies: paying one of those does not renew your LLC. The LLC's profit is taxed on your own Form OR-40.

Partnership

An Oregon partnership files Form OR-65. The profit is taxed on the partners' own returns.

Oregon's Corporate Activity Tax also reaches partnerships and LLCs. It is 0.57% of commercial activity above $1,000,000, charged on revenue rather than profit, so a loss-making year does not remove it. Part of the cost of inputs or labor can be subtracted first.

Oregon makes a pass-through business withhold Oregon tax from owners who live elsewhere, unless the owner joins the composite return or signs an affidavit, Form OR-19-AF. The amount is not worked out here, because it needs each owner's residence and share.

S corporation

An Oregon S corporation files Form OR-20-S. The profit is taxed on the shareholders' own returns.

Every S corporation doing business in Oregon pays the $150 minimum excise tax, even in a year with no profit. Oregon charges the greater of any calculated tax and the minimum, and tax credits cannot reduce the minimum.

Oregon makes a pass-through business withhold Oregon tax from owners who live elsewhere, unless the owner joins the composite return or signs an affidavit, Form OR-19-AF. The amount is not worked out here, because it needs each owner's residence and share.

C corporation

A C corporation files Form OR-20 and pays excise tax of 6.6% on the first $1,000,000 of Oregon income and 7.6% above that. A corporation selling into other states counts only its Oregon share, measured by Oregon sales over total sales.

It never pays less than the minimum tax, which is set by Oregon sales rather than profit. It is $150 under $500,000 of Oregon sales and rises to $100,000 at $100,000,000 and above, so a busy corporation with no profit still owes it. Tax credits cannot reduce it.

The Corporate Activity Tax is a separate tax: 0.57% of commercial activity above $1,000,000, owed on revenue even in a loss year.

Return

Form OR-20

Excise tax

6.6% of the first $1,000,000 of Oregon income, 7.6% above

Minimum tax

$150 to $100,000, set by Oregon sales across 12 bands

Multi-state profit

Oregon sales over total sales

Corporate Activity Tax

0.57% of commercial activity above $1,000,000

Estimate your state tax

Pick your business type and enter this year's numbers to see the state business tax Oregon charges. It assumes all your sales are in Oregon.

An estimate for planning, not tax advice.

Sources

• 2025 Form OR-40 Instructions, Full-year Resident (150-101-040-1)
• 2025 Form OR-40 (150-101-040)
• 2025 Publication OR-17, Oregon Individual Income Tax Guide (150-101-431)
• sos.oregon.gov Annual Report or Renewal, and Business Registry fee schedule
• sos.oregon.gov "Don't Be Misled" (third-party solicitation warning)
• oregon.gov 2025 Form OR-20 Instructions, Appendix B: the rate schedule and the twelve-band minimum tax table
• oregon.gov Corporate Activity Tax: 0.57% of commercial activity above $1,000,000

Last reviewed August 2026.