Oregon State Income Tax 2023 - 2024

The Oregon state income tax is a broad-based tax on the personal earnings of individuals, businesses, and trusts. It is a progressive tax with rates that range from 4.75% to 9.9%. The top rate is among the highest in the country, but only a small portion of taxpayers pay it. It applies only to those earning above a threshold of $125,000 for singles and $250,000 for couples filing jointly.The state also imposes a corporate excise tax and a fiduciary income tax on estates and trusts.

The personal income tax is the largest source of revenue for the state. It is projected to make up about 86% of total General Fund revenues in the 2021-2023 biennium. The legislature has the authority to cut personal income taxes, but only by a simple majority vote in the House and Senate. Similarly, the legislature can create tax breaks for the well-off and corporations by passing bills with a majority vote in both houses of the Legislature.

You can track your return using the Department of Revenue’s “Where’s My Refund?” website. The site allows you to enter your refund amount and filing status to see your Oregon state income tax refund. It also offers a search feature for specific returns. The site also enables you to check the status of a business tax return.

Oregon State Income Tax Withholding

Oregon requires employers to withhold a portion of its employee’s wages for state income tax and other payroll taxes. Employees can view their withholding information by visiting their online account on Revenue Online. If they owe tax, they must file and pay by the original or extended due date with a valid extension. Penalties apply for late payment and failure to file.

Oregon State Income Tax Due Dates

Oregon’s tax code is relatively simple, and there are a variety of deductions, subtractions, and credits that can help you save on your taxes. However, filing on time is important to avoid penalties and interest charges. The deadline to file Oregon state income tax returns is April 15 unless it falls on a weekend or holiday. The Department of Revenue offers a filing extension for taxpayers who are unable to meet the deadline.

Oregon State Income Tax Extension

To request an Oregon tax extension, file Form 40-EXT by the original due date of your return. However, you should not use the form to extend your filing deadline if you already have an approved federal extension and you owe zero Oregon tax for the taxable year.

Beginning January 1, 2024, a new 988 Coordinated Crisis Services tax will be added to the existing 911 Emergency Communications tax. The new rate will be 40 cents per subscriber line of telecommunications service, Voice over Internet Protocol (VoIP) service, or device with access to the 988 suicide prevention and behavioral health crisis system.