Use our Oregon Paycheck Calculator to quickly figure out how much you’ll take home after taxes. Just enter your salary, pay frequency, and deductions to get a detailed breakdown of your gross pay, taxes, and net pay in seconds.
How Your Oregon Paycheck is Calculated
Your paycheck starts with your gross income and subtracts required taxes and deductions. The basic formula is:
Gross Pay – (Federal Taxes + State Taxes + Local Taxes + FICA) = Net Pay
Here’s what each component means:
- Gross Pay: The total income you earn before any taxes or deductions are taken out.
- Federal Income Tax: Based on your income, filing status, and IRS tax brackets.
- FICA Taxes: This includes Social Security and Medicare taxes, which fund federal programs.
- State Income Tax: Oregon’s progressive state income tax, based on your taxable income.
- Local Taxes: Some cities and counties in Oregon, such as Portland, may impose additional local income taxes.
A Guide to Oregon State Payroll Taxes
Oregon State Income Tax
Oregon has a progressive state income tax system. This means that higher income levels are taxed at higher rates. Below are the 2025 Oregon income tax brackets for single filers.
| Taxable Income Range | Tax Rate |
|---|---|
| Up to $4,050 | 4.75% |
| $4,051 – $10,200 | 6.75% |
| $10,201 – $125,000 | 8.75% |
| Over $125,000 | 9.9% |
For married couples filing jointly, the income thresholds are doubled. Oregon’s standard deduction in 2025 is $2,605 for single filers and $5,210 for joint filers. There are no personal exemptions.
State-Specific Programs and Withholdings
In addition to state income tax, Oregon employees contribute to the Oregon Paid Leave program, which supports paid family and medical leave. For 2025, the contribution rate is 1% of gross wages, split between employers (60%) and employees (40%).
Employees also contribute to the Statewide Transit Tax, which is 0.1% of wages. This tax helps fund public transportation across Oregon.
Unemployment insurance (SUI) is paid entirely by employers, so employees will not see this deduction on their pay stub.
Understanding Federal and FICA Taxes
Federal taxes apply uniformly across all states and include both federal income tax and FICA taxes.
- Social Security tax: 6.2% of wages up to $168,600 in 2025
- Medicare tax: 1.45% of all wages (an additional 0.9% applies to earnings above $200,000 for single filers)
These withholdings fund retirement and healthcare programs for U.S. workers and are mandatory for most employees.
Local Taxes in Oregon
Oregon does not have a general local income tax across all cities. However, certain areas levy specific taxes.
- Portland Metro and Multnomah County: Residents and workers may pay additional local income taxes that fund public services and education.
- Lane Transit District (Eugene area): Employers contribute payroll taxes that support local transit, but this does not directly reduce employee paychecks.
While most Oregonians only pay state and federal taxes, residents in Portland and surrounding areas may notice small additional deductions.
Frequently Asked Questions (FAQs) About Oregon Paychecks
What is the minimum wage in Oregon?
As of 2025, Oregon’s minimum wage varies by region. The standard state minimum wage is $14.20 per hour, while the Portland metro area has a higher rate, and nonurban counties have a slightly lower rate.
How often are paydays in Oregon?
Employers in Oregon must pay employees at least every 35 days. Most employers issue paychecks on a bi-weekly or semi-monthly schedule.
What is the Oregon state tax rate for 2025?
Oregon’s 2025 income tax rates range from 4.75% to 9.9%, depending on your taxable income.
Are 1099 contractors subject to Oregon taxes?
Yes. Independent contractors are responsible for paying both federal and state income taxes, including the full self-employment tax, which covers Social Security and Medicare contributions.
What are the overtime laws in Oregon?
Under Oregon law, nonexempt employees must receive overtime pay at 1.5 times their regular pay rate for hours worked over 40 in a workweek. Certain industries, such as manufacturing and mills, may have additional overtime rules.
Disclaimer
The Oregon Paycheck Calculator provides an estimate based on current tax rates and regulations. Actual results may vary depending on your income, benefits, filing status, and deductions. For personalized tax advice, consult a payroll expert or tax professional.
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