The 2020 interest rate is seven percent (7%) per year or .583 percent per month. The 2021 interest rate is five percent (5%) per year or .417 percent per month. The 2022 interest rate is five percent (5%) per year or .417 percent per month. The 2023 interest rate is seven percent (7%) per year or .583 percent per month. While Oregon does not have a general sales tax, it does tax the sale of alcohol.

• Find out about your state taxes—property taxes, tax rates and brackets, common forms, and much more.
• That top marginal rate is one of the highest rates in the country.
• PORTLAND Ore. (KPTV) – While many Oregonians love to complain about the amount of taxes they are paying, are the taxes in Oregon actually some of the highest?
• Here’s a look at the 10 states where people earning $75,000 owe the most in state income taxes, based on Tax Foundation calculations.
• W-2s are submitted separately from the Annual Withholding Reconciliation returns and must be submitted electronically through Portland Revenue Online (PRO) in EFW2 format.

If you need assistance with the preparation of your return, visit the Taxpayer Assistance page. Specifically, you’re allowed to deduct an amount that’s equal to the amount of income that you reported in gambling winnings for the current tax year. In this case, you can deduct any claim right of income repayments over $3,000.

America’s Progressive Tax and Transfer System: Federal, State, and Local Tax and Transfer Distributions

The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest.

• If you’re an Oregon resident and you purchase a new vehicle from a seller outside of the state, you may be exempt from paying the other state’s sales tax.
• California has graduated-rate income taxes ranging from 1% to 13.3% on income over $1 million.
• Tax collections are managed primarily by the 36 counties in Oregon, which assess property and calculate taxes owed.
• In New Hampshire, only interest and dividends are taxed, whereas Washington solely taxes capital gains.

When calculating personal income taxes, Oregon relies heavily on the federal income tax structure. Oregon taxable income is equal to federal taxable income, with a limited number of additions and subtractions. The most common additions are for income taxes paid to other states and interest income from the government bonds of other states. The IRS’s Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) programs offer free basic tax return preparation to qualified individuals. Low- to moderate-income taxpayers can also access preparation services through AARP and CASH Oregon. United Way also offers free tax help through their MyFreeTaxes program.

Total Estimated 2022 Tax Burden

If you owe this personal or business tax, get forms and make payments through the City of Portland. If you’re a physician who’s licensed in the state of Oregon and provides care to at least eight residents at an Oregon Veterans Home (OVH), you can qualify for a tax credit that’s  worth up to $5,000. Contributions can be in the form of cash, property, or expenses from any volunteer work. However, a single charitable contribution of more than $250 requires a written statement. You can’t deduct political contributions, dues paid to fraternal organizations or the value of any services or benefits you received in connection with your contributions. Oregon doesn’t have a general sales tax or a transaction tax.

Please remember Oregon city income tax returns are due April 15th or, if it falls on a weekend, the first business day after April 15th. Returns filed late will incur a $25.00 late filing fee, as well as monthly penalty (1 ½%) and interest (1/2%) charges. If credit is taken for tax paid to another city, you must include a copy of that city’s return.

How to recognize an official Oregon website

Please be sure to include the second page of Schedule C showing cost of labor included in cost of goods sold. In Oregon, property tax rates vary because they are determined on a local level. The tax system in the US works on a pay-as-you-go basis, so the IRS collects income taxes throughout the year via payroll.

For tax year 2020, Oregon residents filed about 2.02 million Oregon personal income tax returns, representing about 2.74 million taxpayers, which includes spouses. Those taxpayers paid a final tax after adjustments, deductions and credits on average equal to about 6% to 7% of their total income. The top 10% of taxpayers in income paid roughly half of Oregon’s personal income tax, while the bottom half of taxpayers in income paid 9% of the total income https://www.bookstime.com/ tax. We ask that you utilize your client’s pre-printed returns as it makes processing more accurate and efficient. If you use a generic return, please make sure the filing year of the return, taxpayers’ names, social security numbers or alternate ID’s, phone number, address changes and dates moved in or out are on the return. Returns for part-year residents require pay stubs with year-to-date figures or a statement from your payroll department.

Withholding Return Filing Requirements

Or, when done editing or signing, create a free DocuClix account – click the green Sign Up button – and store your PDF files securely. Or, click the blue Download/Share oregon income tax rate button to either download or share the PDF via DocuX. The interest rate is the Federal short-term rate, rounded to the nearest whole number percent, plus five percent.

The tax rates do not apply to actual income, but the adjusted gross income or the income after all applicable deductions and exemptions have been subtracted. The top tax rate of 9.9% applies to any taxpayer making more than $71,280 for single filers and $142,560 for married couples filing jointly. Effective January 1, 2021, two new Oregon local income taxes apply, the Portland Metro Supportive Housing Services Income Tax and the Multnomah County Preschool for All Income Tax. Beginning April 2021, employers are able to remit withholding tax payments and file returns for these new local taxes through the Portland Revenue Division. Average tax rate is the effective tax rate that you incur on your income.

Oregon Tax Rates, Collections, and Burdens

View how much tax you may pay in other states based on the filing status and state entered above. These thresholds are subject to change, so please consult a professional with tax expertise regarding your individual situation. To view the updated tax formula, go to the HR and Payroll Clients page from the MyNFC drop-down menu on the National Finance Center (NFC) Home page. Income Tax Formulas from the Publications menu to launch the tax map.

If the deadline to file cannot be met, an automatic extension will be granted if the taxpayer received an extension on his/her federal return. An extension of time to file is not an extension of time to pay. Payment of any estimated tax due should be sent in by the original due date of the return to avoid a late payment penalty. Although not required by state law, a courtesy copy of the extension by the due date of the return would be appreciated. A copy of the extension must be attached to the return when filed or the return will be considered late and a late filing penalty will be applied.

The corporate excise and income tax is the second largest source of state tax revenue. The corporate tax rates are 6.6% and 7.6% of taxable business income. For tax year 2019, about 1% of corporate taxpayers accounted for 56% of income and excise tax revenue from C corporations (standard corporations).

• When you prepare a federal return with eTax.com, we make it quick and easy to complete your Oregon state tax return.
• The personal income tax is the largest source of state tax revenue, expected to account for 86% of the state’s General Fund for the 2021–2023 biennium.
• Taxes pay to educate our children, to care for our seniors, and for many other services that we alone cannot shoulder.
• The first thing to know about the state of Oregon’s tax system is that it includes no sales tax.