Question 1

What is Oregon's state income tax rate for 2025?

Accepted Answer

Oregon taxes personal income under a 4-bracket progressive structure for tax year 2025: 4.75%, 6.75%, 8.75%, and a top marginal rate of 9.9% at single-filer thresholds of $4,400 / $11,050 / $125,000, imposed by Or. Rev. Stat. §316.037. The 9.9% top rate was added by Measure 66 in 2010; the underlying threshold structure has not been meaningfully changed since 2009 and — critically — is NOT inflation-indexed, producing steady bracket creep. MFJ thresholds double to $8,800 / $22,100 / $250,000.

Question 2

What is Oregon's standard deduction for 2025?

Accepted Answer

Oregon's standard deduction for tax year 2025 is $2,835 for single and married-filing-separately filers, $4,565 for head-of-household, and $5,670 for married-filing-jointly, under Or. Rev. Stat. §316.695. Oregon also allows a personal exemption credit of approximately $249 per taxpayer and dependent (credit, not deduction), which phases out for federal AGI above $100,000 single / $200,000 MFJ per §316.085.

Question 3

Does Oregon tax Social Security and retirement income?

Accepted Answer

Oregon fully exempts Social Security benefits from state income tax under Or. Rev. Stat. §316.054. It provides a retirement income credit of up to 9% of pension income (capped at $6,250 per taxpayer age 62 or older) under §316.157, subject to household income phase-outs. Federal government pensions attributable to service before October 1, 1991 are exempt under §316.680(1)(f) per the U.S. Supreme Court's Davis v. Michigan settlement.

Question 4

Do Oregon cities and counties charge a local income tax?

Accepted Answer

Yes — Oregon is one of the few states where local income tax significantly stacks on the state rate. Multnomah County (Portland) imposes a Preschool for All Personal Income Tax of 1.5% on taxable income above $125,000 single / $200,000 MFJ, rising to 3.0% above $250,000 / $400,000, under Multnomah County Code Ch. 11.500. Metro (the Portland regional government) imposes a Supportive Housing Services Tax of 1.0% at the same thresholds under Metro Code Ch. 7.05. There is also a statewide transit tax of 0.1% on wages under Or. Rev. Stat. §320.550.

Question 5

What is Oregon's kicker refund?

Accepted Answer

The Oregon kicker refund is a constitutionally required credit under Article IX, Section 14 of the Oregon Constitution (added by Ballot Measure 86 in 2000): whenever actual state general-fund revenue for a two-year biennium exceeds the official May forecast by more than 2%, the entire surplus (not just the excess above 2%) must be returned to personal-income-tax filers as a credit on the following year's return. The tax year 2023 biennium kicker distributed $5.61 billion in credits (approximately 44.3% of prior-year Oregon income tax liability) — the largest kicker in Oregon history.

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