How Oregon withholding works
The Department of Revenue’s 2026 formulas:
- Base = annual wages − federal income tax withheld (up to $8,750, less for single filers above $125,000 or married above $250,000) − standard deduction ($2,910 single, $5,820 married or single with 3+ allowances).
- Apply the formula for the base – rates of 4.75%, 6.75%, 8.75% and 9.9%.
- Subtract $263 for each OR-W-4 allowance (none for single filers above $100,000 or married above $200,000).
- Divide by the number of paychecks.
Other Oregon payroll deductions
- Statewide transit tax: 0.1% of wages.
- Paid Leave Oregon: employees pay 0.6% of wages up to $184,500.
- Local taxes in the Portland area (Metro supportive housing and Multnomah County preschool taxes) apply to higher incomes and are not included.
Worked example: $60,000 in Oregon
Single, $60,000 salary, paid every two weeks, Oregon
Gross pay is $2,307.69 per paycheck. Federal income tax is $193 and Social Security and Medicare $177. Oregon withholds $153. Take-home pay is $1,769 per paycheck, or $45,996 a year.
Take-home pay per paycheck$1,769.0826 paychecks a year
- Take-home pay per year
- $45,996
- Federal income tax withheld
- $193.08
- Oregon income tax withheld
- $152.834.75%–9.9% brackets
| Item | Per paycheck | Per year |
|---|---|---|
| Gross pay | $2,307.69 | $60,000.00 |
| Federal income tax | −$193.08 | −$5,020.08 |
| Social Security (6.2%) | −$143.08 | −$3,720.08 |
| Medicare (1.45%) | −$33.46 | −$869.96 |
| Oregon income tax | −$152.83 | −$3,973.58 |
| Oregon statewide transit tax (0.1%) | −$2.31 | −$60.06 |
| Paid Leave Oregon (employee 0.6%) | −$13.85 | −$360.10 |
| Take-home pay | $1,769.08 | $45,996.14 |
At $100,000 a year, take-home pay is about $71,333 a year.