Oregon taxes and cost of living (2026)
Oregon has a graduated income tax from 4.75% to 9.90%. A $100,000 salary is worth about $62,313 a year in national buying power after every tax and Oregon's prices, #45 of 51 (the state average is $70,397). Retiring on $50,000 a year takes about $1.40M, #44 lowest.
- State income tax
- 4.8%–9.90%
- Sales tax (avg. combined)
- 0.00%
- Property tax (effective)
- 0.78%
- Cost of living
- 103.4
- US = 100
- Social Security taxed?
- No
- Median home
- $498K
Take-home pay in Oregon
Single filer, 10% of salary to a pre-tax 401(k), standard deduction, renting. All taxes include estimated sales tax.
| Salary | Federal | FICA | State + local | All-in tax rate | Take-home | In US dollars |
|---|---|---|---|---|---|---|
| $50,000 | $3,220 | $3,825 | $3,169 | 20.4% | $34,786 | $33,655 |
| $75,000 | $6,020 | $5,738 | $5,068 | 22.4% | $50,675 | $49,027 |
| $100,000 | $10,970 | $7,650 | $6,973 | 25.6% | $64,407 | $62,313 |
| $150,000 | $21,134 | $11,475 | $11,937 | 29.7% | $90,454 | $87,512 |
| $250,000 | $43,304 | $15,514 | $21,587 | 32.2% | $144,595 | $139,893 |
What it takes to retire in Oregon
Married couple, age 60, withdrawals 60% from 401(k)/IRA, 20% Roth, 20% brokerage, no Social Security yet, renting. Spending at US-average prices.
| Spending | At OR prices | Income taxes | All taxes | FI number |
|---|---|---|---|---|
| $40,000 | $41,344 | $915 | $915 | $1.06M |
| $60,000 | $62,017 | $2,921 | $2,921 | $1.62M |
| $80,000 | $82,689 | $5,634 | $5,634 | $2.21M |
| $120,000 | $124,033 | $11,562 | $11,562 | $3.39M |
Oregon tax rules at a glance
- Income tax: Oregon has a graduated income tax from 4.75% to 9.90%. Federal income tax subtraction capped at $8,750 for 2026 ($4,375 MFS), phased out between AGI $125k-$145k single / $250k-$290k MFJ. Exemption credit $263 per person (2026 withholding formulas; $256 in 2025), not allowed if federal AGI > $100,000 single / $200,000 MFJ. Top bracket thresholds ($125k/$250k) are not indexed. Figures from DOR 2026 withholding formulas (150-206-436); 2026 OR-40 rate charts not yet published. Kicker credit is refundable in some years.
- Payroll: Paid Leave Oregon (0.6% up to $184,500) + statewide transit tax (0.1%): 0.60% of wages up to $184,500.
- Local income tax: Portland area only, high earners: Metro Supportive Housing Services tax 1% of taxable income over $125,000 single / $200,000 MFJ (thresholds indexed from 2026); Multnomah County Preschool for All tax 1.5% over $125,000 / $200,000 plus additional 1.5% over $250,000 / $400,000 (scheduled rate increase delayed to 2027). Portland Arts Tax $35 per adult. None elsewhere.
- Social Security: Not taxed. Fully exempt.
- Retirement income: No exclusion. Retirement income credit for 62+ (9% of taxable pension/IRA income, income-limited, effectively low-income only). Federal pensions for service before Oct 1991 partly subtractable.
- Capital gains: Taxed as ordinary income.
- Sales tax: 0.00% state rate, 0.00% average with local taxes; groceries exempt.
Compare Oregon with
Frequently asked questions
Does Oregon have a state income tax?
Oregon has a graduated income tax from 4.75% to 9.90%. Federal income tax subtraction capped at $8,750 for 2026 ($4,375 MFS), phased out between AGI $125k-$145k single / $250k-$290k MFJ. Exemption credit $263 per person (2026 withholding formulas; $256 in 2025), not allowed if federal AGI > $100,000 single / $200,000 MFJ. Top bracket thresholds ($125k/$250k) are not indexed. Figures from DOR 2026 withholding formulas (150-206-436); 2026 OR-40 rate charts not yet published. Kicker credit is refundable in some years.
How much is $100,000 after taxes in Oregon?
A single filer earning $100,000 who puts $10,000 in a 401(k) takes home about $64,407 after federal, state and local income taxes and payroll taxes, an all-in effective rate of 25.6% including estimated sales tax.
Does Oregon tax Social Security?
No. Oregon does not tax Social Security benefits. Fully exempt.
How much do you need to retire in Oregon?
To spend $50,000 a year (at US-average prices) with withdrawals mostly from a 401(k)/IRA, you'd need about $1.40M in Oregon using the 4% rule, after its cost of living and taxes.
Is Oregon expensive to live in?
Oregon's cost of living index is 103.4, where the US average is 100 (BEA Regional Price Parities, 2024). The median home is worth about $497,500 and median rent is $1,597 a month.
How this is calculated
- Income taxes use 2026 federal and state brackets, standard deductions and personal exemptions or credits. No itemized deductions or other credits. Local income taxes use a typical statewide rate (for example, Maryland's county taxes or New York City's); many places have none.
- Payroll taxes include Social Security (6.2% up to the wage base), Medicare, and employee-paid state programs such as California SDI or Washington's paid leave premium. A married household salary is treated as two equal earners for payroll-tax caps.
- Cost of living uses the Bureau of Economic Analysis's Regional Price Parities (2024), where the US average is 100. Spending you enter at national prices is scaled by each state's index.
- Sales tax is estimated as the average combined state and local rate on about a third of spending (more where groceries are taxed). It is shown for context but not added to costs, because the price parities already include it. Property tax applies the state's effective rate to its median home value (Census ACS 2024) if you own.
- Retirement solves for the withdrawal that covers your spending plus the taxes it triggers, using each state's treatment of Social Security, retirement-account withdrawals and capital gains, then multiplies by 25 (a 4% withdrawal rate).
- Years to FI starts from zero, adds what you save each year in that state, and grows it at a 5% real return until it reaches that state's FI number.
Estimates for comparison, not tax advice. Your actual taxes depend on deductions, credits, where in the state you live and more. Sources: BEA Regional Price Parities, Census ACS, state sales tax rates, IRS, state revenue departments (per state).