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How to Calculate 2018 Oregon State Income Tax by Using State Income Tax Table

1. Find your income exemptions

2. Find your pretax deductions, including 401K, flexible account contributions ...

3. Find your gross income

4. Check the 2018 Oregon state tax rate and the rules to calculate state income tax

5. Calculate your state income tax step by step

6. If you want to simplify payroll tax calculations, you can download ezPaycheck payroll software, which can calculate federal tax, state tax, Medicare tax, Social Security Tax and other taxes for you automatically. You can try it free for 30 days, with no obligation and no credt card needed.

Learn more about the in house payroll tax solution for Oregon small businesses here.
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Oregon State Tax Tables



How to Add a Paycheck
     How to handle Oregon Payroll
 Important Tax Due Dates>


2018 Oregon State Tax Witholding Table
2017 Oregon State Tax Witholding Table
2016 Oregon State Tax Witholding Table
2015 Oregon State Tax Witholding Table
2014 Oregon State Tax Witholding Table
2013 Oregon State Tax Witholding Table
2012 Oregon State Tax Witholding Table
2011 Oregon State Tax Witholding Table
2010 Oregon State Tax Witholding Table

Tax rate used in calculating Oregon state tax for year 2018

On July 1, 2018, Oregon employers must start withholding the transit tax (one-tenth of 1 percent or .001) from:

  • Wages of Oregon residents (regardless of where the work is performed).
  • Wages of nonresidents who perform services in Oregon.

  • Learn more about How to handle Oregon transit tax here


    State Abbreviation:

    OR

    State Tax Withholding State Code:

    41

    Acceptable Exemption Form:

    W-4

    Basis For Withholding:

    State or Federal Exemptions

    Acceptable Exemption Data:

    S, M, H / Number of Exemptions

    TSP Deferred:

    Yes

    Special Coding:

    None

    Additional Information:

    If a state income tax certificate has not been processed or if a valid state exemption code is not present, the Federal exemption code will be used in the computation of state tax or if an invalid marital status (other than S, M, or H) is present with the number of state exemptions, the highest Oregon withholding rate (Single) with the number of exemptions will be used in the computation of state tax.

    Withholding Formula >(Oregon Effective 2018)<
    1. Subtract the nontaxable biweekly Thrift Savings Plan contribution from the gross biweekly wages.

    2. Subtract the nontaxable biweekly Federal Health Benefits Plan payment(s) (includes dental and vision insurance program, and flexible spending account - health care and dependent care deductions) from the amount computed in step 1.

    3. Add the taxable biweekly fringe benefits (taxable life insurance, etc.) to the amount computed in step 2 to obtain the adjusted gross biweekly wages.

    4. Multiply the adjusted gross biweekly wages times 26 to obtain the gross annual wages.

    5. Subtract the employee’s annualized Federal withholding tax from annualized gross pay to determine annualized taxable wages. The annualized Federal withholding tax to be deducted cannot exceed the maximum amount shown in the following table based on marital status and the annualized gross pay calculated in Step 4.

    6. Tax Withholding Table
      Single (Regardless of the Number of Exemptions)

      If the Amount of Taxable Income Is:

      The Maximum Federal Deduction Amount Is:


      Over:

      But Not
      Over:

      $         50,000

      $   125,000

      $      6,650

         125,000    130,000   5,300
         130,000    135,000   4,000
         135,000    140,000   2,650
         140,000    145,000   1,300
         145,000  and over  0


      Tax Withholding Table
      Married (Regardless of the Number of Exemptions)

      If the Amount of Taxable Income Is:

      The Maximum Federal Deduction Amount Is:


      Over:

      But Not
      Over:

      $         50,000

      $   250,000

      $      6,650

         250,000    260,000   5,300
         260,000    270,000   4,000
         270,000    280,000   2,650
         280,000    290,000   1,300
         290,000  and over  0


    7. Determine the standard deduction allowance by applying the following guideline and subtract this amount from the annual wages.

    8. If the Employee is:

      The Standard Deduction is:
      Single claiming less than 3 exemptions
      >$2,215
      Single claiming 3 or more exemptions
      $4,435
      Married
      $4,435<
    9. If the employee’s annualized gross wages calculated in Step 4 are less than $50,000, calculate the annual tax amount on the adjusted taxable wages using one of the tables below:

    10. Tax Withholding Table
      Married or
      Single (With Three or More Exemptions)

      If the Amount of Taxable Income Is:

      The Amount of Oregon Tax Withholding Should Be:


      Over:

      But Not
      Over:

      Of Excess
      Over:

      $         0

      $   6,900

      $201

      plus

      5%

      $      0

         6,900    17,400

      546

      plus

      7%

        6,900
         17,400  and over

      1,281

      plus

      9%

       17,400


      Single
      (With Less Than Three Exemptions)

      If the Amount of Taxable Income Is:

      The Amount of Oregon Tax Withholding Should Be:


      Over:

      But Not
      Over:

      Of Excess
      Over:

      $        0 $       3,450 $   201 plus 5% $      0
            3,450       8,700    373.5 plus 7%    3,450

         8,700

        and over    741 plus 9%    8,700

    11. If the employee’s annualized gross wages calculated in Step 4 are $50,000 or more, calculate the annual tax amount on the adjusted taxable wages using one of the tables below:

    12. Tax Withholding Table
      Married or
      Single (With Three or More Exemptions)

      If the Amount of Taxable Income Is:

      The Amount of Oregon Tax Withholding Should Be:


      Over:

      But Not
      Over:

      Of Excess
      Over:

      $         0

      $   38,915

      $0

      plus

      0%

      $      0

         38,915    250,000

      1,080

      plus

      9%

        38,915
         250,000  and over

      22,014

      plus

      9.9%

       250,000


      Single
      (With Less Than Three Exemptions)

      If the Amount of Taxable Income Is:

      The Amount of Oregon Tax Withholding Should Be:


      Over:

      But Not
      Over:

      Of Excess
      Over:

      $        0 $       41,135 $   0 plus 0% $      0
            41,135       125,000    540 plus 9%    41,135

         125,000

        and over    11,007 plus 9.9%    125,000

    13. Multiply the number of exemptions by $201 and subtract from the annual tax calculated above to obtain the annual Oregon tax withholding.
    14. Divide the annual Oregon tax withholding by 26 to obtain the biweekly Oregon tax withholding.<
     

    More Payroll Information for Oregon Small Business

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  • Quick Start Guide for New Payroll Software Customers

  • How to start payroll in mid-year

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  • How to handle the local taxes

  • How to handle SDI tax

  • How to add customized deduction and withhold it automatically

  • How to set up payroll tax options for church and non-profits

  • How to handle paychecks for both employees and contractors

  • How to handle pay-by-piece rate

  • How to enter the paychecks for after the fact payroll