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How to Calculate 2023 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 2023 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


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2024 Oregon State Tax Witholding Table
2023 Oregon State Tax Witholding Table
2022 Oregon State Tax Witholding Table
2021 Oregon State Tax Witholding Table
2020 Oregon State Tax Witholding Table
( 2019   2018   2017   2016   2015   )

Tax rate used in calculating Oregon state tax for year 2023

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 2023)<

    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

      $      7,800
         125,000    130,000   6,250
         130,000    135,000   4,700
         135,000    140,000   3,100
         140,000    145,000   1,550
         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

      $      7,800
         250,000    260,000   6,250
         260,000    270,000   4,700
         270,000    280,000   3,100
         280,000    290,000   1,550
         290,000  and over  0


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

      7. If the Employee is:

      		The Standard Deduction is:
      Single claiming less than 3 exemptions
      		>$2,605
      Single claiming 3 or more exemptions
      		$5,210
      Married
      		 $5,210<
    7. 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:

      8. 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

      $   8,100

      $236

      plus

      4.75%

      $      0
         8,100    20,400

      621

      plus

      6.75%

      		  8,100
         20,400  and over

      1,451

      plus

      8.75%

      		 20,400


      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 $       4,050 $   236 plus 4.75% $      0
            4,050       10,200    428 plus 6.75%    4,050

         10,200

      		  and over    844 plus 8.75%    10,200

    8. 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:

      9. 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

      $   36,990

      $0

      plus

      0%

      $      0
         36,990    250,000

      1,215

      plus

      8.75%

      		  36,990
         250,000  and over

      21,305

      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 $       39,565 $   0 plus 0% $      0
            39,565       125,000    608 plus 8.75%    39,565

         125,000

      		  and over    10,653 plus 9.9%    125,000

    9. Multiply the number of exemptions by $219 and subtract from the annual tax calculated above to obtain the annual Oregon tax withholding.
    10. 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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  • How to file tax forms

  • How to enter the paychecks for after the fact payroll