Oregon's Tax Structure

Oregon has no tax on general sales and use, business purchases, inventory, intangible property or capital stock.

General Business

General business information from Oregon Department of Revenue.

Corporate Income Tax—Single Sales Factor

The tax rate on corporate income of firms doing business in the state is the greater of a minimum tax based on relative Oregon sales ($150–$100,000, approximating 0.1% of sales by entity) or an income-based levy of 6.6% on taxable income up to $1 million and 7.6% above that.

Relative Oregon sales are responsible 100% in determining U.S. corporate income taxable in Oregon. This single interstate factor stands in contrast to states that still also use factors for property and payroll to apportion taxable income. It is advantageous to a business headquartered or producing goods or services in Oregon but selling them throughout the country, or the world, where it also operates, because its business tax liability is proportional only to its Oregon customer base, and that liability does not grow directly as a result of greater investment or employment in Oregon.

How the single sales factor works:
In its Oregon tax return, the business takes the ratio of Oregon sales to total U.S. sales and applies that ratio to its consolidated federal income. The result is Oregon taxable income. Included are the throwback of sales of tangible goods originating in Oregon that are made to the U.S. Government or to customers where the particular corporate entity would not otherwise be taxable, i.e., has no nexus. Intangible sales are assigned according to a market-based approach and similarly treated, except that extra-nexus sales are thrown out rather than thrown back.

Corporate tax information and forms from Oregon Department of Revenue.

Personal Income Tax

Personal income tax rates (2019) start at 5%, rising to 7% on single/joint tax returns with taxable income greater than $3,550/$7,100, and then 9% on income greater than $8,900/$17,800, up to $125,000/$250,000. At that point, the marginal rate is 9.9% on income in excess of that level. The same rate applies to capital gains as other personal income. Lower rates can apply to the nonpassive income of certain pass-through businesses, for which Oregon is disconnected from the 20% deduction of qualified business income under federal law.

Personal income tax and payroll-withholding information from Oregon Department of Revenue.

Property Tax

Except for voter-approved bond issuances to cover capital costs, property taxes are constitutionally limited to not more than 1.5 percent of real market value among the several levies for only local government, schools and other service districts at a given location. The increase in valuation of property for tax purposes is limited to 3 percent per year.

Tax abatement programs like the Enterprise Zone and Strategic Investment programs are often available to reduce or largely eliminate property tax liability for a certain number of years.

Learn more about Oregon taxes at the Oregon Department of Revenue:
Industrial property
Utility property
Property Tax Exemption information and forms.