Oregon's Tax Structure

Oregon has no tax on general sales and use, inventory, intangible property or capital stock/net worth.

General Business

General business information from Oregon Department of Revenue.

Gross Receipts Tax

Starting in 2020, any type of business is subject to a Corporate Activity Tax in relation to commercial activity sourced to Oregon, which are gross receipts arising from applicable goods or services delivered to or used by a purchaser in Oregon. Any person or unitary group with more than $750,000 of such gross receipts during the tax year must register with the Department of Revenue.

If those gross receipts exceed $1 million, the tax liability is $250 plus 0.57 percent of taxable commercial activity, which equals gross receipts minus 35 percent of the business's labor costs or input costs, as apportioned to Oregon, whichever is greater. Corporate Activity Tax (CAT) information from Oregon Department of Revenue.

Corporate Excise Tax—Single Sales Factor

The tax on subchapter C corporations doing business in the state is the greater annually of:

  • minimum, ranging from $150 up to $100,000, based on a schedule in relation to Oregon sales (approximating 0.1% of sales), which is not reduced by any income tax credit, or
  • calculated amount equaling 6.6% on income up to $1 million and 7.6% above that, after apportionment and other adjustments.

(The corporate excise tax is in addition to the above gross receipts tax, which is a deductible expense. Computation of this tax generally includes only those affiliates that are also on the consolidated federal tax return and that comprise a unitary business.)

Besides being the basis of the minimum tax, Oregon sales are 100% responsible for apportioning nationwide business income to Oregon in most cases. In its (consolidated) state corporate tax return, the taxpayer takes the ratio of its Oregon sales to total U.S. sales and multiplies that ratio by (consolidated) federal income to arrive at taxable Oregon income. In addition to purchases by Oregon-based customers during the tax year, Oregon sales include tangible goods originating in Oregon that are bought by the U.S. government or by customers where the corporation is not taxable—i.e., it does not have nexus. Intangible sales, such as services, are also assigned according to a market-based approach with respect to buyer location, except that non nexus sales from Oregon are thrown out of the sales factor rather than thrown back into its numerator. (Other state nexus is determined per corporate member with sales from Oregon—the so called Joyce method).

This single interstate factor stands in contrast to states that still also use factors for property and payroll to apportion domestic taxable income to their state. 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.

A corporation that is not doing business in the state but that has Oregon source income (nexus) is not subject to the minimum tax, but it would need to file a Corporate Income Tax return.

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. Income from capital gains is subject to the same rates 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. Otherwise, Oregon connects to the federal tax code for the definition of taxable income from federal tax returns, including for purposes of federal opportunity zones.

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.