For example, taxpayers with AGI between the 10th and 5th percentiles ($178,611 and $261,591) paid an average income tax rate of 14.3 percent—almost five times the rate paid by taxpayers in the bottom half. To file a tax return in Oregon, taxpayers must complete and submit a tax return form. The tax return form requires taxpayers to report their taxable income and any credits or deductions they are eligible to claim. Taxpayers must also calculate their tax liability and pay any taxes owed by the due date. If an Oregon state resident has earned less than $2,215 during the tax year, he or she isn’t required to file a state income tax return.

Oregon Widower Filer Tax Tables

This tax is progressive, which means the tax rate you pay — the percentage of each additional dollar that goes to the government — increases as your income increases. For individuals, the income tax rates on ordinary income (as distinguished from capital gains) start at 10% and increase up to bookkeeping 37% as your income tax bracket increases. Year 2022 shows the US federal income tax system continues to be progressive as high-income taxpayers pay the highest average income tax rates.

• Oregon has a state income tax (4.75% to 9.9%) but no state payroll taxes or local income taxes to worry about.
• Some examples include gambling losses and claim of right income repayments, which is income you paid in error but reported in a previous year.
• Both companies produce multiple editions for simple to very complex tax returns, so be sure to carefully compare the features offered by each package.
• Average tax rates were lower in 2022 than in 2017 across all income groups.

Oregon Income Tax Returns

• Oregon collects a state income tax at a maximum marginal tax rate of %, spread across tax brackets.
• Personal exemptions help reduce your taxable income, leading to a lower tax bill and more money in your pocket.
• Income tax deductions are expenses that can be deducted from your gross pre-tax income.
• The federal standard deduction for a Head of Household Filer in 2024 is $ 21,900.00.
• And child tax creditA tax credit is a provision that reduces a taxpayer’s final tax bill, dollar-for-dollar.
• The Personal Exemption, which is supported by the Oregon income tax, is an additional deduction you can take if you (and not someone else) are primarily responsible for your own living expenses.

Oregon’s maximum marginal income tax rate is the 1st highest in the United States, ranking directly below Oregon’s %. You can learn more about how the Oregon income tax compares to other states’ income taxes by visiting our map of income taxes by state. You can take certain deductions that aren’t mentioned elsewhere on your tax return.

Does Oregon tax gambling winnings?

The Personal Exemption, which is supported by the Oregon income tax, is an additional deduction you can take if you (and not someone Bookstime else) are primarily responsible for your own living expenses. Likewise, you can take an additional dependent exemption for each qualifying dependent (like a child or family member), who you financially support. Qualifying deductions might include an itemized deduction, the Oregon standard deduction, exemptions for dependants, business expenses, etc. Oregon has four marginal tax brackets, ranging from 4.75% (the lowest Oregon tax bracket) to 9.9% (the highest Oregon tax bracket). Each marginal rate only applies to earnings within the applicable marginal tax bracket.

• You can deduct only the amount that’s equal to the gambling winnings you reported for the current tax year.
• Likewise, you can take an additional dependent exemption for each qualifying dependent (like a child or family member), who you financially support.
• The Income tax rates and personal allowances in Oregon are updated annually with new tax tables published for Resident and Non-resident taxpayers.
• Most properties are taxed by a number of districts, such as a city, county, school district, community college, fire district or port.
• Ordinary income refers to the income that you earn from your usual sources, like a paycheck from your job, or profits from your small business.
• Tax brackets for earnings under under $125,000 are indexed for inflation and adjusted yearly, while tax brackets over $125,000 are only changed explicitly by statute.

Check if Direct File is right for you

In 2022, the bottom half of taxpayers earned 11.5 percent of total AGI and paid 3 percent of all oregon income tax federal individual income taxes. The top 1 percent earned 22.4 percent of total AGI and paid 40.4 percent of all federal income taxes. Oregon was one of the first Western states to adopt a state income tax, enacting its current tax in 1930. It consists of four income tax brackets, with rates increasing from 4.75% to a top rate of 9.9%. Only a small subset of taxpayers actually pays that rate, however, as it applies only to single taxpayers making at least $125,000 a year ($250,000 for joint filers).