Oregon residents are able to deduct their some or even all of the amount they paid in federal taxes from their state taxable income. There are four tax rates assessed based on income, and range from 5% to 9.9%. Oregon uses a four bracket system to determine how residents should be taxed.
Single and Married Filing Separately
- 5% rate applied to the first $3,250 of taxable income
- 7% rate applied between $3,251 and $8,150 of taxable income
- 9% rate applied between $8,151 and $125,000 of taxable income
- 9.9% rate applied to all taxable income above $125,001
The rates are exactly the same for taxpayers who file under married filing jointly, qualifying widow(er), or head of household, although the income amounts are doubled. Personal income tax in the state of Oregon is due April 15th, similar to other areas across the United States. If the date is a holiday or weekend, the deadline is extended to the next business day.
Registered domestic partners (RDPs) are legally subject to the tax rules that apply to married couples. Domestic partners can file jointly or separately, but can’t file as a single taxpayer status in Oregon. The state assess taxes to same sex couples who were legally married outside the state’s jurisdiction the same as any other married couple.
Oregon Residents
For tax purposes, an Oregon resident is anyone who thinks of the state as their permanent home, regardless of where they lived during the tax year. You must meet the following conditions to be considered an Oregon resident:
Oregon is your permanent home place
Your financial social and family life is centered in-state
You always intend to come back to Oregon when you are away.
You are considered a full year resident if you’ve temporarily moved out of state, or you moved back to the state after a short term absence. Even if you don’t live in the state, if you spend more than 200 days during the tax year in Oregon or if you are a nonresident alien, you may be classified as a resident taxpayer.
