Form OR-40-P filers will need to multiply the tax by their Oregon percentage on their return. For the 2023 tax year, Oregon’s standard deduction allows taxpayers to reduce their taxable income by $2,605 for single filers, $5,210 for married people filing jointly, $4,195 for heads of household and $5,210 for qualifying widow(er)s. Although there is a late penalty for both failing to file a personal tax return and failing to pay the total tax liability by the original due date of the return, only one of these penalties will be applied if there is a failure https://www.bookstime.com/ of both requirements. For tax year 2020, taxpayers making estimated quarterly payments can continue to avoid being assessed quarterly interest by paying 100% of the prior year’s BIT liability. Taxpayers may also avoid quarterly interest by paying 90% of the total current tax year’s BIT liability by the original due date for that BIT return. If a taxpayer would have met the 90% threshold under the prior year’s rate (1.45%) for tax year 2020, but does not meet the 90% threshold under the new BIT rate (2.00%), quarterly interest will be waived.

Overview of Oregon Taxes

Each Portland resident age 18 and older that earns income above the federal poverty level and has $1,000 or more income is required to file and pay the Arts Tax. Visit our Arts Tax page for more information about the filing and payment requirements. The Preschool for All program is funded by a personal income tax, which went into effect January 1, 2021. The City of Portland Revenue Division administers the tax on behalf of Metro. Individuals who are liable for the tax must file a separate Metro SHS personal tax return and pay the tax to the City of Portland Revenue Division to be in compliance with the tax law. The interest on underpayment of estimated taxes was not due for tax year 2021 (the first year of the programs) or tax year 2022 (due to the amnesty program offered for that year).

Metro: Deep in Debt and Getting Deeper

If you’re a single filer with a federal AGI no higher than $75,000 (or $150,000 for a married couple filing jointly), you can claim a standard credit of up to $50 (or up to $100 for married people filing jointly). You can deduct only the amount that’s equal to the gambling winnings you reported for the current tax year. In this case, you can deduct any claim right of income repayments over $3,000.

Personal income tax calculator

The general fund receives nine times more from personal income taxes than from taxes on company profits. When calculating personal income taxes, Oregon relies heavily on the federal income tax structure. Oregon taxable income is equal to federal taxable income, with a limited number of additions and subtractions. The most common additions are for income taxes paid to other states and interest income from the government bonds of other states.

Oregon Single Filer Standard Deduction

The program is funded, in part, by a business income tax on net income for businesses with gross receipts above $5 million that operate in Metro’s jurisdiction. Oregon’s high income taxes are partially due to the fact that Oregon has no state sales tax. 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. To help offset high state income taxes, Oregon taxpayers can deduct up to $6,100 of Federal income tax from their Oregon taxable income. The payment for your businesses taxes is due at the same time you file and pay your federal and state taxes (generally April 15 for most filers).

Revenue is distributed within the portions of Clackamas, Multnomah and Washington counties that are inside Metro’s district. The personal income tax rate is 1.5% on taxable income over $125,000 for individuals and $200,000 for joint filers, and an additional 1.5% on taxable income over $250,000 for individuals and $400,000 for joint filers. ​In most cases, you must make estimated tax payments if you expect your tax after credits and withholding will be $1,000 or more, before you subtract any prior year refund you applied to your current year’s tax.

• For all of the tax forms we provide, visit our Oregon tax forms library or the ‘s tax forms page.
• Failure to pay the business taxes by the original due date will result in late payment penalties and interest.
• 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.
• After filing their first return, taxpayers receive a new tax account welcome letter from the City of Portland Revenue Division with information about quarterly estimated payments that may be applicable to them in subsequent tax years.
• Taxfilers must file their business tax returns and pay their business tax liability at the same time they file their federal and state income tax returns (generally, April 15 for calendar year taxfilers).

Quarterly underpayment interest is calculated using the interest rate in effect for each quarter that payments are late or less than the amount due. Electronic filing is only available for select software programs at this time. Check with your software provider to see if it allows the option for electronic filing. If your software does not provide an option for electronic filing, it may be able oregon state income tax to generate a paper return for you to print and submit by mail. The two most popular tax software packages are H&R Block At Home, sold by the H&R Block tax preparation company, and TurboTax Federal & State, sold by the Intuit software company. Both companies produce multiple editions for simple to very complex tax returns, so be sure to carefully compare the features offered by each package.

Paying Your Personal Income Taxes (Quarterly Estimated Payments, Payment Plans)

If you were a non-resident employed by a Multnomah County employer but did not travel into Multnomah County to perform work (for example,  work was done from a home office in a teleworking arrangement), the income received for that work is not taxable. For part-year residents, Multnomah County taxes your income from all sources earned or received while you were a Multnomah County resident. For non-residents, Multnomah County taxes only your income from Multnomah County sources. If you were a part-year resident and also had income from Multnomah County sources while you were a non-resident, Multnomah County  taxes the combined total of your part-year and non-resident income.

Overview: SHS and PFA Personal Income Tax

Tax credits are provided for political contributions, among other things. Refunds for the Metro SHS and Multnomah PFA taxes are generally issued within 8-10 weeks after the return is filed (with all supporting tax pages). Due to high volumes of mail, returns filed in March/April and September/October may require additional time for a refund to be issued. The latest generation of lithium batteries is safe and cost-effective enough to be installed in homes and businesses to store electricity generated by rooftop solar panels.