Personal Income Tax in Oregon

April 13, 2006

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If you are a resident or nonresident of Oregon and receive taxable income individually from property owned or business transacted in Oregon, you are subject to tax on net income. Therefore, if you are operating your business as an S corporation, partnership, limited liability company, or sole proprietorship, you will be subject to a personal income tax on your business income that passes through to you. In addition, local governments in Oregon are authorized to levy a local income tax, so be sure to check with your local government.

Warning

Certain local governments in Oregon also assess a business income tax. The business income tax applies to any individual, sole proprietorship, partnership, joint venture, association, club, estate, trust, corporation or any other non-governmental entity capable of doing business. Wages earned by an employee are not subject to the business income tax. Make sure you check with your local government to see if you are subject to these local taxes.

The following are the rates in effect for 2006:

Single Individuals and Married Individuals Filing Separately
Taxable Income	Tax Rate
First $2,750	5%
Over $2,750, but not over $6,850	$137.50 plus 7% of excess over $2,750
Over $6,850	$424.50 plus 9% of excess over $6,850

Married Filing Jointly, Head of Household, and Qualifying Widow(er)
Taxable Income	Tax Rate
First $5,500	5%
Over $5,500, but not over $13,700	$275 plus 7% of excess over $5,500
Over $13,700	$849 plus 9% of excess over $13,700