Updated for tax year 2025.
If you live or work in Oregon, you’ll likely need to file an Oregon state income tax return along with your federal return. Oregon uses a progressive income tax structure with four tax rates that depend on your filing status and Oregon taxable income.
This guide explains Oregon’s 2025 income tax rates and brackets, standard deduction, available exemptions and credits, and the updates for the current tax year. When you’re ready to file, TaxAct® automatically applies Oregon’s tax rules to help you accurately prepare your Oregon return alongside your federal return.
What is the Oregon state income tax?
Oregon state income tax is a tax on income earned by individuals. It is collected by the Oregon Department of Revenue (DOR) and helps fund state services.
Oregon uses a progressive income tax structure with four rates for tax year 2025 — 4.75%, 6.75%, 8.75%, and 9.90% — depending on your filing status and Oregon taxable income. Oregon taxable income is generally based on your federal taxable income with Oregon-specific additions, subtractions, and modifications.
Oregon income tax rates and tax brackets
To estimate your Oregon tax bill or refund, it helps to understand the state’s income tax brackets. As one of the first states on the West Coast to adopt a state income tax, Oregon’s income tax rates are among the highest in the nation. Here’s a look at the 2025 tax brackets based on filing status, carried from the live Oregon refund page:
| Tax Rate | Single Filers / Married Filing Separately | Married Filing Jointly / Head of Household / Surviving Spouse |
|---|---|---|
| 4.75% | Up to $4,400 | Up to $8,800 |
| 6.75% | $4,401–$11,100 | $8,801–$22,200 |
| 8.75% | $11,101–$125,000 | $22,201–$250,000 |
| 9.90% | Over $125,000 | Over $250,000 |
If you need more information on how federal tax brackets work, you can use our tax bracket calculator for federal taxes. See Oregon Department of Revenue rate charts and Publication OR-17 for official 2025 rate information.
Oregon standard deduction
Oregon allows a state standard deduction or itemized deductions on your Oregon return. For tax year 2025, Oregon standard deduction amounts are:
| Filing Status | 2025 Standard Deduction |
|---|---|
| Single (claiming less than three allowances) | $2,835 |
| Single (claiming three or more allowances) | $5,670 |
| Married filing jointly | $5,670 |
| Married filing separately | $2,835 |
| Head of household | $4,560 |
| Qualifying surviving spouse | $5,670 |
Taxpayers who are age 65 or older or blind may claim additional standard deduction amounts — generally $1,200 for single filers or $1,000 per qualifying spouse on a joint return. You may claim the Oregon standard deduction or itemize on Schedule OR-A, whichever provides the greater tax benefit. See Publication OR-17 for details.
Oregon exemptions
The state of Oregon does not tax dividends on U.S. government obligations, such as treasury bills, or Social Security benefits.
Taxpayers in Oregon can also qualify for a number of tax credits depending on their tax situation. For instance, the Working Family Household and Dependent Care Credit is available for filers depending on their household size and income. Oregon taxpayers who are 62 years of age or above can also claim a Retirement Income Credit. See Publication OR-17 and the 2025 Oregon Form OR-40 instructions for other available credits and subtractions.
Oregon tax changes for 2025
For tax year 2025, Oregon continues to use progressive income tax rates with a top marginal rate of 9.90%. Oregon has a rolling tie to changes in the federal definition of federal taxable income, with certain Oregon-specific exceptions noted in Publication OR-17. For other purposes, Oregon generally ties to federal income tax laws as amended and in effect on December 31, 2023.
Other 2025 updates include changes to first-time home buyer savings accounts and a federal tax liability subtraction limit of $8,500 ($4,250 if married filing separately), which may be limited further based on adjusted gross income. See Publication OR-17 for a full list of 2025 tax law changes.
FAQs
The bottom line
Oregon has a progressive state income tax for 2025 with rates from 4.75% to 9.90%, depending on your filing status and Oregon taxable income. Knowing the brackets, 2025 standard deduction amounts, and available credits such as the Working Family Household and Dependent Care Credit can help you estimate what you may owe or get back.
When you’re ready to file, TaxAct can help you prepare your federal and Oregon returns in one place so you can file with confidence.
Already filed your taxes and waiting for your refund? Learn more about where your Oregon state tax refund is.
This article is for informational purposes only and not legal or financial advice.
All TaxAct offers, products and services are subject to applicable terms and conditions.
The OBBB is now also being referred to by lawmakers as the Working Families Tax Cut Act. You may see one or both names used here, but they refer to the same set of tax changes.
Citations
Oregon Department of Revenue. “Personal Income Tax.” Accessed 13 Aug. 2026.
Oregon Department of Revenue. “Publication OR-17, Oregon Individual Income Tax Guide (2025).” Accessed 13 Aug. 2026.
Oregon Department of Revenue. “2025 Tax Rate Charts.” Accessed 13 Aug. 2026.
TaxAct. “Working Families Tax Cuts Act: 2025 Tax Reform Explained.” TaxAct Blog.
TaxAct. “Where Is My Oregon State Tax Refund?” TaxAct Blog, 13 Feb. 2026.