Oregon Department of Revenue : Oregon Personal Income Tax Statistics : Research : State of Oregon

Most small businesses file on a calendar tax year ending December 31, making the due date April 15. Returns can be submitted electronically through Oregon’s Revenue Online portal. ​You can drop off your tax form and make non-cash payments in person at our main office in Salem or at one of our https://www.bookstime.com/articles/brewery-accounting regional field offices in Bend, Eugene, Gresham, Medford, or Portland. Advertising enables WalletHub to provide you proprietary tools, services, and content at no charge. Advertising does not impact WalletHub’s editorial content including our best picks, reviews, ratings and opinions.

Step 4: Prepare to file and pay your Oregon business taxes

This must be done through the Oregon Revenue Online system on either a monthly, quarterly, or annual basis depending on the amount withheld. Failure to properly withhold or submit withholding taxes can result in penalties and interest charges. Excise taxes can be based on sales volume or quantity of the items sold. He files his original return on extension on May 3 and elects to use the reduced tax rate. The reduced tax rate election will be allowed since it was made on his original return. Property taxes are assessed as a portion of a home’s assessed value.

Federal Married (Joint) Filer Tax Tables

Non-agricultural employment experienced average growth between 2022 and 2023. Oregon added more jobs than 26 other states, and employment increased at the nation’s 25th highest rate. Per-capita personal income in Oregon ranked 22nd nationally in 2022 at $62,767. And taken by itself, the state’s mid-pack position is cause for neither celebration nor despair. The high cost of doing business in Oregon and the state’s heavy regulatory burden limit its appeal for employers. Over time, such unfavorable conditions incentivize businesses in Oregon to shift investment to more competitive states while discouraging businesses in other states from investing here at all.

Is the Oregon corporation minimum tax a required addition on corporation excise tax returns?

A significant regulatory impediment to housing construction and business investment is Oregon’s decades-old land use system, which constrains the supply of residential, commercial and industrial land. Despite receiving above-average funding, Oregon’s schools are delivering decidedly oregon state income tax below-average results. The scores of fourth graders participating in the 2022 National Assessment of Educational Progress were among the nation’s lowest in math and reading. The performance of eighth graders was stronger, but still solidly in the nation’s lower half.

The personal income tax is the largest source of state tax revenue, expected to account for 86% of the state’s General Fund for the 2021–2023 biennium. Oregon’s taxable income is closely connected to federal taxable income. The state personal income tax rates range from 4.75% to 9.9% of taxable income. For tax year 2020, Oregon residents filed about 2.02 million Oregon personal income tax returns, representing about 2.74 million taxpayers, which includes spouses. Those taxpayers paid a final tax after adjustments, deductions and credits on average equal to about 6% to 7% of their total income.

Step 2: Determine your Oregon business’s employment taxes

In the majority of partnerships and sole proprietorships, the business owner receives their share of income from the business directly, and it does not pass through the company. In these cases, Oregon does not impose any income tax on the business, even the minimum excise tax of $150. The business owner pays personal state income tax at ordinary rates based on which of Oregon’s four tax brackets they fall under. The only exception is for LLCs that file partnership tax returns. In this situation, the business is responsible for paying Oregon’s minimum excise tax of $150. LLCs are pass-through entities that can be classified in different ways.

Though the Oregon Competitiveness Book does not contain data more recent than 2022, the U.S. And preliminary data for the most recent month available at this writing, December 2023, indicate that Oregon’s relative position has slipped across the board. For that month, electricity rates for residential customers were the nation’s 15th lowest, a drop of seven places.

• Per-capita personal income in Oregon ranked 22nd nationally in 2022 at $62,767.
• Nonresident shareholders are taxed on their share of modified income from the federal K-1s, multiplied by the S corporation’s apportionment percentage from Schedule OR-AP.
• S corporation income tax filers pay calculated tax (if any), but not minimum tax.
• The 2020 study also notes that the COVID pandemic, which increased the popularity of at-home work, is likely to make high-earners even more mobile and sensitive to tax changes.
• Finally, Oregon’s minimum wage (or wages, as the minimum differs by state region) continues to be among the nation’s highest.
• Oregon also is among the top half of states in the productivity of manufacturing employees, the number of manufacturing workers and the per-capita value of employer investment in machinery and equipment.

These entity types pass their income through to the owners, who then report the income on their personal income tax returns. Responsible small business owners should register and file use tax returns to fulfill their obligations. Failing to pay use tax can result in penalties from the Department of Revenue.

• And in 2022, the percentages of Oregon adults with bachelor’s and advanced degrees were among the nation’s highest as well.
• Population growth is the main reason Oregon’s economy outperforms the typical state, according to the state Office of Economic Analysis, which produces quarterly economic and revenue forecasts.
• Among the things private sector revenue supports are public services and the employees who provide them.
• Partnership B had one employee that worked a total of 1,440 hours during the year in Oregon.
• The full 2024 Oregon Competitiveness Book is available at the bottom of this page.
• The app allows you to easily send custom invoices, accept credit card and bank transfer payments, and manage your clients from an easy-to-use dashboard to make things easier at tax time.

Withholding Tax Compliance and Oregon Revenue Online

The graphic above, based on information contained in the Oregon Competitiveness Book and the U.S. Energy Information Administration, provides two perspectives on Oregon’s energy landscape. One set of data, from 2022, breaks down electricity generation in Oregon by source. And many employers use natural gas and petroleum products as well. The other set of data, from 2021, shows all energy used in Oregon by source.