Oregon Paycheck Calculator 2026

How Oregon withholding works: federal tax comes off first

Oregon's computer formula starts from a "base wage": annual wages minus the federal income tax withheld minus a standard deduction^[or1]. Oregon caps that subtraction at $8,750 a year in 2026. In this example the full $5,020 of federal withholding comes off before Oregon's rates apply.

• Standard deduction: $2,910 for single and head-of-household employees, $5,820 for married employees and for single employees claiming three or more allowances.
• Exemption credit: each OR-W-4 allowance subtracts $263 from the annual tax, after the rates are applied.
• Wages: pre-tax insurance, Section 125 cafeteria and flexible spending plans, 401(k) and similar retirement plans, and HSAs are not wages for the formula.

The subtraction fades out for higher earners. From $125,000 of single wages (or $250,000 married) the cap steps down by $1,750 for each $5,000 (or $10,000) of extra wages:

Below $50,000 of wages, the cap is simply $8,750. Single employees earning over $100,000 and married employees over $200,000 also lose their allowances in the formula.

Oregon withholding brackets for 2026

The annual tax is a published constant plus a percentage of the base above a breakpoint, minus $263 per allowance. Oregon uses one set of formulas below $50,000 of wages and another from $50,000 up^[or1]. The result is divided by the number of paydays, and employers may round each paycheck to the nearest dollar.

The under-$50,000 constants include an extra $263, which a single allowance cancels out. The DOR's own example shows the method: a single employee with $25,000 of wages, $1,000 of federal withholding and no allowances has a base of $21,090 and annual withholding of $1,789, or $149 a month. This calculator reproduces that figure.

Oregon paycheck calculator settings: Form OR-W-4

Oregon has its own certificate, Form OR-W-4, because after the federal W-4 changes the federal form may not produce the right Oregon withholding^[or1]. Line 1 is the status (single, married, or married but withheld at the higher single rate), line 2 the allowance count and line 3 any extra dollars per check^[or3]. Worksheet A gives one allowance for yourself if nobody can claim you as a dependent, one for a spouse on a joint return and one per dependent. It also says to enter zero for a job paying more than $8,300 a month ($16,600 if married).

On $60,000, one allowance means $3,974 of Oregon withholding for the year; zero allowances raise it to $4,237. Head of household employees use the single column. An employee who gives the employer no withholding statement is withheld at a flat 8% of wages, as are employees whose exemption certificate lapses after February 15^[or1]. Bonuses paid on a separate date may also be withheld at a flat 8%.

Salary calculator Oregon: transit tax, Paid Leave and Portland taxes

Three more payroll deductions appear on most Oregon checks, plus two local taxes for high earners in the Portland area:

The statewide transit tax is one-tenth of 1% of wages, imposed on the wages of Oregon residents and on nonresidents' pay for work done in Oregon^[or4]. Paid Leave Oregon costs 1% of wages up to $184,500 in 2026; employees pay 60% and employers pay the other 40% unless they qualify as small employers^[or5]. The $184,500 limit applies separately with each employer. The Workers' Benefit Fund assessment is 1.8 cents per hour worked in 2026, half deducted from pay^[or2]; the calculator assumes 40 hours a week for it. TriMet and Lane Transit District payroll taxes are paid by employers and do not reduce your check.

Employers with a Metro or Multnomah County location must withhold the Metro Supportive Housing Services and Preschool for All taxes from employees who work there and earn $200,000 or more, unless they opt out. Choose the work location in the calculator to add them^[or6]. For comparison across the border, see the Washington, California or Idaho calculators.

Oregon take-home pay on common salaries

Worked example: $60,000 in Oregon

1. Gross pay: $60,000 a year ÷ 26 paychecks = $2,307.69.
2. Federal income tax: the IRS percentage method annualizes $60,000 of taxable wages, subtracts the $8,600 built into the 2026 tables for a standard W-4, and applies the brackets (top rate 12%): $193.08^[p15t].
3. FICA: 6.2% Social Security $143.08 plus 1.45% Medicare $33.46^[tc751].
4. Oregon: Oregon income tax $152.83, OR statewide transit tax (0.1%) $2.31, Paid Leave Oregon (0.6%) $13.85, OR Workers' Benefit Fund (0.9¢/hour, 40 h/week) $0.72.
5. Net pay: $1,768.37 per paycheck, $45,978 a year (76.6% of gross).

Compare Oregon with nearby states

Same $60,000 salary, different state: Washington $1,906.07 · California $1,838.66 · Idaho $1,848.08 per paycheck. The state tax calculator ranks every state we cover on one salary, and the paycheck calculator switches states in one click. Hourly? Add overtime with the time and a half calculator.