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Oregon Tax

Oregon State Tax

FULL List to Oregon Tax Forms

Individual Income Tax Forms

Form 40 Individual Income Tax Return Resident

Form 40P Individual Income Tax Return Part Year Resident

Form 40N Individual Income Tax Return Nonresident

Corporate Income Tax Forms

Form 20 Oregon Corporation Excise Tax Return

Form 20-I Oregon Corporation Income Tax Return

Form 20-S Oregon S Corporation Tax Return

Property Tax Forms

Form Industrial Property Return

Form Confidential Personal Property Return

Form Application for Real and Personal Property Tax Exemption

Form Multiple County Property Return Extension

Primary Concerns:

The primary concerns with Oregon and taxation are related to the present economic climate in the country. Faced with massive budget deficits and limited avenues of acquiring tax revenue, due to the state not having a sales tax, the Oregon legislature was forced to implement emergency measures that would help increase tax revenue into the state.

The result has left Oregon with the highest individual tax rate in the country and some of the highest individual income taxes in the country. To Oregon's credit, though they raised taxes, they did so at progressive, rather than regressive, levels and among the highest tax brackets in the state.

What this means is that taxes were raised mainly amongst higher income taxpayers and corporations, who would have to pay more than the average taxpayer to make up the lost revenue.

Taxes were especially regimented with minimum taxes implemented amongst all brackets, which was an about face from Oregon's previously lax corporate tax laws. Before the economic crisis, tax revenue was forced to entirely on property and income taxes, as corporate taxes had a minimum of only $10. This was raised to a flat minimum of $150 at lowest levels, with higher minimums over progressive brackets of corporate income.

Since Oregon is home to many major corporations, food processors, and agricultural concerns, this has so far been beneficial. The taxes are not viewed as largely unfair by the national standard, since they are predicated on fairly stable 6.6 and 7.9% brackets of total corporate income.

The high income taxes on households making well into the six figures is scheduled to be scaled back beginning in 2011, when it is hoped that the present economic difficulties will have subsided.

Income Taxes:

All individuals residing in Oregon full or part time or living out of state but drawing income from within Oregon are required to pay state income tax. Oregon income taxes are staggered into three brackets of 5, 7, and 9 percent and staggered within each bracket.

For a single taxpayer or married taxpayer filing jointly, the first $3,050 of income is taxed at a rate of 5%, and between that and $7,600 is taxed at 7% plus the amount of the previous bracket (which $153). Over $7,600, the excess will be taxed at 9%.

Historically, Oregon taxpayers that were part of recognized domestic partnerships had to file separate returns. After 2008, the tax law was amended to recognize domestic partnerships.

Therefore, persons filing jointly, heads of household, and qualifying surviving spouses are taxed 5% on all income less than $6,100. Between $6,100 and $15,200 the tax is $305 plus 7% over the excess of the base of $6,100. Over $15,200 the tax is $942 plus 9% of the excess over the top.

In light of recent economic difficulties, Oregon implemented special tax rates for individuals making over $125,000 or $250,000 a year. All income over $125,000 for tax years 2010 and 2011 will be taxed at a rate of 10.8%.

For those making over $250,000 a year it will be 11%, which is presently the highest individual income tax rate in the nation. The bracket amounts for married couples double in each case to $250,000 and and $500,000.

After 2011, the rate for income over $125,000 ($250,000 for couples) will drop to 9.9%, and the special rate for over $250,000 ($500,000 for couples) will be eliminated.

Corporate Income Taxes:

Oregon's corporate income taxes have been adjusted upwards to account for economic shortfalls, with increases for corporations being charged being the higher of two options.

Federal mandated C corporations, which are companies that are subjected to double taxation, meaning the company and its owners are taxed, are charged a present rate of 6.6% of all income less than $250,000. Over $250,000 the tax is $16,500 (6.6% of $250,000) plus 7.9% of all excess over $250,000.

The other option is a table of minimum taxes, starting with a minimum tax of $150 for all incomes under $500,000. All income between $500,000 to $1 million must have a minimum of $500.

Between $1 and $2 million must be $1000, and between $2 and $3 million it must be $1,500. Between $3 and $5 million the minimum become $2,000 and between $5 and $7 it doubles to $4,000. Between $7 and $10 million the minimum is $7,500.

Between the $10 and $25 million the minimum is $15,000 between $25 and $50 million it is $30,000 and between $50,000 and $75 million it is $50,000, and between $75 million and $100 million it is $75,000. Over $100 million the amount if $100,000.

S corporations, which are subject to single taxation of their owners only, must pay a minimum of $150 and the tax rates of either 6.6% or 7.9%.

Property Taxes:

Property tax in Oregon is assessed on a county to county basis by a local assessor. All real property in the state is subject to taxation, as are manufactured homes such as trailers, and commercial personal property (property that is used in a business).

All other forms of personal property is exempt from taxation, including motorized vehicles, crops, business inventories, stocks, and bonds.

Personal property totaling less than $14,500 is exempt from any taxation statewide.

Rates differ on a county to county basis, but the average is about $1,000 per capita.

Sales Taxes:

Oregon has no sales tax, one of only a handful of states that do so. Many localities implement their own sales taxes, but there are generally very specialized; they are implemented on such things as prepared meals or hotel lodging.

Oregon does have a statewide cigarette tax of $1.18 per pack.

Tax Forms:

The main Oregon tax form for state income tax is called Form 40, which has many specialized variations, such as Form 40N for nonresidents and Form 40P for part time residents.

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