Financial planning in Oregon
Rates to 9.9%, no sales tax, an estate tax from $1 million, and up to 4% more in Portland.
Direct answer
Oregon taxes income in four brackets from 4.75% to 9.9%, with the top rate starting at $125,000 for a single filer and $250,000 on a joint return, and has no sales tax. Social Security is not taxed; pensions, IRA withdrawals and PERS income are. The estate tax starts at $1,000,000, unindexed, at 10% to 16% on the excess. Portland households pay two local income taxes on top: Metro's 1% supportive housing tax and Multnomah County's Preschool for All tax of 1.5% rising to 3%, both on Oregon taxable income, for a combined top marginal rate of 13.9%. For a Portland household the conversion decision and the estate plan both carry more state weight than almost anywhere else in the country.
Oregon tax treatment
Figures are for tax year 2025, each read from the source beside it. Thresholds and rates are revised regularly; confirm the current year before acting on any of them. What these rules change in a household’s plan, from the order accounts are drawn to the timing of Roth conversions, is set out in the retirement tax planning overview.
On the Department of Revenue's 2025 rate chart, joint filers pay 4.75% up to $8,800, 6.75% to $22,200, 8.75% to $250,000 and 9.9% above; single filers reach 9.9% above $125,000. The 9.9% thresholds have stayed at $125,000 and $250,000 while the lower brackets are indexed. Oregon has no general sales tax.
Oregon does not tax Social Security or Railroad Retirement Board benefits. Other retirement income, including private and public pensions, PERS, and IRA and 401(k) distributions, stays in Oregon taxable income; a retirement income credit exists for older taxpayers with low household income, and federal pension income attributable to service before October 1, 1991 is subtracted.
An Oregon estate transfer tax return is required when the total value of the estate is $1 million or more, and the tax runs from 10% to 16% on value above the first $1 million. The threshold has not changed since 2012. Farm, forest and commercial fishing property may qualify for the natural resource exemption for deaths on or after July 1, 2023.
Worth doing here
Things that are worth doing in Oregon that would not be worth doing, or would work differently, somewhere else.
Metro's Supportive Housing Services tax is 1% on taxable income above $125,000 single or $200,000 joint ($128,000 and $205,000 from 2026), and Multnomah County's Preschool for All tax is 1.5% above the same thresholds plus another 1.5% above $250,000 or $400,000. Both use Oregon taxable income, so IRA withdrawals, conversions and gains count while Social Security does not. A scheduled 0.8-point increase in the county tax has been under review; the current schedule is on the Revenue Division's page.
A Portland home plus retirement accounts can owe Oregon estate tax at 10% to 16% on the excess over $1 million when no federal tax is due, which puts titling, beneficiary designations and credit-shelter planning for couples on the table early. Owners of farm, forest or fishing property should ask about the ORS 118.145 exemption.
Contributions to an Oregon College Savings Plan or Oregon ABLE account earn a refundable credit of up to $180 ($360 joint) for 2025 and $190 ($380) for 2026, with the qualifying percentage scaled to income.
Federal and state, together
Oregon income tax alone exceeds the federal deduction cap for many households, and above $500,000 of modified adjusted gross income the cap shrinks toward $10,000; most of what a high-earning Portland household pays the state, Metro and the county is not deductible federally, which makes managing the state layer directly worth more here than in most states.
The federal deduction for state and local taxes is $40,400 for tax year 2026 and begins to shrink above $500,000 of modified adjusted gross income, down to a floor of $10,000, and is scheduled to return to $10,000 after 2029. The federal estate tax exclusion is $15,000,000 per person for deaths in 2026. IRS, Instructions for Schedule A (2025), line 5e; IRS, tax year 2026 inflation adjustments (Rev. Proc. 2025-32).
Cities
Each city page covers what is local — how households there tend to be paid, what the first meeting usually covers — and inherits this state layer.
Portland is paid by Nike in Beaverton and Columbia Sportswear, by Intel's Oregon campuses in Hillsboro (the company's largest site), by Oregon Health & Science University and Providence, by Daimler Truck North America's headquarters, and by a large professional and creative sector.
Watch and learn
Start with three videos selected for this page, then use the controls to explore every published Flames FP video guide.
Videos 1–3 of 14
Common questions
No. Social Security and Railroad Retirement Board benefits are not taxed by Oregon.
An estate of $1,000,000 or more must file, and the tax runs from 10% to 16% on value above the first $1 million. The threshold is not indexed and has not changed since 2012.
Two, on top of the state tax: Metro's 1% Supportive Housing Services tax above $125,000 single or $200,000 joint ($128,000 and $205,000 from 2026), and Multnomah County's Preschool for All tax of 1.5% above the same thresholds and 3% above $250,000 or $400,000. Both apply to Oregon taxable income, including retirement withdrawals and gains.
No. Flames Financial Planning is based in Minnetonka, Minnesota, and serves Oregon households through a virtual planning relationship. This page describes the service area and does not claim a Oregon office.
Yes. State tax treatment shapes withdrawal order, Roth-conversion timing, and where investments are best held. Planning includes tax guidance and review of a completed return; Premier adds tax projections and preparation and filing through an independent tax partner.
Next step
A discovery meeting covers your situation, what you pay now, and whether a fixed quarterly membership is a better fit.
