Oregon Income Tax 2026

Oregon has a graduated income tax for 2026. The standard deduction is $2,910 (single) / $5,820 (married filing jointly). Oregon taxes wage income with a 4-bracket graduated structure (4.75%/6.75%/8.75%/9.9% top rate), verified against Tax Foundation 2026. The two lower bracket thresholds are inflation-indexed annually; the top two thresholds are statutory ($125,000 single / $250,000 MFJ). 2026 standard deductions: $2,910 single / $5,820 MFJ. Instead of a personal exemption deduction, Oregon gives a personal/dependent exemption CREDIT of $256 per exemption ($512 for MFJ), phased out at high income. Oregon allows a deduction for federal income taxes paid, capped (approx $7,250 single, AGI phaseout). LOCAL income taxes apply in the Portland metro area: Multnomah County Preschool for All and Metro Supportive Housing Services (separate from state tax). Social Security benefits are exempt from Oregon income tax. Most other retirement income (pensions, IRA/401k distributions) is fully taxable, with limited retirement-income credit and federal-pension subtraction. No state sales tax. No general rate cuts enacted for 2026.