Oregon Income Taxes for People Moving to Portland

by Kerrie

Oregon has one of the highest state income taxes in the country, with 2026 rates running from 4.75% to 9.9% and most working households paying 8.75% on the bulk of their income. Portland-area residents earning above roughly $128,000 (single) or $205,000 (joint) also owe a 1% Metro tax, and Multnomah County residents above $125,000 or $200,000 owe an additional 1.5% to 3% for Preschool for All. The offset: Oregon has no sales tax.

If you're moving to Portland from Texas, Florida, Nevada or Washington, this is usually the first real sticker shock. Not the house prices. The paycheck.

I get this question from almost every relocating client, usually in the second or third conversation, once the excitement settles and someone opens a tax calculator. And the answers online are a mess: half of them are out of date, and most of them forget that Portland has its own layer of local income taxes on top of the state.

So here's the full picture as of 2026, in plain English. I'll walk through the state brackets, the local taxes that only apply in parts of the metro, how your bill changes depending on which side of a county line you buy on, and what it looks like next to where you're coming from.

One important note before we start: I'm a real estate broker, not a tax professional. This is a starting point for your planning, not tax advice. Before you make a move based on taxes, run your actual numbers with a CPA who knows Oregon.

How Much Is Oregon State Income Tax in 2026?

Oregon income taxes when you relocate

Oregon uses four brackets. The top rate is 9.9%, but the number that matters for most households is 8.75%, because that bracket starts at a very low income and runs all the way to $125,000 for single filers and $250,000 for joint filers.

Here are the 2026 brackets, based on the Oregon Department of Revenue's 2026 estimated tax publication (OR-ESTIMATE):

Rate	Single filers (taxable income)	Married filing jointly (taxable income)
4.75%	$0 to $4,550	$0 to $9,100
6.75%	$4,550 to $11,400	$9,100 to $22,800
8.75%	$11,400 to $125,000	$22,800 to $250,000
9.9%	Over $125,000	Over $250,000

What that means in real dollars

Because the lower brackets are so narrow, almost everyone with a professional salary pays an effective state rate around 8% to 9%. On $85,000 of taxable income, a single filer owes about $7,120 in Oregon tax, an effective rate near 8.4%. A married couple with $150,000 of taxable income owes about $12,490, roughly 8.3%.

Those numbers are before credits and before Oregon's subtraction for federal income tax paid, which is capped ($8,750 for 2026) and phases out as income rises. For many middle-income households, that subtraction trims the bill a bit. For higher earners, it phases away.

A few Oregon quirks worth knowing

Oregon taxes residents on all their income, wherever it's earned. If you're moving here and keeping a remote job with an out-of-state employer, Oregon still taxes that salary once you're a resident.
Oregon's standard deduction is small compared with the federal one, so more of your income is taxable at the state level than you might expect.
Social Security benefits aren't taxed by Oregon, which matters if you're relocating with or near retired parents.
Oregon has a "kicker." When state revenue comes in well above forecast, the surplus is returned to taxpayers as a credit on the next return. It doesn't happen every cycle, and the size varies, so I wouldn't budget around it.

What Local Income Taxes Do Portland Residents Pay?

This is the part most "Oregon tax" articles skip. On top of the state tax, parts of the Portland metro have their own income taxes. Two of them only kick in at higher incomes, so plenty of households never owe them. But if you're a dual-income professional couple, you need to know these exist before you pick a neighborhood.

Metro Supportive Housing Services (SHS) tax: 1%

Voters across greater Portland approved this in 2020 to fund services for people experiencing homelessness. It's a 1% tax on income above a threshold, and it applies inside the Metro regional boundary, which covers most of the urban parts of Multnomah, Washington and Clackamas counties.

Starting in 2026, the thresholds are indexed to inflation. According to the City of Portland Revenue Division, which collects the tax:

Tax year	Single filers	Joint filers
2021-2025	$125,000	$200,000
2026	$128,000	$205,000
2027	$132,000	$211,000

It's marginal, so you only pay on the income above the line. A couple with $240,000 of taxable income in 2026 owes 1% of $35,000, or $350.

Multnomah County Preschool for All (PFA) tax: 1.5% to 3%

Multnomah County voters approved this in 2020 to fund tuition-free preschool. It applies only in Multnomah County, which includes the City of Portland, Gresham, Troutdale and a few others. It does not apply in Washington or Clackamas counties.

The rates, per the City of Portland Revenue Division:

1.5% on Multnomah County taxable income over $125,000 (single) or $200,000 (joint)
An additional 1.5% on income over $250,000 (single) or $400,000 (joint)

Unlike the Metro tax, these thresholds are not currently indexed to inflation. The county has also scheduled a rate increase of 0.8% in 2028, so the cost of living in Multnomah County at higher incomes is set to go up.

Using the same $240,000 couple: 1.5% of $40,000 is $600.

Portland Arts Tax: $35, rising to $50

Every adult City of Portland resident earning more than $1,000 a year owes a flat $35 Arts Tax, with exemptions for households at or below the poverty level. In May 2026, the City Council voted to change it: starting in 2027, it rises to $50, and anyone with taxable income of $20,000 or less ($40,000 for joint filers) will no longer owe it. It's small money, but it's a separate filing, and newcomers forget it constantly.

Statewide transit tax: 0.1%

Every Oregon worker pays a 0.1% statewide transit tax on wages, withheld from your paycheck. A 2025 law would have doubled it to 0.2%, but voters rejected that increase as part of Measure 120 in May 2026, so it stays at 0.1%.

Filing and withholding

The SHS and PFA taxes are filed separately with the City of Portland Revenue Division, not on your Oregon return. Employers in the area must withhold them for employees earning over $200,000, and anyone else can opt in. If you're under that and don't opt in, expect to pay at filing time or through quarterly estimates.

Does Where You Live in the Metro Change Your Taxes?

Yes, and for higher-earning households it can be the difference of a few thousand dollars a year. This is one of the most practical things I walk relocating clients through, because it can change which neighborhoods make sense.

The quick map

Where you live	Oregon state tax	Metro SHS (1%)	Multnomah PFA (1.5%-3%)	Portland Arts Tax
City of Portland (Multnomah County)	Yes	Yes, if inside Metro boundary	Yes	Yes
Gresham, Troutdale (Multnomah County)	Yes	Yes, if inside Metro boundary	Yes	No
Beaverton, Tigard, Hillsboro (Washington County)	Yes	Yes, if inside Metro boundary	No	No
Milwaukie, Lake Oswego, Oregon City (Clackamas County)	Yes	Yes, if inside Metro boundary	No (check Lake Oswego, see below)	No
Vancouver, WA (Clark County)	Only on Oregon-source income	Only on income earned working inside Metro	Only on income earned working inside Multnomah County	No

The SHS and PFA taxes only apply above their income thresholds, so if your household earns below roughly $205,000 (joint), the local layer mostly doesn't change your bill.

Watch the county lines

Portland's metro doesn't sort neatly by city name. Lake Oswego sits mostly in Clackamas County but has portions in Multnomah and Washington counties. Some west-side Portland addresses sit in Washington County. The City of Portland Revenue Division recommends checking a specific address in Portland Maps to confirm the county, and Metro has its own address lookup for the SHS boundary. I do this for clients on any home we're serious about.

The Vancouver question

Vancouver, Washington comes up in almost every relocation conversation because Washington has no state income tax. The catch is where you work. Oregon taxes nonresidents on income earned in Oregon, so if you live in Vancouver and commute to a job in Portland, you still owe Oregon income tax on those wages. And if you work in-person inside the Metro boundary or Multnomah County, the local taxes can apply to that income too once you're above the thresholds.

Where Vancouver genuinely wins on income tax: households where both earners work remotely for employers outside Oregon, or work in Washington. Per the City of Portland Revenue Division, nonresidents who telework from home for a Portland-area employer without traveling into the district don't owe the local taxes on that income.

The tradeoff is that Washington has a sales tax, and Oregon doesn't. I covered the property tax side of this in my Portland vs. Vancouver property taxes post. If you're weighing the two, look at the whole picture, not just the income tax line.

How Do Oregon Taxes Compare to Where You're Moving From?

Here's what four realistic relocating households would owe in Oregon and Portland-area income taxes in 2026, depending on where they buy. These are estimates on taxable income, before credits and Oregon's federal tax subtraction, so treat them as ballpark figures.

Household (2026 taxable income)	Oregon state tax	Plus Metro SHS	Plus Multnomah PFA	Total if living in Portland	Total if living in Beaverton or Tigard
Single nurse, $85,000	~$7,120	$0	$0	~$7,155	~$7,120
Couple, $150,000	~$12,490	$0	$0	~$12,560	~$12,490
Couple, $240,000	~$20,360	$350	$600	~$21,380	~$20,710
Couple, $320,000	~$28,170	$1,150	$1,800	~$31,190	~$29,320

Portland totals include the $35 Arts Tax per adult. Beaverton and Tigard totals assume the home is inside the Metro boundary, which most of both cities are.

Two things jump out. Below about $200,000 of household income, where you live inside the metro barely matters for income tax. Above it, Multnomah County costs more, and the gap widens as income rises. For the $320,000 couple, choosing Tigard over inner Portland saves about $1,870 a year in income tax alone. That's real, but it's not the only number that matters. Commute, schools, property taxes and the house itself usually matter more.

If you're coming from Texas, Florida or Nevada

None of these states has a personal income tax, so Oregon is a straight addition to your tax bill. For the $150,000 couple above, that's roughly $12,500 a year, or about $1,040 a month, that you weren't paying before.

The offset is that Oregon has no sales tax, and depending on where you're coming from, property taxes may land in a similar range or lower. Texas homeowners in particular are often surprised that their Portland-area property tax bill is comparable to or lower than what they paid at home on a similar-priced house. More on that below.

If you're coming from Washington

Same story as Texas on income tax: Washington doesn't tax wages, so Oregon is a new line item. But Washington leans heavily on sales tax, and you'll stop paying that on almost everything the day you move. I relocated from Seattle myself, and the no-sales-tax change shows up faster than you'd think, especially on big purchases like furniture, appliances and a car.

If you're coming from California

This one surprises people. California's top rate is higher than Oregon's, but California's brackets climb more gradually. Oregon hits 8.75% at a much lower income, so many middle-income households coming from California actually pay similar or more in state income tax in Oregon. Higher earners and very high earners often pay less. Run your own numbers before assuming you'll save.

If you're keeping a remote job

Once you're an Oregon resident, Oregon taxes your wages even if your employer is in Texas or New York. Plan for your withholding to change. Some out-of-state employers aren't set up to withhold Oregon tax correctly, so check your first few paychecks after the move.

What Offsets Oregon's Income Tax?

Oregon's income tax is high. That's not up for debate. But your total tax picture depends on three things, and income tax is only one of them.

No sales tax

Oregon is one of only a handful of states with no general sales tax, and Portland doesn't have one either. You'll see it on every receipt, but it adds up most on the big purchases that come with a move: furniture, appliances, electronics, a car. For a family furnishing a new house, it's real money in year one.

How much it offsets depends on how you spend. A household that spends heavily on taxable goods gets more of the income tax back than one that mostly spends on housing, childcare and services.

Property taxes work differently here

Oregon property taxes are calculated on a home's assessed value, not its market value, and the growth in assessed value is generally limited each year by law. In much of the Portland area, especially in older neighborhoods, the assessed value is well below what the home would sell for. That means your property tax bill can be lower relative to the purchase price than you'd expect, particularly if you're coming from a high-property-tax state like Texas.

The flip side: two similar homes on the same street can have very different tax bills, and your bill won't drop just because you paid less for the house. Always look up the actual tax bill on any home before you write an offer. I break this down in more detail in my post on Portland property taxes.

Putting it together

When relocating clients ask me "Will Portland cost us more in taxes?" my honest answer is usually: "Probably, if you're coming from a no-income-tax state, but by less than the income tax alone suggests." The only way to know for your family is to add up all three (income, sales and property tax) for your real income, spending and the home you're actually considering.

My Take for Relocating Families

Can I be direct with you? Taxes are a real part of the Portland decision, but I've never seen them be the deciding factor for a family who otherwise wanted to be here. What I have seen is families get blindsided by them because nobody walked them through it before they signed a lease or wrote an offer.

When my wife and I moved our family here from Seattle, we went from a state that doesn't tax wages to one of the highest income-tax states in the country, and from paying sales tax on everything to paying none. It's easy to fixate on one of those changes and miss the other. You need both in front of you.

Here's what I suggest to every relocating client:

Re-run your budget with Oregon taxes in it before you set a home price range. Your lender's pre-approval doesn't know your take-home pay is about to change. You need to.
If your household earns over about $200,000, look at the county line. Not as the deciding factor, but as one input next to commute, schools and the house itself.
Look up the actual property tax bill on every home you're serious about. In Oregon it can vary a lot between similar houses.
Talk to an Oregon CPA before or right after you move, especially if you're keeping a remote job, selling a home in another state, or have stock compensation.

Why is that important to you? Because the goal isn't to find the lowest-tax zip code. It's to make sure the life you're moving here for still works on paper once all the numbers are in. Based on my experience, the families who plan for this up front settle in faster and with a lot less stress.

Planning a move to Portland?

If you're weighing neighborhoods and want to see how taxes, commute and price stack up for your situation, I'm happy to walk through it with you. [Reach out here]

You can also DM me on Instagram or YouTube at @kdrealestatepdx.

Frequently Asked Questions

What is the Oregon state income tax rate in 2026?

Oregon has four brackets in 2026: 4.75%, 6.75%, 8.75% and 9.9%. The 8.75% bracket covers taxable income from $11,400 to $125,000 for single filers and $22,800 to $250,000 for joint filers, so most working households pay an effective state rate of roughly 8% to 9%.

Does Portland have a city income tax?

Not a general one, but Portland residents can owe up to three local taxes: the Metro Supportive Housing Services tax (1% above $128,000 single or $205,000 joint in 2026), the Multnomah County Preschool for All tax (1.5% above $125,000 or $200,000, plus 1.5% more above $250,000 or $400,000), and the flat Portland Arts Tax ($35, rising to $50 in 2027).

Do you pay the Preschool for All tax in Beaverton or Lake Oswego?

The Preschool for All tax applies only to Multnomah County. Beaverton is in Washington County, so residents don't owe it. Lake Oswego is mostly in Clackamas County but includes some Multnomah County addresses, so check the specific address in Portland Maps.

If I live in Vancouver, WA and work in Portland, do I pay Oregon income tax?

Yes. Oregon taxes nonresidents on income earned in Oregon, so wages from a job you physically do in Portland are taxable in Oregon even if you live in Washington. Vancouver residents who work remotely for non-Oregon employers, or who work in Washington, generally avoid Oregon income tax.

Does Oregon have a sales tax?

No. Oregon has no general sales tax, which partly offsets its high income tax, especially for households making large purchases such as furniture, appliances or vehicles.

Is Oregon more expensive than Texas for taxes?

For most households, yes, because Texas has no income tax. A couple with $150,000 of taxable income would owe roughly $12,500 a year in Oregon state income tax in 2026. Oregon's lack of sales tax and its assessed-value property tax system offset part of that, depending on your spending and the home you buy.

Does Oregon tax remote workers who move from another state?

Yes. Once you're an Oregon resident, Oregon taxes all your income, including wages from an employer based in another state. Check that your employer updates your withholding after the move.