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Oregon state income tax

By Brent Chudoba, editor Updated

Oregon has a state income tax. It is graduated, with a top marginal rate of 9.9%. Oregon has a 4-bracket graduated income tax: 4.75%, 6.75%, 8.75%, and 9.9%. For 2026, single/married-filing-separately: 4.75% up to $4,550; 6.75% on $4,550-$11,400; 8.75% on $11,400-$125,000; 9.9% over $125,000. Married filing jointly/head of household/qualifying surviving spouse: 4.75% up to $9,100; 6.75% on $9,100-$22,800; 8.75% on $22,800-$250,000; 9.9% over $250,000. Brackets are adjusted annually for inflation. Capital gains are taxed as ordinary income (no special lower rate).

Does Oregon have a state income tax?

Yes. Oregon taxes individual income on a graduated schedule topping out at 9.9%. Oregon has a 4-bracket graduated income tax: 4.75%, 6.75%, 8.75%, and 9.9%. For 2026, single/married-filing-separately: 4.75% up to $4,550; 6.75% on $4,550-$11,400; 8.75% on $11,400-$125,000; 9.9% over $125,000. Married filing jointly/head of household/qualifying surviving spouse: 4.75% up to $9,100; 6.75% on $9,100-$22,800; 8.75% on $22,800-$250,000; 9.9% over $250,000. Brackets are adjusted annually for inflation.

Oregon income tax at a glance (reviewed August 29, 2026)
ItemOregon
State income taxYes, graduated
Top marginal rate9.9%
Capital gainsTaxed as ordinary income, up to 9.9%
State sales tax0%
Avg. property tax rate0.81% of home value
Estate / inheritance taxEstate tax (exemption $1,000,000)

How does Oregon tax capital gains?

Oregon has no separate, lower rate for capital gains. They are taxed as ordinary income at the same rates as your wages, up to 9.9%, on top of federal capital gains tax. See how capital gains tax works in 2026.

What about retirement income in Oregon?

Retirement income is taxed differently from wages in many states. For how Oregon treats Social Security, pensions, and 401(k)/IRA withdrawals, see Oregon retirement taxes.

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