Important Tax Facts:
-The State of Oregon has both Corporate income tax and personal income tax rates with maximum rates of 7.60% and 9.90%, respectively. Oregon is also one of the few states that also has an estate tax & gross margins tax. Read more below.
The state of Oregon does have an individual income tax. Like most states with income tax, it is calculated on a marginal scale, with four (4) tax brackets. They range from 5.00% to 9.90%. The highest bracket of 9.90% starts for income greater than $125,000.
The State of Oregon also imposed Local Income Taxes, however they are paid through payroll taxes. See below under Payroll Taxes.
The state of Oregon also has a Corporate Tax rate with only two (2) tax brackets. Net income under $1 Million is taxed at 6.60%, everything above $1 Million is taxed at 7.60%. The Corporate Tax is only assessed on C Corporation. Other flow-thru entities, such as S-Corps, LLCs and LLPs are not subject to the Corporate Tax, however they are all subject to a minimum $150 excise tax for doing business in the state of Oregon.
In addition to the Corporate Tax and Excise Tax, the State of Oregon also has a Gross Margins Tax referred to as the Corporate Activity Tax (similar to Ohio’s CAT Tax). The CAT Tax is assessed as $250 per entity, plus 0.57% of Gross Receipts over $1 Million. There are certain deductions related to the CAT Tax, learn more about it at the Oregon Department of Revenue website – here.
The average property tax rate for residential property in the state of Oregon is 0.98%, which is in line with other states as property tax as a percent of a taxpayer’s main home.
The state of Oregon does have an estate tax that ranges from 10% to 16% depending on the size of the estate. The first $1 Million dollars of the estate is exempt from tax.
Payroll (Unemployment Insurance) taxes are paid by business on the behalf of their employees to fund unemployment insurance to the state. It consists of multiple factors. Below is an outline of the most common ones in Oregon –
Oregon has an average cost of opening an LLC. Here are some important facts: