To determine your exact tax bracket in Oregon, you need to know your taxable income and your filing status. Oregon operates on a progressive income tax system, meaning different portions of your income are taxed at different rates.
How Oregon's Income Tax Brackets Work
Oregon's income tax system is progressive, which means that as your taxable income increases, higher portions of your income are subject to higher tax rates. This is often referred to as a "marginal tax rate" system. Your income is divided into segments, and each segment is taxed at a specific rate, known as a tax bracket.
For example, if you are in the 8.75% tax bracket, it doesn't mean your entire income is taxed at 8.75%. Instead, only the portion of your income that falls within that specific bracket is taxed at that rate, while lower portions of your income are taxed at the lower rates of previous brackets.
Oregon Income Tax Brackets for 2024
Here are the Oregon income tax brackets for the 2024 tax year:
| Taxable Income (Single Filers) | Taxable Income (Married Filing Jointly) | Tax Rate on This Income |
|---|---|---|
| $0 to $3,750 | $0 to $8,100 | 4.75% |
| $3,750 to $9,450 | $8,100 to $20,400 | 6.75% |
| $9,450 to $125,000 | $20,400 to $250,000 | 8.75% |
| $125,000 or more | $250,000 or more | 9.90% |
Determining Your Tax Bracket
To find out which tax bracket you are in, follow these steps:
- Identify Your Filing Status: The most common filing statuses are Single and Married Filing Jointly. Make sure to use the correct column in the table above that applies to your situation.
- Calculate Your Taxable Income: This is your gross income minus any deductions and exemptions you are eligible for. Your taxable income is the amount that is actually subject to state income tax.
- Locate Your Income Range: Find the range in the table that your taxable income falls into under your respective filing status. The tax rate associated with that range is your highest marginal tax rate.
Example Scenarios:
Let's illustrate with a couple of examples:
- Single Filer Example: Suppose you are a single filer with a taxable income of $45,000.
- Your first $3,750 is taxed at 4.75%.
- The portion between $3,750 and $9,450 is taxed at 6.75%.
- The remaining income above $9,450 (up to $125,000) is taxed at 8.75%.
- Therefore, your highest marginal tax bracket is 8.75%.
- Married Filing Jointly Example: Imagine you are married filing jointly with a combined taxable income of $15,000.
- Your first $8,100 is taxed at 4.75%.
- The income between $8,100 and $20,400 is taxed at 6.75%.
- Since your $15,000 income falls within this second bracket, your highest marginal tax bracket is 6.75%.
Important Considerations
- State Income Tax: The brackets provided above apply specifically to Oregon state income tax and do not include federal income tax or any other local taxes.
- Tax Year: These brackets are for the 2024 tax year. Tax brackets can change annually due to inflation adjustments or legislative changes.
- Not Tax Advice: This information is for general understanding. For personalized tax advice and to accurately calculate your tax liability, it is always recommended to consult with a qualified tax professional.
