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OR · payroll profile

Oregon

Everything an out-of-state employer needs before running a Oregon payroll: what to withhold, which form the employee signs, whether reciprocity applies, and who to register with.

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Personal income tax

Graduated to 9.9%

Reciprocal agreements

None

SUI wage base 2026

$56,700

Local income taxes

Yes

Income tax withholding

Imposes wage income tax	Yes
Rate structure	Graduated, top marginal rate 9.9%
Withholding certificate	OR-W-4 Oregon Employee's Withholding Statement and Exemption Certificate
Accepts federal Form W-4	No
Convenience-of-the-employer rule	No
Nonresident withholding threshold	$2,910 of in-state wages Oregon withholding for a nonresident is generally required once Oregon wages equal or exceed the employee's Oregon standard deduction, which varies by filing status and is indexed annually. Tax Foundation reports $2,910 for 2026 (single filer basis). Verify the current figure and filing-status variation in the Oregon Withholding Tax Formulas before relying on it.
Local income taxes	Yes Oregon has multiple employee-withheld local taxes: the Multnomah County Preschool for All personal income tax, the Metro Supportive Housing Services personal income tax, the Eugene Community Safety Payroll Tax, and the statewide transit tax (0.1% of wages). TriMet and Lane Transit District payroll taxes are employer-paid. Oregon also has the state Paid Leave Oregon employee contribution.

Reciprocity

States that exempt Oregon residents

A Oregon resident working in these states files that state's certificate and is taxed only by Oregon.

Arizona District of Columbia

Unemployment insurance and paid leave

Taxable wage base 2026	$56,700 2025 base was $54,300.
New employer rate	2.4% 2026 rates come from Tax Schedule 3; a 0.135% special payroll tax offset applies in all four quarters of 2026.
Experience rate range	0.9% – 5.4%
Experience-rating method	benefit ratio
Employee UI contribution	No
Paid family / medical leave	Yes Paid Leave Oregon's 2026 contribution rate is 1.00% of subject wages up to $184,500. Employees pay 60% (0.60%) and employers with 25 or more employees pay 40% (0.40%); employers with fewer than 25 employees owe no employer share but must still withhold the employee 60%.

Employer registration

Tax agency: Oregon Department of Revenue
UI agency: Oregon Employment Department

Sources

oregon.gov · taxfoundation.org · taxfoundation.org · oui.doleta.gov · oui.doleta.gov · oui.doleta.gov · oregon.gov

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This is a determination aid, not advice. StateSide encodes published state rules and applies them mechanically to the facts you enter. It does not know your entity structure, your nexus history, your equity compensation, or the dozens of exceptions that turn a clean rule into a judgement call. Every determination cites the state source it came from — verify against that source, and take anything consequential to a payroll tax professional before you act on it.