Bonus Tax Calculator — Oregon (2026)

Percentage method vs aggregate method

Under the percentage method the bonus is separated from regular pay and hit with the flat 22% federal rate (37% above $1 million of supplemental wages in a year). Under the aggregate method the employer combines the bonus with your normal check and withholds at your marginal rate — which can temporarily withhold far more than 22%.

Either way the bonus is ordinary income. If your marginal federal bracket is 24% or higher, the 22% flat withholding leaves you short at filing time; if you are in the 12% bracket, you are over-withheld and get it back as a refund.

The Oregon layer on bonuses

Oregon taxes bonus income at the same progressive brackets as salary — up to 9.90%. A $10,000 bonus therefore carries roughly $990 of Oregon tax at the top rate, on top of federal and FICA.

Oregon has no state sales tax. Portland-area residents pay additional local taxes including Multnomah County 1.5%/3% and Metro 1% (above thresholds).

Reducing the tax on a Portland bonus

Deferring part of the bonus into a 401(k) or HSA cuts federal and Oregon income tax immediately, though FICA still applies. Some employers allow a separate bonus deferral election — ask payroll before the payment date, not after.

Timing matters too: pushing a bonus into January shifts the tax year, useful if this year included unusually high income from tech work or an equity event.

Local and payroll taxes Oregon adds on top

Paid Leave Oregon takes 0.6% of wages, plus a 0.1% statewide transit tax and local transit taxes around Portland. That deduction sits outside the federal and state income tax lines, so build it into your own budget on top of the numbers above.

Oregon has no state sales tax. Portland-area residents pay additional local taxes including Multnomah County 1.5%/3% and Metro 1% (above thresholds).

Bonuses are wages, so every local layer that applies to your regular Oregon paycheck applies to the bonus too — which is why a supplemental payment often nets a smaller share than your salary does.

Working across a state line from Oregon

Oregon holds income-tax reciprocity agreements with Arizona. If you commute between them, your wages are taxed only by your state of residence — file the exemption certificate with your employer so the wrong state is not withheld from every paycheck.

Remote and hybrid work complicates this further: most states tax income where the work is physically performed, so a Portland resident spending part of the year at a client site in Washington may owe a nonresident return there. Keep a day-count log if you split time between states.

The rest of your Oregon tax bill

Oregon charges no general sales tax, homeowners pay an average effective property tax of 0.93% of market value, and the minimum wage in force during 2026 is $15.05 an hour.

No sales tax, which offsets some of the higher income tax burden.

Income tax is only one part of a state's take. Oregon recovers revenue through sales and property tax as well, which is why headline income tax rates alone are a poor guide to how far a salary really goes. Oregon exempts Social Security but fully taxes pensions and IRA withdrawals, with a small retirement income credit.

Oregon vs Washington on the same salary

On a $75,000 salary, a single filer keeps about $55,571 a year in Oregon against roughly $61,593 in Washington — a difference of $6,021, or $502 a month.

Effective combined rates are 25.9% in Oregon and 17.9% in Washington. Set that gap against living costs: index 115 here versus 116 there, with property tax at 0.93% and 0.94% respectively.

Oregon income tax brackets 2026 (single filer)

Frequently Asked Questions

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