Overtime Pay Calculator — Oregon (2026)
Overtime in Oregon starts with the federal FLSA floor: 1.5× your regular rate for every hour beyond 40 in a workweek. Some states add daily overtime or double-time rules on top. This calculator shows gross overtime pay and what survives federal, FICA and Oregon taxation in 2026. Oregon uses a progressive income tax with 4 brackets running from 4.75% up to 9.90%, applied after a state standard deduction of $2,745.
Oregon Overtime Pay Calculator
Your base pay per hour.
Hours beyond 40 in the workweek.
Overtime rules that apply in Oregon
Oregon follows the federal weekly standard: overtime is owed after 40 hours in a workweek, with no general daily overtime requirement.
The "regular rate" is not just your base hourly wage — non-discretionary bonuses, shift differentials and commissions must be folded in before multiplying by 1.5, which raises the true overtime rate for many tech workers around Portland.
Is overtime taxed more in Oregon?
No — overtime is ordinary wages. It can feel over-taxed because per-period withholding tables annualize a big check as if every week looked like that, temporarily withholding at a higher rate that you recover at filing.
The Oregon layer applies to overtime exactly as to base pay, at rates up to 9.90%.
Exempt vs non-exempt in Oregon
Salaried does not mean exempt. To be exempt from overtime a worker must clear both a salary threshold and a duties test; misclassification is one of the most common wage claims filed in Oregon.
Cost of living in Oregon sits 15% above the national average (index 115), median household income is $80,426, and a one-bedroom apartment in Portland rents for roughly $1,600 a month.
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).
Overtime hours carry exactly the same local withholding as regular Oregon hours; the extra pay is taxed at your marginal rates, not at a special penalty rate, even though the deduction line looks bigger.
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)
| Taxable income | Rate |
|---|---|
| $0 – $4,300 | 4.75% |
| $4,300 – $10,750 | 6.75% |
| $10,750 – $125,000 | 8.75% |
| $125,000 and up | 9.90% |