Oregon Taxes

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Corporate Income Tax—Single Sales Factor

The tax rate on corporate income of firms doing business in the state is the greater of a minimum tax based on relative Oregon sales ($150-$100,000, approximately 0.1% of sales by entity) or an income-based levy of 6.6% on taxable income up to $1 million and 7.6% above that.

Relative Oregon sales are responsible 100% in determining U.S. corporate income taxable in Oregon. This single interstate factor stands in contrast to states that also use factors for property and payroll to apportion taxable income. It is advantageous to a business headquartered or producing tangible goods in Oregon but selling products throughout the country, or the world, where it also operates, because its business Oregon tax liability is proportional only to its Oregon customer base, and that liability does not grow directly as a result of greater investment or employment in Oregon.

How the single sales factor works:

In its Oregon tax return, the business takes the ratio of Oregon sales to total U.S. sales and applies that ratio to its consolidated federal income. The result is Oregon taxable income. Oregon sales are based on where the greater cost of performance occurs for intangible sales. In the case of tangible goods, Oregon sales include the throwback of sales to customers where the entity would not otherwise be taxable.

Corporate tax information and forms from Oregon Department of Revenue.

Personal Income Tax

Personal income tax rates (2015) start at 5%, rising to 7% on single/joint tax returns with taxable income greater than $3,350/$6,700, and then 9% on income greater than $8,400/$16,800, up to $125,000/$250,000. At that point, the marginal rate is 9.9% on income in excess of that level. The same rate applies to capital gains as other personal income. Lower rates can apply to nonpassive income of certain pass-through businesses.

Personal income tax information from Oregon Department of Revenue.

Property Tax

Except for voter-approved bond issuances to cover capital costs, property taxes are constitutionally limited to not more than 1.5 percent of real market value among the several levies for local government, schools and other service districts at a given location. The increase in valuation of property for tax purposes is limited to 3 percent per year.

Tax abatement programs like the Enterprise Zone and Strategic Investment programs are often available to reduce or eliminate property tax liability.

Learn more about Oregon taxes at the Oregon Department of Revenue:

Source: Business Oregon