The average effective property tax rate is just below average, however, ranking 25th in the country. Oregon state tax can’t get any better when it comes to purchasing goods and services. That’s because Oregon is one of the five states with no sales tax. However, income tax rates are higher in the Beaver State than in many other parts of the U.S. Oregon land is considered real property and is subject to state estate tax if your total adjusted taxable estate exceeds the exemption amounts. Land value located in the state can be less than the exemption amount and still be subject to Oregon estate taxes.

Oregon Tax Deductions

Other tax laws or Oregon Department of Revenue rules may apply to your specific situation. Kiplinger is part of Future plc, an international media group and leading digital publisher. For further tax guidance and to ensure you’re not paying more tax than you need to, it’s wise to speak to an expert.

• An election may be made to increase the basis of the land to its fair market value at the time of the decedent’s death.
• Meanwhile, joint filers in the same income bracket can receive up to $360 when contributing at least $1,440.
• Each marginal rate only applies to earnings within the applicable marginal tax bracket.
• Land value located in the state can be less than the exemption amount and still be subject to Oregon estate taxes.
• Additionally, heirs could face big tax bills in Oregon since there is a state estate tax, but estates worth less than $1 million aren’t taxed.

Tax Data Sources:

Oregon has a graduated state individual income tax, with rates ranging from 4.75 percent to 9.9 percent. Oregon has a graduated corporate income tax, with rates ranging from 6.6 percent to 7.6 percent. Oregon has a 0.77 percent effective property tax rate on owner-occupied housing value. Although gross receipts taxes typically do not allow any deductions from gross sales, the CAT provides a 35 percent deduction for either labor costs or the cost of goods sold. Or $107,415, since the Oregon natural resource property is being used against total Oregon taxable estate. The only time the estate would get full credit is if the Oregon and total adjusted gross estate values were equal.

Oregon: Federal Retirement Plan Thresholds in 2024

The state and each county assessor determine the oregon income tax value of property in each county. Measure 5, which was passed in November 1990, restricted non-school taxes on any property to $10 per $1,000 of real market value. It restricted school taxes on any property to $5 per $1,000 of real market value.

Technically, you don’t have just one « tax bracket » – you pay all of the Oregon marginal tax rates from the lowest Bookkeeping for Chiropractors tax bracket to the tax bracket in which you earned your last dollar. For comparison purposes, however, your Oregon tax bracket is the tax bracket in which your last earned dollar in any given tax period falls. Cash used in the farm operation may also qualify for the credit, however, if this cash is used to pay federal or state estate taxes will require recapture. Oregon has a state income tax system, so knowing their tax regulations and requirements is vital, especially if you are a resident or doing business here. The state follows specific guidelines for individual and business tax returns. Therefore, understanding Oregon’s state income tax system is essential to ensure compliance with tax obligations and to avoid any issues.

Enter your taxable income from Form OR-40, line 19. Do not use periods or commas.

• The state personal income taxrates range from 4.75% to 9.9% of taxable income.
• Effective beginning tax year 2020, the Legislature reduced Oregon’s first three income tax brackets from 5%, 7%, and 9%, to 4.75%, 6.75%, and 8.75% respectively.
• If you need more clarification about the reasons behind a significant increase, seeking guidance from a tax professional or using trusted tax software can provide clarity.
• This will likely lead many farm couples with estates exceeding $20 million to consider making large gifts between now and December 31, 2025.
• There is also a $1 million tax exemption, meaning you can subject $1 million from your estate’s taxable value before paying taxes.

Oregon is one of a handful of states in the US that does not have a general sales tax or use tax. Consumers legally wagered more than $100 billion on sporting contests in 2023, creating more than $1.8 billion in retained earnings balance sheet state revenue. Sports betting is now legal in 38 states and DC, and the landscape is rapidly evolving. However, if the farmer is no longer farming and simply cash renting the ground or collecting a crop share without participating in the farming, the estate may not qualify. The following tax tables are supported by iCalculator™ US as part of the suite of free tax tools available in the US Tax HUB we provide for Oregon. The standard deduction for a Head of Household Filer in Oregon for 2024 is $ 2,745.00.

Oregon Tax Credits

• Capital gains in Oregon are subject to the normal personal income tax rates.
• Most tax preparers can electronically file your return for you, or you can do it yourself using free or paid income tax software, like the examples listed below.
• The 2024 tax rates and thresholds for both the Oregon State Tax Tables and Federal Tax Tables are comprehensively integrated into the Oregon Tax Calculator for 2024.
• Estate tax is imposed when assets are transferred from an estate to heirs and beneficiaries.
• Measure 5, which was passed in November 1990, restricted non-school taxes on any property to $10 per $1,000 of real market value.
• Katelyn has more than 6 years of experience working in tax and finance.

Check out Beem Tax Calculator to get a quick and accurate estimate of your federal and state tax refund for free. In Oregon, different tax brackets are applicable to different filing types. Married couples filing their Oregon income tax return jointly will usually have wider tax brackets than those filing separately or as an individual. Oregon has a 40 cents per gallon gas tax rate and a $3.33 cigarette excise tax rate. The State of Oregon collects $6,498 in state and local tax collections per capita. Oregon has $10,214 in state and local debt per capita and has an 88 percent funded ratio of public pension plans.

• Moss Adams LLP and its affiliates assume no obligation to provide notification of changes in tax laws or other factors that could affect the information provided.
• Tax-Rates.org provides easy access to five of the most commonly used Oregon income tax forms, in downloadable PDF format.
• This article has been prepared for informational purposes only.
• The typical Oregon homeowner pays $3,633 a year in property taxes.

However, it may be possible to place the land into an LLC or similar entity and convert this real property to intangible property. If at the time of death, the owner is no longer an Oregon resident, the Oregon estate tax won’t apply since intangible property isn’t subject to estate tax for non-residents. Oregon only allows a $1 million exemption for estate taxes; however, it does have a special Natural Resource credit available to estates of less than $15 million. The bad news is it’s only available for the portion of the estate tax related to the active farm assets and may require a lien or other security. While there are no sales taxes in Oregon, income taxes can vary.

Katelyn has more than 6 years of experience working in tax and finance. She believes knowledge is the key to success and enjoys providing content that educates and informs. Profit and prosper with the best of Kiplinger’s advice on investing, taxes, retirement, personal finance and much more. Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more – straight to your e-mail.