Flat-Fee Tax Preparation for Oregon Residents

Oregon has a top income tax rate of 9.9% — one of the highest in the US — applying to income over $125,000 (single) or $250,000 (married)

The OR Pass-Through Entity Tax election allows eligible S-corps and partnerships to pay OR income tax at the entity level, bypassing the federal SALT cap

Oregon does not have a general sales tax — no state sales tax for consumers or businesses on most transactions

Portland Metro (Multnomah County) imposes a Preschool for All personal income tax of 1.5%–3% on income over $125,000 (single), on top of state tax

Oregon's Statewide Housing Tax (Metro Supportive Housing Services Tax) imposes an additional 1% on income over $125,000 for Metro area residents

Oregon does not conform to federal bonus depreciation — OR requires IRC Section 179 expensing only, with no bonus depreciation, creating significant book/tax differences for capital-asset-heavy businesses

Oregon's estate tax applies to estates over $1M — one of the lowest thresholds in the nation — with rates from 10% to 16%

OR's real estate transfer tax: Oregon does not impose a state transfer tax, but counties (particularly Clackamas, Washington, and Multnomah in the Portland metro) may impose real property transfer fees

Oregon Real Estate Tax

Oregon's real estate market — particularly Portland and Bend — has seen significant appreciation. OR's $1M estate tax threshold is among the lowest in the US and affects many property owners. The non-conformity with federal bonus depreciation creates differences between federal and OR returns for investors with cost segregation studies. Portland-area investors face additional metro-level income taxes.

Oregon Business Tax

Oregon businesses face a top state income tax rate approaching 10%, plus potential Portland metro surtaxes, making the OR PTET election highly valuable. Non-conformity with federal bonus depreciation requires careful tracking of OR-specific depreciation schedules. No sales tax simplifies certain compliance obligations but does not offset the high income tax burden.

Do I need to file an Oregon state tax return?

If you are an Oregon resident or earned OR-source income above the filing threshold, you must file a OR Form 40. Oregon taxes residents on worldwide income at rates up to 9.9%. Non-residents with OR-source income file a OR Form 40N. If you live in the Portland metro area, you may also owe separate returns for the Preschool for All tax (Multnomah County) and the Metro Supportive Housing Services Tax.

What are the Portland metro income surtaxes?

Multnomah County (Portland) imposes the Preschool for All tax: 1.5% on individual income from $125,000 to $250,000, and 3% on income over $250,000 (single filers). The Metro (Portland metro regional government) imposes a Supportive Housing Services income tax of 1% on individuals with income over $125,000. These are separate from OR state income tax and create a combined effective rate for Portland-area high earners that can approach or exceed 14%.

Does Oregon have an estate tax?

Yes. Oregon imposes an estate tax on estates over $1 million — one of the lowest thresholds in the US. The federal threshold is $13.61M, so many OR homeowners with a primary residence, retirement accounts, and modest investments may owe OR estate tax. Rates range from 10% to 16%. For Portland-area homeowners with appreciated real estate, the estate tax is a near-certain planning consideration.

What is the Oregon PTET election?

Oregon's Pass-Through Entity Tax allows eligible S-corps and partnerships to elect to pay OR income tax at the entity level. Given OR's high top rate of 9.9% plus potential Portland metro surtaxes, the PTET election can generate substantial federal tax savings for OR business owners subject to the SALT cap. The payment is deductible on the federal return as a business expense. We evaluate this election as a standard part of every OR business engagement.