The due date for the W-2 submission is January 31 of the subsequent year. Beginning January 2022, employers with a Multnomah County location are required to withhold this tax from employees that work within Multnomah County and earn $200,000 or more during the calendar year. Head over to the Federal income tax brackets page to learn about the Federal Income Tax, which applies in all states nationwide. The standard deduction, which Oregon has, is a deduction that is available by default to all taxpayers who do not instead choose to file an itemized deduction.

e-Filing: Submit Your Oregon Tax Return Online

Taxpayers may submit a waiver request along with their 2020 combined tax return. “Many of these taxpayers may be unfamiliar with quarterly estimated payments and may not have experienced underpayment fees before,” the governments’ statement explained. If a taxfiler has requested an extension to file with the IRS or State of Oregon, they must attach their federal/state extension to their Business Tax Return when they file and check the “Federal Extension” box. Late payment penalties will be applied to any tax due that is not paid by the original due date.

How To File Your Oregon Income Tax Return

• Remember that Oregon may have very different deduction laws from the Federal Income Tax, so you may have to write a whole new list of deductions for your Oregon income tax return.
• Oregon was one of the first Western states to adopt a state income tax, enacting its current tax in 1930.
• If you’re a single filer with a federal AGI no higher than $75,000 (or $150,000 for a married couple filing jointly), you can claim a standard credit of up to $50 (or up to $100 for married people filing jointly).
• If a taxfiler cannot complete their business tax return by the original due date, they may request a six-month extension to file their business tax return.
• The State Tax Research Institute reported that state and local income taxes in Portland total nearly 14% — a rate that’s higher than San Francisco or New York.

The payment for your personal income taxes is due at the same time you file and pay your federal and state taxes (generally April 15 for most filers). If you have requested an extension of time to file your tax return, your payment is still due on the original due date. You must file your personal income tax return(s) and pay your personal income tax liability to the City of Portland’s Revenue Division following oregon state income tax the same schedule that federal and state income tax returns are due (generally April 15). These taxes are not included on your Oregon tax return and must be filed with and paid to the City of Portland Revenue Division. For 2021, employers have been asked to offer employees the option of having these income taxes withheld as soon as their payroll systems can be configured to capture and remit the taxes withheld.

City of Portland Business License Tax

However, any single charitable contribution of more than $250 requires a written statement. You can’t deduct political contributions, dues paid to fraternal organizations or the value of any services or benefits you received in connection with your contributions. Statewide, the average effective property tax rate (annual property taxes as a percentage of home value) is 0.93%. Because of the inherently local nature of property tax collections in Oregon, rates vary significantly between counties. Once you’ve filed your tax return, all you have to do is wait for your refund to arrive. If you want to check the status of your Oregon tax refund, you can visit the Oregon Income Tax Refund page.

In a previous report released in October, a consultant for Oregon Business & Industry, compared top income tax rates for cities and states. According to their data, Portland’s income tax rate of 14.7% for high earners is second only to New York City. PORTLAND, Ore. (KOIN) — After the State of the Economy Report was released Tuesday, much of the discussion on its findings https://www.bookstime.com/ was about how Portland has one of the highest income tax rates in the country and whether it’s driving high earners out of the city. In 2020, Multnomah County voters approved a measure to establish a tuition-free preschool program. This program is funded by a personal income tax, which went into effect for tax years beginning on or after January 1, 2021.

• The tax is applied to wages, salaries, and other compensation within certain thresholds, which are adjusted periodically.
• For taxpayers that owe $1,000 or more for either tax program, quarterly estimated payments are required if the tax liability in the prior tax year is $1,000 or more.
• In Oregon, different tax brackets are applicable to different filing types.
• That means capital gains can be taxed at a rate as high as 9.9%, depending on your total income.
• Today, Portland’s Business License Tax is a net income tax on business activity (including renting residential and commercial real property) conducted in Portland.