Oregon Paycheck Calculator Use
Understanding your take-home pay in the Beaver State can be complex due to specific local taxes like the Statewide Transit Tax and the newer Paid Leave Oregon contribution. This Oregon paycheck calculator is designed to help employees and employers estimate net pay by accounting for federal withholdings, Oregon progressive income tax brackets, and mandatory state-specific payroll deductions.
- Gross Pay
- The total amount earned during the pay period before any taxes or deductions are removed.
- Pay Frequency
- How often you receive a paycheck (Weekly, Bi-weekly, Semi-monthly, or Monthly). This affects how tax brackets are applied.
- Pre-tax Deductions
- Contributions made to 401(k) plans, traditional IRAs, or health insurance premiums that reduce your taxable income.
How It Works
To calculate your Oregon net pay, the tool follows a multi-step process that mirrors the Oregon Department of Revenue's withholding formulas. First, it determines your taxable gross by subtracting pre-tax contributions. Then, it applies three distinct layers of state taxation plus federal requirements:
- Federal Withholding: Estimated based on your filing status and annual earnings projections.
- FICA Taxes: Combined Social Security (6.2%) and Medicare (1.45%) totaling 7.65%.
- Oregon Income Tax: A progressive system with rates ranging from 4.75% to 9.9%.
- Statewide Transit Tax: A flat 0.1% tax on wages of Oregon residents and nonresidents performing services in Oregon.
- Paid Leave Oregon: A 0.6% employee contribution (as of 2024) to fund the state's paid family and medical leave program.
Calculation Example
Example: A single employee in Portland earning a gross salary of $2,500 every two weeks (bi-weekly) with no pre-tax deductions.
Step-by-step estimation:
- Gross Pay: $2,500.00
- FICA (7.65%): $2,500 × 0.0765 = $191.25
- OR Transit Tax (0.1%): $2,500 × 0.001 = $2.50
- Paid Leave OR (0.6%): $2,500 × 0.006 = $15.00
- OR State Income Tax: Estimated at ~$185.30 (based on 2024 brackets)
- Federal Income Tax: Estimated at ~$240.50
- Net Pay: $2,500 – (191.25 + 2.50 + 15.00 + 185.30 + 240.50) = $1,865.45
Common Questions
What is the Oregon Statewide Transit Tax?
The Statewide Transit Tax was implemented in 2018. It is a 1/10th of one percent (0.001) tax on the wages of Oregon residents, regardless of where the work is performed, and nonresidents who perform services in Oregon. This revenue funds public transportation improvements across the state.
Why is Oregon income tax so high?
Oregon does not have a state sales tax. Consequently, the state relies heavily on personal income tax to fund public services. The top bracket of 9.9% is one of the highest in the country, but it only applies to taxable income over $125,000 for single filers.
How does Paid Leave Oregon affect my check?
Paid Leave Oregon is a program that allows workers to take paid time off for family, medical, or safety reasons. The total contribution rate is 1% of gross wages (up to a cap), but the law splits this: 60% is paid by the employee ($0.006 per dollar earned) and 40% by the employer.