Oregon Paycheck Calculator

Frequently asked questions

How does Oregon work out the income tax taken from my paycheck?

The Department of Revenue's Withholding Tax Formulas, 150-206-436, start from a base: the year's pay, less the federal income tax withheld from it (no more than $8,750), less a standard deduction of $2,910 ($5,820 for married workers). Rates from 4.75% to 9.9% are applied to the base, and $263 comes off for each allowance on your Form OR-W-4. For a $60,000 salary with 1 allowance, the base is $52,069.92, the tax from the rates is $4,236.62, less $263 is $3,973.62 a year, or $152.83 every two weeks.

How much is $60,000 a year after tax in Oregon?

For a single employee who claims 1 allowance on the OR-W-4 and is paid every two weeks, a $60,000 salary takes home $1,769.08 a paycheck, or $45,996.14 a year. The year's taxes are $5,020.08 of federal income tax, $3,973.58 of Oregon income tax, $3,720.08 of Social Security, $869.96 of Medicare, $360.10 for Paid Leave Oregon and $60.06 of statewide transit tax.

How much is $20 an hour after tax in Oregon?

At 40 hours a week and weekly pay, $20 an hour is $800.00 gross and $624.89 take-home a week for a single employee with 1 allowance. That is $54.08 of federal income tax, $54.23 of Oregon income tax, $49.60 of Social Security, $11.60 of Medicare, $4.80 for Paid Leave Oregon and $0.80 of transit tax. Switch the calculator to hourly and type your own hours, including overtime.

What do I put on the Oregon OR-W-4?

Line 1 is your marital status: mark Single if you will file as single, married filing separately or head of household, and Married if you will file jointly (or Married, but withhold at the higher Single rate for more tax). Line 2 is the number of allowances from the worksheets in the instructions: one for you, unless someone else can claim you, one for a spouse if you will file a joint return, and one for each dependent. Line 3 is any extra amount to withhold each paycheck. On the $60,000 example, 0 allowances withhold $162.95 a paycheck against $152.83 with 1 and $142.72 with 2. Without an OR-W-4, your employer uses an older federal Form W-4 from before 2020 if there is one, and otherwise withholds 8% of your wages.

Why can't I use the federal Form W-4 for Oregon?

Because the federal form was redesigned in 2020 and no longer has allowances, which the Oregon formula needs. The Department says the changes made the federal form unusable for Oregon withholding, so Oregon workers use the OR-W-4 instead. The formula still uses one federal number: the federal income tax withheld from your pay, which it subtracts up to $8,750 a year.

Why does Oregon withhold less at $50,000 a year than just below it?

The Department prints two formulas, one for wages under $50,000 a year and one for $50,000 and over, and the constants of the second are $263 lower. A single worker with 1 allowance paid every two weeks is withheld $133.04 on a $49,900 salary and $123.51 on $50,100. The calculator follows the printed formulas, so it shows the same step.

Why does my paycheck ignore my allowances when I earn more than $100,000?

Oregon treats the allowances like the personal exemption credit on the tax return, and that credit is not available above an income limit. The OR-W-4 instructions give the limits as $100,000 a year if you mark Single and $200,000 if you mark Married, and the employer's formula uses no allowances above them. The federal tax subtracted also shrinks, from $7,000 to nothing between $125,000 and $145,000 for single workers and between $250,000 and $290,000 for married ones.

What are Paid Leave Oregon and the statewide transit tax?

Paid Leave Oregon is the state's paid family, medical and safe leave insurance. The 2026 contribution is 1% of subject wages up to $184,500, and employees pay 60% of it, 0.6%. On a $60,000 salary that is $13.85 a paycheck, $360.10 a year. The statewide transit tax is one-tenth of 1% of wages with no cap, $2.31 a paycheck, $60.06 a year, and it is withheld even from employees who have no income tax withheld. Employers with 25 or more employees pay the other 40% of Paid Leave Oregon, $240.00 a year on that salary; smaller ones do not.

What does a 401(k), an HSA or a health plan do to my Oregon paycheck?

Oregon's formulas leave out pre-tax deductions for insurance, cafeteria plans, retirement plans and health savings accounts, so they all come out before Oregon income tax. Putting 6% of a $60,000 salary into a 401(k) ($138.46 a paycheck) cuts Oregon withholding by $10.66 and take-home pay by only $111.04. Paid Leave Oregon is figured on gross wages less deductions such as flexible spending and health savings accounts, so $100 of health premiums lowers it by $0.60 and Oregon income tax by $7.70. A 401(k) deferral is not one of those deductions, so this calculator charges Paid Leave Oregon on the pay before it.

Does this include the TriMet and Lane transit taxes?

No. Those are payroll taxes on the employer, based on the size of its payroll, and they are not taken from your pay. The Department of Revenue says they are separate from the statewide transit tax, which is withheld from every employee and is included here.

Who pays unemployment tax in Oregon, and how much is it?

The employer does, to the Employment Department. A new Oregon employer pays 2.4% in 2026 on the first $56,700 of each employee's pay, plus a 0.135% special payroll tax offset collected with it. That is $1,360.80 and $76.55 a year per employee at a $60,000 salary.