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Oregon Nanny Tax Guide

Oregon has one of the higher income tax rates in the country, reaching 9.9%. The state also has a Paid Family and Medical Leave program. Portland Metro area workers owe transit taxes.

State Income Tax
State Unemployment
Disability Insurance
Paid Family Leave

Minimum Wage

$15.95/hour

SUTA Rate Range

0.7% - 5.4%

Key Things to Know

  • Progressive state income tax (4.75% - 9.9%)
  • Paid Family and Medical Leave program
  • High minimum wage ($15.95/hour)
  • Portland Metro area has transit taxes

Oregon Employer Requirements

State Income Tax

Oregon uses progressive tax brackets: 4.75% to $4,300, 6.75% to $10,750, 8.75% to $125,000, and 9.9% above. Standard deduction is $2,745 (single).

Paid Family and Medical Leave

Oregon's PFML requires contributions of 0.6% (employee pays 0.4%, employer pays 0.2% if 25+ employees). Benefits provide up to 12 weeks of paid leave.

Transit District Taxes (Portland)

The Portland Metro area has TriMet transit tax (0.8237%) and potentially Lane Transit tax (0.82%). These apply based on where work is performed.

State Unemployment Insurance

Employers pay SUI tax on the first $52,800 of wages. New employer rate is 2.1%, with rates ranging from 0.7% to 5.4% based on experience.

What will it cost?

Wondering what you'll actually owe as a Oregon employer? Adjust the numbers below to get a quick estimate of your annual tax obligations.

This guide is for informational purposes only and should not be considered legal or tax advice. Tax laws change frequently. Always verify current requirements with your state's tax agency or consult with a qualified tax professional.

Verified accurate as of February 2026Sources: Oregon tax agency, IRS Publication 926

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