Oregon State Tax Help: Resolve State Tax Debt with Local Experts

Oregon has a graduated individual income tax from 4.75% to 9.9%, with the top rate applying to income above $250,000 for single filers; Portland adds a separate 1% Metro and 1% Multnomah County income tax for high earners, making the effective top rate over 11.9%. Oregon has no state sales tax, one of only five states with this distinction, but Portland, Multnomah County, and other jurisdictions impose local income taxes and Statewide Transit Tax (STT) at 0.1% of wages. Corporate income tax in Oregon is 6.6% on the first $1 million and 7.6% on income above that; Oregon also imposes the Corporate Activity Tax (CAT) at 0.57% of Oregon commercial activity above $1 million per year. Payroll taxes require Oregon employers to withhold state income tax, the Statewide Transit Tax, paid family and medical leave contributions, and any applicable local taxes; the multi-layer payroll tax burden for Oregon employers is among the highest nationally. The Oregon CAT is relatively new (effective 2020) and many businesses with Oregon revenue are unaware they have a CAT filing obligation; penalties for non-registration start at $100 per day. Back tax debt in Oregon accrues at 8% annual interest; the Department of Revenue can garnish wages, intercept Oregon Lottery prizes, place liens, and levy bank accounts. Self-employed tech workers, real estate investors, and remote employees whose employers are in other states but who live in Oregon are frequent sources of Oregon back tax issues. Oregon offers installment agreements, penalty waivers with reasonable cause, and an appeals process through the Oregon Tax Court.