Oregon payroll taxes
Every tax withheld from a Oregon paycheck or paid by the employer in 2026, with rates and wage limits.
Last verified November 2, 2026. Sources: oregon.gov, taxfoundation.org, taxnews.ey.com, taxnews.ey.com.
| Tax | Employee pays | Employer pays | Wage limit |
|---|---|---|---|
| Social Security | 6.2% | 6.2% | $184,500 |
| Medicare | 1.45%* | 1.45% | No limit |
| FUTA | — | 0.6% | $7,000 |
| Oregon SUTA | — | 2.4% (new) | $56,700 |
| Paid Leave Oregon | 0.6% | 0.4% | $184,500 |
| Statewide Transit Tax | 0.1% | — | No limit |
| Oregon income tax | 4.75%–9.9% | — | — |
*Plus 0.9% Additional Medicare Tax withheld on wages over $200,000. FUTA rate shown is net of the state credit.
State unemployment insurance
Oregon charges new employers 2.4% on the first $56,700 each employee earns in a year. After a few years, the rate is based on the employer's layoff history and ranges from 0.9% to 5.4%. Tax schedule 3. 2027 rates are to be mailed by Nov 13, 2026.
Special Payroll Tax Offset 0.135% is part of the UI rate. Paid Leave Oregon is 1% up to $184,500 (employer 40% if 25+ employees, employee 60%). Statewide Transit Tax is 0.1% employee-paid (separate).
Register and file with the Oregon unemployment tax agency.
Paid leave and disability programs
- Paid Leave Oregon: employees pay 0.6%, employers pay 0.4% on wages up to $184,500. Total 1.0%: employee 60% (0.6%), employer 40% (0.4%) for employers with 25+ employees; employers with <25 owe no employer share. 2027 rate not yet found (expected to be announced Nov 2026).
- Statewide Transit Tax: employees pay 0.1%. Employee-paid 0.1% of all wages. HB 3991 increase to 0.2% was paused pending referendum; voters rejected Measure 120 on May 19, 2026, so rate stays 0.1%.
Income tax withholding
Oregon has a graduated income tax with 4 brackets, from 4.75% up to 9.9% on taxable income over $125,000 for single filers. Portland Metro Supportive Housing Services tax 1% on taxable income over $125k single/$200k joint; Multnomah County Preschool for All 1.5% over $125k/$200k plus 1.5% more over $250k/$400k; Lane & TriMet transit taxes are employer-paid; statewide 0.1% transit tax withheld from wages
Frequently asked questions
- What payroll taxes do employers pay in Oregon?
- Social Security, Medicare, federal unemployment (FUTA) and Oregon unemployment insurance (SUTA), plus Paid Leave Oregon.
- What is the Oregon SUTA wage base for 2026?
- $56,700 per employee.
- Does Oregon require state income tax withholding?
- Yes. Employers withhold Oregon income tax based on the employee's state withholding certificate or federal W-4.