Oregon Tax Guide for Employers (2026) 

Oregon has one of the highest state income tax rates in the nation, with a progressive system that can reach over 9.9%. The state also levies a Statewide Transit Tax on employee wages and requires separate Oregon Workers’ Benefit Fund assessments. Oregon has no sales tax, making income tax the state’s primary revenue source. 

Oregon’s progressive income tax features multiple brackets with a top rate exceeding 9.9%. The state requires FIT to be calculated alongside Oregon SIT because the federal tax liability factors into the Oregon calculation. Employees complete Form OR-W-4 with their filing status and allowances. Oregon also has a Statewide Transit Tax (STT) that applies to all wages with no wage base limit. 

Oregon supports the following supplemental calculation methods. When using the flat method, the supplemental rate is 8%. 

Your assigned SUTA rate will be based on your company’s experience with unemployment claims. New employers typically start at the default rate of 2.6%. 

Oregon requires contributions to Oregon Paid Leave (PFML). Both employer and/or employee contributions may apply. Verify the current rates and requirements at https://www.oregon.gov/dor/programs/businesses/pages/payroll-withholding.aspx.

Oregon employers must withhold the Statewide Transit Tax (STT) from all employee wages. Verify the current rate at oregon.gov/dor.

Follow these steps to begin withholding Oregon payroll taxes for your employees: 

1. Obtain your Federal EIN at irs.gov
2. Register with the Oregon Department of Revenue at oregon.gov/dor
3. Register for SUTA with the Oregon Employment Department at oregon.gov/employ
4. Register for Paid Leave Oregon at paidleave.oregon.gov
5. Submit a Netchex tax team request to enable Oregon SIT, STT, SUTA, and PFML
6. Have each employee complete their tax forms with an automated onboarding task in Netchex, digitally storing tax forms
7. Configure any additional tax settings in the employee profile

Once setup is complete in Netchex, the system will automatically calculate, withhold, and remit all Oregon payroll taxes on your behalf. 

The following are general filing and deposit deadlines for Oregon payroll taxes. Deadlines may vary based on your employer size and deposit frequency. Always verify current schedules at Oregon Department of Revenue. 

Note: Deadlines are subject to change. Always confirm current requirements directly with Oregon Department of Revenue at https://www.oregon.gov/dor/programs/businesses/pages/payroll-withholding.aspx. 

The following official resources will help you stay current on Oregon payroll tax requirements: 

• Oregon Department of Revenue
• Oregon Paid Leave
• Oregon Statewide Transit Tax

Does Oregon have a statewide transit tax? 

Yes. Oregon’s Statewide Transit Tax (STT) is withheld from all employee wages at a rate of 0.1% (verify at oregon.gov/dor). This is separate from SIT. 

Does Oregon have a Paid Family Leave program? 

Yes. Oregon’s Paid Leave Oregon (PFML) program requires employer and employee contributions. Verify current rates at paidleave.oregon.gov. 

What form do Oregon employees complete? 

Employees complete Oregon Form OR-W-4 for state withholding. 

What is Oregon’s SUTA wage base? 

Oregon’s SUTA wage base is $54,300 per employee per year (2025). Verify at oregon.gov/employ. 

What is Oregon’s top income tax rate? 

Oregon’s top marginal income tax rate is 9.9%.