Another kicker tax refund could be in the works for Oregon taxpayers

Help shape the future of the greater Portland region and discover tools, services and places that make life better today. The confusing letters are just the latest misstep in rolling out the new tax programs. The City of Portland, Metro and Multnomah County are working together to continue providing transparency about the process and answering taxpayer questions. Confusion about the recent notices shows we have room to improve, and we are committed to doing so. The City is evaluating ways to add further clarity to the website and billing notices.

Oregon estate and inheritance taxes

Oregon taxable income is equal to federal taxable income, with a limited number of additions and subtractions. The most common additions are for income taxes paid to other states and interest income from the government bonds of other states. For the 2023 tax year, Oregon’s standard deduction allows taxpayers to reduce their taxable income by $2,605 for single filers, $5,210 for married people filing jointly, $4,195 for heads of household and $5,210 for qualifying widow(er)s. ​In most cases, you must make estimated tax payments if you expect your tax after credits and withholding will be $1,000 or more, before you subtract any prior year refund you applied to your current year’s tax. Download Publication OR-ESTIMATE​​, for more information about estimated personal income tax payments.

The Oregon Income Tax

Quarterly estimated payments can be made through payroll withholding, online or by mail. State Economist Mark McMullen told lawmakers that could mean Oregon will send $582 million back to taxpayers in 2026, in what would be the state’s sixth consecutive kicker refund. The unique law refunds income tax payments that come in at least 2% higher than what lawmakers budgeted for. Less than a year after lawmakers passed a two-year budget, state economists once again say they might have underestimated how much the state would collect in personal income taxes and other revenues. Oregon has a graduated individual income tax, with rates ranging from 4.75 percent to 9.90 percent. Oregon has a 6.60 percent to 7.60 percent corporate income tax rate and levies a gross receipts tax.

ACH Refunds

The federal standard deduction for a Head of Household Filer in 2022 is $ 19,400.00. From Jesus to Adam Smith, there is wide agreement that a fair tax system is one based on the ability to pay — https://www.bookstime.com/articles/financial-accounting one that asks proportionately more of a rich person than of a poor person. Taxes pay to educate our children, to care for our seniors, and for many other services that we alone cannot shoulder.

They include property taxes and excise taxes on things like gasoline, alcohol, and tobacco. When you add up all state and local taxes, Oregon’s tax structure is actually regressive – meaning oregon state income tax low-income Oregonians pay a higher share of their income in taxes than the richest Oregonians. You can save time and money by electronically filing your Oregon income tax directly with the .

• If this holds, the richest 1 percent of Oregonians will get a rebate of $42,000 on average, while the lowest-paid workers will get about $60 on average.
• In other words, a minority of lawmakers — more easily captured by special interests — can block the will of the majority.
• If you fall into this camp, make sure that during tax season you look into possible deductions to help recoup the money you spend on the “employer” portion of FICA taxes.
• If you were a part-year resident and also had income from Multnomah County sources while you were a non-resident, Multnomah County taxes the combined total of your part-year and non-resident income.
• Low- to moderate-income taxpayers can also access preparation services through AARP and CASH Oregon.

Inheritance and Estate Tax and Inheritance and Estate Tax Exemption

The first year a taxpayer owes the taxes, there is no penalty for failing to make quarterly payments before April 15. After filing their first return, taxpayers receive a new tax account welcome letter from the City of Portland Revenue Division with information about quarterly estimated payments that may be applicable to them in subsequent tax years. Oregonians received record kicker payments this year, with about $1,000 going back to the median taxpayer who earns between $35,000 and $40,000 annually.

Oregon State Income Tax Credits

• That income threshold is doubled for married people filing together and heads of household.
• The state uses a four-bracket progressive state income tax, which means that higher income levels correspond to higher state income tax rates.
• If you pay for any benefits from your employer, such as health or life insurance, any premiums you pay will come out of your paycheck.
• We are compensated in exchange for placement of sponsored products and services, or by you clicking on certain links posted on our site.
• As working families across Oregon struggle with rising costs and meager wages, Oregon is on course to send massive tax rebates to the richest Oregonians.
• On average, taxpayers who e-file their returns and request their refund via direct deposit receive their refund 34 days sooner than taxpayers who mail their paper return and request paper refund checks.

Oregon Paycheck Calculator