If you are a resident or nonresident of Oregon and receive taxable income individually from property owned or business transacted in Oregon, you are subject to tax on net income. Therefore, if you are operating your business as an S corporation, partnership, limited liability company, or sole proprietorship, you will be subject to a personal income tax on your business income that passes through to you. In addition, local governments in Oregon are authorized to levy a local income tax, so be sure to check with your local government.
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Warning
Certain local governments in Oregon also assess a business income tax. The business income tax applies to any individual, sole proprietorship, partnership, joint venture, association, club, estate, trust, corporation or any other non-governmental entity capable of doing business. Wages earned by an employee are not subject to the business income tax. Make sure you check with your local government to see if you are subject to these local taxes.
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The following marginal tax rates and income brackets are in effect for 2009 (the rates will remain the same for 2010 and 2011, but the income brackets will adjust for inflation:
Single Individuals and
Married Individuals Filing Separately |
| Taxable Income |
Tax Rate |
| First $2,000 |
5% |
| Over $2,000, but not over $5,000 |
$100.00 plus 7% of excess over $2,000 |
| Over $5,000, but not over $125,000 |
$310.00 plus 9% of excess over $5,000 |
| Over $125,000, but not over $250,000 |
$11,110.00 plus 10.8% of excess over $125,000 |
| Over $250,000 |
$24,610.00 plus 11% of excess over $250,000 |
| Married Filing Jointly,Head of Household, and Qualifying Widow(er) |
| Taxable Income |
Tax Rate |
| First $4,000 |
5% |
| Over $4,000, but not over $10,000 |
$200 plus 7% of excess over $4,000 |
| Over $10,000, but not over $250,000 |
$620 plus 9% of excess over $10,000 |
| Over $250,000, but not over $500,000 |
$22,220.00 plus 10.8% of excess over $250,000 |
| Over $500,000 |
$49,220.00 plus 11% of excess over $5,000 |