State-by-State Guide to Taxes on Retirees - Oregon
Tool | November 2019

State-by-State Guide to Taxes on Retirees

Oregon

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The Bottom Line
Flag of Oregon

Mixed Tax Picture

Although Oregon does not tax Social Security benefits, most other retirement income is taxed at your top income tax rate, which can be as high as 9.9%. However, you can deduct up to $6,250 of federal income taxes paid on your Oregon return, and there is a retirement-income credit for seniors with certain income restrictions. One bright spot in Oregon’s tax picture is its absence of a sales tax. You can buy anything in the state and never pay a penny in sales taxes. There is a Senior Citizen Property Tax Deferral program, but income limits apply.

State Sales Tax

None

Income Tax Range

Low: 5% (on up to $3,450 of taxable income for single filers and up to $6,900 for married couples filing jointly)

High: 9.9% (on taxable income over $125,000 for single filers and over $250,000 for married couples filing jointly). Residents can deduct some of their federal income tax from state taxable income. The subtraction is limited to $6,650 ($3,325 if married filing separately). Local income taxes may be due as well; the average local levy is 0.36%, according to the Tax Foundation.

Social Security

Benefits are not taxed.

Exemptions for Other Retirement Income

Income from federal government retirement plans for work or points earned before October 1, 1991, is exempt. Railroad Retirement benefits are fully exempt.

Taxpayers age 62 and older may qualify for a tax credit equal to the lesser of their Oregon tax liability or 9% of taxable retirement income, depending on the amount of their household income, Social Security benefits and Railroad Retirement benefits.

Property Taxes

In Oregon, residents pay an average of $1,121 in taxes per $100,000 of assessed home value.

Tax breaks for seniors: Homeowners 62 and older may delay paying property taxes through the Property Tax Deferral for Disabled and Senior Citizens program. To qualify, the taxpayer must live on the property and have had a total household income of less than $45,500 in 2018.

Vehicle Taxes

None

Inheritance and Estate Taxes

Oregon has a state estate tax for estates of more than $1 million. Rates range from 10% to 16%.

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