Oregon state income tax

Last updated: 2026-04-27

TL;DR / ELI5

Oregon taxpayers generally file OR-40 and pay state income tax based on progressive brackets on taxable income after state-specific adjustments. Progressive brackets; metro/Multnomah add-ons possible. BasilTax currently focuses on federal accuracy for this state—check back as coverage expands so you can verify withholding and key lines against your W-2 and other forms.

Primary form: OR-40

BasilTax engine: Not yet — federal plus manual state review

Structure: bracket

Progressive brackets; metro/Multnomah add-ons possible.

Oregon income tax at a glance

This guide explains how Oregon fits into your overall filing picture. Your federal Form 1040 is only half the story—states add their own definitions, subtractions, credits, and withholding rules.

Most Oregon residents will prepare OR-40 alongside the federal return. Progressive brackets; metro/Multnomah add-ons possible.

Withholding and W-2 boxes

If you work in Oregon (or your employer withholds for Oregon), compare boxes 15–17 on your Form W-2 to what you expect on the state return. Mismatches here are a common source of balance due surprises.

Credits, deductions, and quirks

State returns often start from federal adjusted gross income (AGI) and then apply state-specific subtractions, additions, credits, and alternative minimum taxes. Read your state instructions for the exact list—this page is a hub, not a substitute for official guidance.

Verification workflow

Upload your PDFs, assign them to a return, and run compute. When BasilTax supports Oregon end-to-end, you can trace state lines to the same documents you used for federal. When support is still in progress, use BasilTax to lock down federal and broker schedules first, then complete Oregon manually with confidence.

Ready to tie every line to your documents?

Upload your W-2s and 1099s—BasilTax extracts fields, computes federal and state, and explains each number with citations.

Try BasilTax free

Frequently asked questions

Does Oregon have a state income tax?
Yes—Oregon has a state income tax system described on OR-40. Progressive brackets; metro/Multnomah add-ons possible.
What form do I file for Oregon?
Most residents use OR-40 for the state return, subject to exceptions for part-year residents and special situations. Always confirm the latest state instructions each filing season.
Does BasilTax calculate Oregon state tax?
BasilTax is focused on federal accuracy for Oregon today; you should still review state-specific rules and forms outside the app until engine support ships.