Oregon payroll · DOR withholding formulas 2026

Oregon paycheck calculator.

Gross pay in, take-home pay out. Oregon income tax uses the Department of Revenue’s 2026 formula, which subtracts your federal withholding, plus Paid Leave Oregon and the statewide transit tax. Everything runs in your browser; nothing is sent or stored.

Your pay

Gross pay this period ($)

Pay frequency

Form OR-W-4 marital status

Form OR-W-4 allowancesEach allowance is a $263 credit in the 2026 formula.

Include Paid Leave Oregon employee contribution (0.6%)

Include statewide transit tax (0.1%)

Pre-tax: lowers income tax and FICA ($ per period)For example Section 125 health premiums.

Pre-tax: lowers income tax only ($ per period)For example a traditional 401(k) deferral, which is still subject to Social Security and Medicare tax.

Local income or occupational tax (% of taxable wages, optional)A rate you supply. No local tax tables are built in.

Federal Form W-4 filing status

Federal W-4 Step 2 box is checked (two jobs)

Federal W-4 Step 3: credits, annual ($)

Federal W-4 Step 4(a): other income, annual ($)

Federal W-4 Step 4(b): deductions, annual ($)

Federal W-4 Step 4(c): extra withholding per period ($)

Wages already paid this year, before this check ($)Only matters near the $184,500 Social Security wage base or the $200,000 Additional Medicare threshold.

Estimated Oregon paycheck (2026)

Worked example

Biweekly gross $2,500, single, one allowance, $100 section 125 premium and $150 traditional 401(k). Income-tax wages are $2,250. Federal income tax $186.15, Social Security $148.80 and Medicare $34.80 (the same federal figures as the U.S. Paycheck Calculator example).

Oregon: annual wages $58,500; federal tax withheld $186.15 × 26 = $4,839.90 (under the $8,750 cap) and the $2,910 standard deduction give a base of $58,500 − $4,839.90 − $2,910 = $50,750.10. For wages of $50,000 or more the single formula is $678 + 8.75% × ($50,750.10 − $11,400) = $4,121.13, minus 1 × $263 = $3,858.13 a year, ÷ 26 = $148.39.
Paid Leave Oregon: 0.6% × $2,400 = $14.40. Statewide transit tax: 0.1% × $2,400 = $2.40.
Take-home: $2,500 − $250 pre-tax − $186.15 − $148.80 − $34.80 − $148.39 − $14.40 − $2.40 = $1,715.06.

How it is calculated

Federal withholding is IRS Publication 15-T (2026) Worksheet 1A for a Form W-4 from 2020 or later, and Social Security (6.2% to $184,500), Medicare (1.45%) and Additional Medicare Tax (0.9% over $200,000) follow IRS Publication 15. Oregon’s formula builds a base wage: annual wages minus federal tax withheld (capped at $8,750, and phased out to nothing for wages from $145,000 single or $290,000 married) minus the standard deduction ($2,910 single, or $5,820 for married employees and single employees with three or more allowances). The 4.75%, 6.75%, 8.75% and 9.9% formula for the matching wage range is applied, then $263 per allowance is subtracted. The federal withholding used is the figure this calculator computes from your W-4 entries. Paid Leave Oregon is 60% of a 1% contribution (0.6%) up to $184,500 of wages, and the statewide transit tax is 0.1% of wages.

Assumption: the pre-tax amounts you enter reduce Oregon taxable wages the same way they reduce federal income-tax wages; your employer’s payroll setup controls the exact treatment. Not covered: W-4s from 2019 or earlier, the Oregon Workers’ Benefit Fund assessment, supplemental pay (Oregon allows an 8% flat rate when paid off-cycle) and employees with no Form OR-W-4 on file (8% flat), and wage bracket method rounding. This is a planning estimate, not an official calculation or tax advice.

Sources and as-of dates

Oregon Withholding Tax Formulas 150-206-436 (Rev. 12-31-25): the computer formula, $2,910 and $5,820 standard deductions, $263 allowance credit, federal-tax subtraction cap and phase-out. The PDF’s own text mentions both $8,500 and $8,750 for the cap and its worked example 3 shows a $5,100 cap that does not match its phase-out table; this tool follows the formula and phase-out tables ($8,750).
Paid Leave Oregon, employees overview: 2026 total contribution rate of 1% on up to $184,500 of wages; employees pay 60%.
2026 Oregon Combined Payroll Tax Report Instructions: statewide transit tax (STT) rate of 0.001.
IRS Publication 15-T (2026): dated Dec 3, 2025: Worksheet 1A and the annual Percentage Method tables used for federal withholding.
IRS Publication 15 (2026), Employer’s Tax Guide: dated Dec 15, 2025: 6.2% Social Security up to a $184,500 wage base, 1.45% Medicare, 0.9% Additional Medicare Tax over $200,000.
Figures retrieved October 16, 2026. States and the IRS republish these formulas, usually each January; this tool covers 2026 only. It does not look anything up from a government system.

FAQ

Why does my real paycheck differ from this estimate?

Employers may use printed Oregon tables instead of the formula, round differently, apply your exact Form W-4 entries and withhold local, disability, benefit and retirement amounts this tool does not model. Treat the result as an estimate, not tax advice.

Why does Oregon withholding depend on my federal withholding?

Oregon lets taxpayers subtract federal income tax from income, up to a limit, so the state formula subtracts the federal tax withheld (up to $8,750 a year, less for high earners) before applying Oregon rates.

What is the Oregon statewide transit tax?

A 0.1% tax on wages that the employer withholds; the Department of Revenue’s 2026 combined payroll tax instructions list the statewide transit tax rate as 0.001. Rates can change by law, so check the current instructions if yours looks different.

What if I never filed a Form OR-W-4?

Oregon requires employers to withhold a flat 8% of wages until an employee provides a withholding statement or exemption certificate, per the Department of Revenue formulas booklet.

Does a 401(k) deferral lower Social Security and Medicare tax?

No. Per IRS Publication 15, elective 401(k) deferrals are exempt from income tax withholding but remain subject to Social Security and Medicare tax. Section 125 cafeteria-plan benefits such as health premiums generally are not.