Tax Day will arrive a month later than usual this year, another consequence of the COVID-19 pandemic. With additional time to file your return, you may want to spend a few minutes reflecting on the tax system. Katelyn has more than 6 years’ experience working in tax and finance. oregon income tax rate She believes that knowledge is the key to success and enjoys helping others reach their goals by providing content that educates and informs. While this rate is low compared to many other states, median tax bills in Oregon are higher than in many parts of the country.
For the Single, Married Filing Jointly, Married Filing Separately, and Head of Household filing statuses, the OR tax rates and the number of tax brackets remain the same. Notice, however, the Oregon income tax brackets for Married Filing Jointly double from $4,050 to $8,100 at 6.75%, and double from $125,000 to $250,000 at 9.9% the highest tax bracket. Married Filing Separately income tax brackets are one half that of the Married Filing Jointly income tax brackets in the state of Oregon. Employer matching and nonelective contributions made to a Roth SEP or Roth SIMPLE IRA must be reported on Form 1099-R for the year in which the contributions are made to the employee’s Roth IRA. Report the total in boxes 1 and 2a of Form 1099-R using code 2 or 7 in box 7 and check the IRA/SEP/SIMPLE checkbox.
Total Estimated 2023 Tax Burden
The most common additions are for income taxes paid to other states and interest income from the government bonds of other states. The personal income tax is the largest source of state tax revenue and is projected to make up 86% of the total General Fund revenues in the 2021–2023 biennium. In January 2010, Oregon voters approved Ballot Measure 66, which made two permanent changes to personal income tax calculations. First, it established a new tax bracket for adjusted gross income above $125,000 (single filers) and $250,000 (joint filers) and second, phased out the federal tax subtraction for those same filers. People pay the top rate on incomes over $125,000 – $250,000 for couples filing jointly.
Read more here and check out our Guided Planner tool, where we’ll point you toward the strategies that might apply to you. Tax planning is a strategic approach designed to reduce a person’s or a company’s tax liability by leveraging various tax benefits and allowances. It’s about understanding the tax implications of your financial decisions, so you can minimize your taxes and, ultimately, keep more of your hard-earned money. Remember that Oregon may have very different deduction laws from the Federal Income Tax, so you may have to write a whole new list of deductions for your Oregon income tax return.
