Research Areas
Oregon
The Facts on Oregon’s Tax Climate
Last updated July 1, 2009
Here are some basic facts on Oregon’s tax system and how it compares to other states:
Tax Freedom Day Arrives on April 9 in Oregon
Tax Freedom Day is the day when Americans finally have earned enough money to pay off their total tax bill for the year. In 2009, Oregon taxpayers had to work until April 9 to pay their total tax bill, ranking it 26th highest in the nation. This is four days before national Tax Freedom Day (April 13). The Tax Freedom Days of neighboring states are: Washington, April 16 (ranked 8th nationally); Idaho, April 12 (ranked 18th); Nevada, April 8 (ranked 29th) and California, April 20 (ranked 4th).
Full study of Tax Freedom Day, nationwide and in each state
Oregon's State/Local Tax Burden Below National Average
Oregon's state/local tax burden has fallen 16 places, dropping from 10th highest in 1977 to 26th highest in 2008, partly due to the state's lack of sales tax. Currently estimated at 9.4% of income, Oregon's state/local tax burden ranks below the national average of 9.7%. Taxpayers in Oregon pay $3,719 per capita in state and local taxes.
Oregon's State-Local Tax Burden, 1977-Present
Other States' State/Local Tax Burdens
Historical Chart Comparing All States' State/Local Tax Burdens from 1977 to 2008
Oregon's 2010 Business Tax Climate Ranks 14th
Oregon ranks 14th in the Tax Foundation's State Business Tax Climate Index. The Index compares the states in five areas of taxation that impact business: corporate taxes; individual income taxes; sales taxes; unemployment insurance taxes; and taxes on property, including residential and commercial property. Neighboring states ranked as follows: Washington (9th), Idaho (18th), Nevada (4th) and California (48th).
50-State Comparison of Business Tax Climates (data only)
2009 State Business Tax Climate Index, Sixth Edition (full study)
Oregon's Individual Income Tax System
Oregon's personal income tax system consists of five separate brackets with a top rate of 11% kicking in at an income level of $250,000. That rate ranks the highest among all states levying an individual income tax. Oregon's 2006 individual income tax collections were $1,513 per person, which ranks 5th highest nationally.
50-State Table of Individual Income Tax Rates
50-State Table of State Individual Income Tax Collections
50-State Table of State and Local Individual Income Tax Collections Per Capita
Oregon's Corporate Income Tax System
Oregon's corporate tax structure consists of two brackets with a top rate of 7.9% kicking in $250,000. Among states levying corporate income taxes, Oregon's rate ranks 17th highest nationally. In 2007, state-level corporate tax collections (excluding local taxes) were $109 per capita, which ranked 39th highest nationally.
50-State Table of Corporate Income Tax Rates, 2000-2009
50-State Table of State and Local Corporate Income Tax Collections Per Capita and Per Household, 2005
50-State Table of State Corporate Income Tax Collections Per Capita, 2006
Oregon Levies No General Sales Tax
Oregon levies no general sales or use tax on consumers, joining Delaware, Alaska, New Hampshire and Montana as the only states not to do so. Oregon's gasoline tax stands at 25 cents per gallon, which ranks 21st highest nationally. Additionally, Oregon's localities are permitted to levy "local option" taxes on gasoline purchases. Oregon's cigarette tax stands at $1.18 per pack of twenty and ranks 24th highest nationally. The gasoline tax was adopted in 1919 and the cigarette tax in 1965.
50-State Table of Sales and Excise Tax Rates
50-State Table of State and Local General Sales and Gross Receipts Tax Collections Per Household and Per Capita, Fiscal Year 2005 and
Oregon Property Taxes: Middle of the Pack
Oregon is one of the 37 states that collect property taxes at both the state and local levels. As in most states, local governments collect far more. Oregon's localities collected $1,000.22 per capita in property taxes in fiscal year 2006, which is the latest year the Census Bureau published state-by-state property tax collections. At the state level, Oregon collected $6.45 per capita in property taxes during FY 2006, making its combined state/local per capita property taxes $1,006.67, which ranks 30th highest nationally.
State property tax collections per capita by state
Federal Tax Burdens and Expenditures: Oregon is a Donor State
Oregon taxpayers receive less federal funding per dollar of federal taxes paid compared to the average state. Per dollar of Federal taxes collected in 2005, Oregon citizens received approximately $0.93 in the way of federal spending. This ranks the state 36th highest nationally and represents a rise from 1995, when Oregon received $0.95 per dollar of taxes in federal spending (35th highest). Neighboring states and the amount of federal spending received per dollar of federal taxes paid were: Washington ($0.88), Idaho ($1.21), Nevada ($0.65), and California ($0.78).
Comparing the amount of federal taxes sent to Washington with the amount of federal spending coming back to the state
