Tip: Start from the federal W-4 calculator to pre-fill your pay and federal results here automatically.
Your Paycheck
Filing Status
Credits & Adjustments (Optional)
Leave blank if you're not sure — these only affect your federal withholding.
$2,200 per child under 17 · $500 per other dependent. Reduces your withholding.
Add extra to cover side income, freelance, or investment income each paycheck.
Non-wage income: freelance, dividends, rental income. Annual total.
If you itemize and deductions exceed the standard deduction. Annual total.
File your Oregon return
Total withholding per paycheck
$394
$10,242 / year
Gross pay minus federal, FICA, and state taxes
Federal
Oregon State Tax
Oregon withholding subtracts your federal income tax withheld (up to a cap) before applying its rates, so it depends on your federal W-4.
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Oregon has its own form: the OR-W-4
Oregon created Form OR-W-4, the Oregon Employee's Withholding Allowance Certificate, because the redesigned federal W-4 no longer produces the right Oregon number. The Department of Revenue encourages employees to fill it out. If you give your employer neither a federal W-4 nor an OR-W-4, Oregon requires a flat 8% of your wages to be withheld.
An Oregon exemption from withholding applies only if you had no Oregon tax liability last year and expect none this year, and it expires every February 15. Without a new certificate by then your employer must withhold 8% of wages.
How Oregon withholding is calculated for 2026
Oregon's formula starts with your wages, subtracts the federal income tax withheld from your pay (up to $8,750 a year), and subtracts a standard deduction of $2,910 if you are single or head of household, or $5,820 if you are married. The result is run through Oregon's rates of 4.75%, 6.75% and 8.75%, with 9.9% on the highest earnings, and then each allowance you claim takes $263 off the tax.
Because federal withholding is subtracted, your Oregon withholding depends on your federal W-4. Raising federal withholding lowers Oregon withholding, and the federal tax cap phases out for high earners (starting at $125,000 for single filers and $250,000 for married filers), so the effect fades as income rises. Employees earning over $100,000 (single) or $200,000 (married) get no allowances in the formula.
Allowances, status and bonuses
On the OR-W-4 you choose single or married and claim allowances, each worth a $263 credit. A single employee who claims three or more allowances is withheld using the married tables. Employers may use a flat 8% on supplemental wages such as bonuses, overtime and commissions that are paid at a different time than regular pay.
Oregon also withholds amounts that are not income tax, such as the statewide transit tax and Paid Leave Oregon contributions. This calculator estimates state income tax only.
Oregon W-4 FAQ
Does Oregon use the federal W-4?+
Oregon uses its own OR-W-4. The Department of Revenue says the federal W-4 may not give the correct Oregon amount, so file the OR-W-4 if you want precise Oregon withholding.
What is Oregon's standard deduction for withholding in 2026?+
$2,910 for single or head of household and $5,820 for married, per the 2026 Oregon withholding formulas.
How much is an Oregon withholding allowance?+
Each allowance reduces your withholding by a $263 credit for 2026.
Why does my federal W-4 change my Oregon withholding?+
Oregon's formula subtracts your federal income tax withheld, up to $8,750 a year, before applying its rates. The more federal tax withheld, the less Oregon withholds, until the subtraction phases out at higher incomes.
What happens if I give my employer no withholding form?+
Oregon requires the employer to withhold a flat 8% of wages until you provide a withholding statement or an exemption certificate.
Start with your federal W-4
Your Oregon withholding follows your pay, but your W-4 is federal. Get the exact lines to fill in.
Open the W-4 Calculator →