Oregon State Income Tax Withholding Information

State Abbreviation:

OR

State Tax Withholding State Code:

41

Acceptable Exemption Form:

W-4

Basis for Withholding:

State or Federal Exemptions

Acceptable Exemption Data:

S, M/Number of Exemptions

TSP Deferred:

Yes

Special Coding:

None

Additional Information:

If a State income tax certificate has not been processed or if a valid State exemption code is not present, the Federal exemption code will be used in the computation of State tax or if an invalid marital status (other than S or M) is present with the number of State exemptions, the highest Oregon withholding rate (Single) with the number of exemptions will be used in the computation of State tax.

Additional Resources:

TAXES 15-23, Oregon State Income Tax Withholding

Withholding Formula (Effective Pay Period 06, 2015)

  1. Subtract the nontaxable biweekly Thrift Savings Plan contributions from the gross biweekly wages.
  2. Subtract the nontaxable biweekly Federal Health Benefits Plan payment(s) (includes dental and vision insurance program and flexible spending account - health care and dependent care deductions) from the amount computed in step 1.
  3. Add the taxable biweekly fringe benefits (i.e., taxable life insurance) to the amount computed in step 2 to obtain the adjusted gross biweekly wages.
  4. Multiply the adjusted gross biweekly wages times 26 to obtain the gross annual wages.
  5. Subtract the employee's annualized Federal withholding tax from annualized gross pay to determine annualized taxable wages. The annualized Federal withholding tax to be deducted cannot exceed the maximum amount shown in the following table based on marital status and the annualized gross pay calculated in step 4.

Note: To calculate the annualized Federal withholding tax, multiply the biweekly Federal income tax withholding times 26 and deduct from the result of step 4.

Single
(Regardless of the Number of Exemptions)

If the Amount of Taxable Income Is:

The Maximum Federal Deduction Amount Is:

Over:

But Not
Over:

 

$

0

$

124,999.99

$

6,450

 

124,999.99

 

129,999.99

 

5,150

 

129,999.99

 

134,999.99

 

3,850

 

134,999.99

 

139,999.99

 

2,550

 

139,999.99

 

144,999.99

 

1,250

 

144,999.99

 

and over

 

0

Married
(Regardless of the Number of Exemptions)

If the Amount of Taxable Income Is:

The Maximum Federal Deduction Amount Is:

Over:

But Not
Over:

 

$

0

$

249,999.99

$

6,450

 

249,999.99

 

259,999.99

 

5,150

 

259,999.99

 

269,999.99

 

3,850

 

269,999.99

 

279,999.99

 

2,550

 

279,999.99

 

289,999.99

 

1,250

 

289,999.99

 

and over

 

0
  1. Determine the standard deduction allowance by applying the following guideline and subtract this amount from the annual wages.

    If the Employee Is:

    The Standard Deduction Is:

    Single claiming less than three exemptions

    $2,145

    Single claiming three or more exemptions

    $4,295

    Married

    $4,295
  2. If the employee's annualized gross wages calculated in step 4 are less than $50,000, calculate the annual tax amount on the adjusted taxable wages using one of the tables below.

    Single
    (With Less Than Three Exemptions)

    If the Amount of
    Taxable Income Is:

    The Amount of Oregon
    Tax Withholding Should Be:

    Over

    But Not
    Over:

     

    Of Excess Over:

    $0

    $3,350

     

    $194

    plus

    5%

    $0

    3,350

    8,400

     

    362

    plus

    7%

    3,350

    8,400

    and over

     

    715

    plus

    9%

    8,400

    Tax Withholding Table
    Married
    or
    Single (With Three or More Exemptions)

    If the Amount of
    Taxable Income Is:

    The Amount of Oregon
    Tax Withholding Should Be:

    Over

    But Not
    Over:

     

    Of Excess Over:

    $0

    $6,700

     

    $194

    plus

    5%

    $0

    6,700

    16,800

     

    529

    plus

    7%

    6,700

    16,800

    and over

     

    1,236

    plus

    9%

    16,800
  3. If the employee's annualized gross wages calculated in step 4 are $50,000 or more, calculate the annual tax amount on the adjusted taxable wages using one of the tables below.

    Single
    (With Less Than Three Exemptions)

    If the Amount of
    Taxable Income Is:

    The Amount of Oregon
    Tax Withholding Should Be:

    Over

    But Not
    Over:

     

    Of Excess Over:

    $0

    $8,400

     

    $0

    plus

    0%

    $0

    8,400

    125,000

     

    521.00

    plus

    9.0%

    8,400

    125,000

    and over

     

    11,015.00

    plus

    9.9%

    125,000

    Tax Withholding Table
    Married
    or
    Single (With Three or More Exemptions)

    If the Amount of
    Taxable Income Is:

    The Amount of Oregon
    Tax Withholding Should Be:

    Over

    But Not
    Over:

     

    Of Excess Over:

    $0

    $16,800

     

    $0

    plus

    0%

    $0

    16,800

    250,000

     

    1,042.00

    plus

    9.0%

    16,800

    250,000

    and over

     

    22,030.00

    plus

    9.9%

    250,000
  4. Based on the employee's marital status and the annualized gross wages calculated in step 4, reduce the total number of exemptions claimed by the personal allowance shown in the following table. Do not reduce exemptions below zero.

    Marital Status

    Annualized Wages

    Total Exemptions Claimed

    Personal Allowance Reduction

    Single

    Greater than $100,000

    1 or more

    1

    Married

    Greater than $200,000

    1

    1

    Married

    Greater than $200,000

    2 or more

    2
  5. Multiply the adjusted number of exemptions claimed by $194 and subtract this amount from the annual tax calculated above.
  6. Divide the annual Oregon tax withholding by 26 to obtain the biweekly Oregon tax withholding.