TAXES 19-17, Oregon State Income Tax Withholding
Published: February 25, 2019
Effective: Pay Period 03, 2019
Summary
The income tax withholding formula for the State of Oregon includes the following changes:
- The standard deduction amount for Single filers claiming less than three (3) allowances will increase from $2,215 to $2,270.
- The standard deduction amount for Single filers claiming three (3) or more allowances will increase from $4,435 to $4,545.
- The standard deduction amount for Married filers will increase from $4,435 to $4,545.
- The annual tax credit amount, per exemption, will increase from $201 to $206.
- The annualized deduction for Federal tax withheld will increase from a maximum of $6,650 to $6,800.
- The taxable tables for all filers will change.
No action on the part of the employee or the personnel office is necessary.
Tax Formula
State Abbreviation: |
OR |
State Tax Withholding State Code: |
41 |
Acceptable Exemption Form: |
OR-W-4 or 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. |
Withholding Formula (Effective Pay Period 03, 2019)
- Subtract the nontaxable biweekly Thrift Savings Plan (TSP) contributions from the gross biweekly wages.
- 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.
- Add the taxable biweekly fringe benefits (e.g., taxable life insurance) to the amount computed in step 2 to obtain the adjusted gross biweekly wages.
- Multiply the adjusted gross biweekly wages by the number of pay dates in the tax year to obtain the gross annual wages.
- 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(s) based on marital status and the annualized gross pay calculated in step 4:
Single (Regardless of the Number of Exemptions) Tax Withholding Table
If the Amount of Taxable Income Is:
The Maximum Federal Deduction Amount Is:
Over $0 but not over $124,999.99
$6,800
Over $124,999.99 but not over $129,999.99
$5,450
Over $129,999.99 but not over $134,999.99
$4,100
Over $134,999.99 but not over $139,999.99
$2,700
Over $139,999.99 but not over $144,999.99
$1,350
Over $144,999.99
$0
Married (Regardless of the Number of Exemptions) Tax Withholding Table
If the Amount of Taxable Income Is:
The Maximum Federal Deduction Amount Is:
Over $0 but not over $249,999.99
$6,800
Over $249,999.99 but not over $259,999.99
$5,450
Over $259,999.99 but not over $269,999.99
$4,100
Over $269,999.99 but not over $279,999.99
$2,700
Over $279,999.99 but not over $289,999.99
$1,350
Over $289,999.99
$0
- 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 (3) exemptions
$2,270
Single claiming three (3) or more exemptions
$4,545
Married
$4,545
- 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) Tax Withholding Table
If the Amount of Taxable Income Is:
The Amount of Tax Withholding Should Be:
Over $0 but not over $3,550
$206.00 plus 5.00%
Over $3,550 but not over $8,900
$383.50 plus 7.00% of excess over $3,550
Over $8,900
$758.00 plus 9.00% of excess over $8,900
Single (With Three or More Exemptions) or Married Tax Withholding Table
If the Amount of Taxable Income Is:
The Amount of Tax Withholding Should Be:
Over $0 but not over $7,100
$206.00 plus 5.00%
Over $7,100 but not over $17,800
$561.00 plus 7.00% of excess over $7,100
Over $17,800
$1,310.00 plus 9.00% of excess over $17,800
- 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) Tax Withholding Table
If the Amount of Taxable Income Is:
The Amount of Tax Withholding Should Be:
Over $0 but not over $8,900
$0.00
Over $8,900 but not over $125,000
$552.00 plus 9.00% of excess over $8,900
Over $125,000
$11,001.00 plus 9.90% of excess over $125,000
Single (With Three or More Exemptions) or Married Tax Withholding Table
If the Amount of Taxable Income Is:
The Amount of Tax Withholding Should Be:
Over $0 but not over $17,800
$0.00
Over $17,800 but not over $250,000
$1,104.00 plus 9.00% of excess over $17,800
Over $250,000
$22,002.00 plus 9.90% of excess over $250,000
- 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 0 (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
- Multiply the adjusted number of exemptions claimed by $206 and subtract this amount from the annual tax calculated above.
- Divide the annual Oregon tax withholding calculated in step 10 by the number of pay dates in the tax year to obtain the biweekly Oregon tax withholding.
Resources
To view the updated tax formula, go to the page from the drop-down menu on the National Finance Center (NFC) homepage. Select the tab and select from the menu to launch the tax map. Select the desired State from the map provided for the formula.
Inquiries
For questions about NFC processing, authorized Servicing Personnel Office representatives should contact the NFC Contact Center at or via the customer service portal.