Oregon STT tax rate for 2026

Hi RTO, I appreciate you bringing this to our attention. Let me clarify this for you.

We are currently aware of this update. Since the system was updated prior to this decision, it is currently displaying the 0.2% rate. That said, we have already scheduled a fix for this issue, which will be included in the January 22nd release. Once you download that update, the tax rate will automatically correct itself to 0.1%.  

If you have more questions, don’t hesitate to reply here.     

That is great there is a release coming!  But why is QB waiting until January 22nd to fix it?    That is pretty inconvenient!  It means having to change any employee's dollar amount manually when doing payroll.  

I couldn't find where to change the rate back to .1%.

we need to run payroll next week, January 12.  January 22 is too late!  There is no way to manually edit the rate for this particular item in Payroll Item List, it is hard-coded by QB.  HELP!!!!

Hey there, @Matt SVDP.

Thanks for joining the thread and sharing your concerns. 

To clarify, is the option grayed out when editing the item on the payroll list? Or is there no option to edit? 

If needed, here are the steps to edit the item on the list:

1. Back up your company file through the File menu to protect your data.
2. Go to the Lists menu and select Payroll Item List.
3. Locate the Oregon Statewide Transit Tax (STT) item in the list.
4. Right-click the STT item and click on Edit Item.
5. Click Next through the initial windows until you reach the screen where the rate is defined.
6. In the Rate (%) field, enter the new, correct STT tax rate. You can verify the current rate on the Oregon Department of Revenue website.
7. Tap on Next until you reach the final screen, then hit Finish to save the changes. 

For more information about this process, check out Set up local taxes in QuickBooks Desktop Payroll. 

I'll be sure to keep an eye out for your reply. Please don't hesitate to let me know if you have any additional questions or concerns. Chat with you soon! 

My edit payroll item goes:

name of tax

agency for paid liability

taxable compensation

pre tax deductions

finish

no where to change rate back to .1%

Hello Tori B and RTO - thanks for trying to help, appreciate it.  Tori this particular item has no rate field that is editable by the client (me).  What a shame.  It is hard-coded by QB.  It is really unacceptable that, given that QB is aware of the issue, they are not pushing a fix until January 22.  Creates huge inconvenience with the State taxing authority who struggle mightily with any adjustments........

Tori please push your company to update sooner if you can.

Thank you,  Matt

Should I override the tax on my next two payrolls to the .1% rate (payrolls that are due before the 1/22/26 fix) and also calculate in a correction for they payroll that was dated 1/2/2026? or does Quickbooks catch this all up and do a correction on each employee with the update?

"Should I override the tax on my next two payrolls to the .1% rate (payrolls that are due before the 1/22/26 fix) and also calculate in a correction for they payroll that was dated 1/2/2026? or does Quickbooks catch this all up and do a correction on each employee with the update?"

as a previous poster asked?  

Hi there, Glassman.

Thank you for your follow-up question regarding the Oregon Statewide Transit Tax (STT) rate and how to manage your upcoming payroll ahead of the update.

The next significant update, which will adjust the Oregon STT rate to 0.1%, is scheduled for mid-January 2026. Since the STT rate in QuickBooks Desktop Payroll is hard-coded, it cannot be manually changed or overridden at this time.

You can proceed with processing your payroll as usual. Once the new rates are implemented in our system in mid-January, we will automatically review any paychecks issued in 2026.

If there are any discrepancies, the system will automatically make the necessary adjustments to ensure the correct taxes are collected and paid. You won't need to make any manual corrections.

Please feel free to reach out again if you need assistance.

The STT tax is with held from the employees pay.  If I don't manually fix it back to the .1% then I am over with holding from the employee.

There is no way to the system will automatically make necessary adjustments to ensure correct taxes are collected and paid.  We are withholding the tax from the employee.  We have to manually adjust it so we are with holding the correct amount.

I'm using a temporary workaround - quicker then correcting each check.

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