Oregon paycheck calculator for hourly and salary pay 2025

Calculating paycheck in Oregon

Here’s a step-by-step guide to walk you through the paycheck calculator:

1. Fill in the employee’s details.

This includes just two items: your employee’s name and the state where they live. These details will help the tool calculate some of the employee’s local taxes.

2. Add the employee’s pay information.

You should see fields that say pay type, pay rate, hours worked, pay date, and pay period. Start with “pay type” and select hourly or salary from the dropdown menu. 

If the employee is hourly, input their hourly wage under “pay rate” and fill in the number of hours they worked that pay period. If the employee worked more than 40 hours and accrued overtime, record 40 here and save the rest for “additional pay.”

If the employee is salaried, both the “pay rate” and “hours worked” fields will disappear. Instead, you’ll need to know how much the employee makes each pay period. You’ll put that into the field labeled “amount.” 

Then select the pay date and the employee’s pay frequency—for example, if you pay them weekly or every two weeks. 

3. Input any additional pay the employee receives.

If the employee is salaried, you’ll only see two fields: bonus and commission. Fill in those amounts, if applicable.

If the employee is hourly, you should see four fields: overtime worked, bonus, commission, and salary. This is your opportunity to add any additional pay they should receive this pay period. If the employee earned overtime, input the number of overtime hours they worked. The tool calculates overtime pay using time and a half.

4. Fill in the employee’s federal tax information.

This includes the employee’s filing status, number of allowances, and additional withholdings. You should be able to glean this information from the employee’s W-4 form. If you don’t yet have the employee’s W-4, the payroll calculator can fill in tax rates to help you create a semi-accurate paycheck estimate.

5. Fill in the employee’s state tax information.

Again, this includes the employee’s filing status, number of allowances, and additional withholdings. This information can be taken from the employee’s state W-4 form. 

6. Calculate the employee’s paycheck.

To see an estimate of the employee’s earnings for the pay period, select “calculate check.”

Oregon income tax rate

Like most states, Oregon has a graduated income tax rate, which means that the rate of taxation goes up with income level. For 2024, Oregon state income tax rates range from 4.75% to 9.9%. 

Oregon also collects a statewide transit tax through payroll withholding. This tax rate is a flat 0.1%.

Unique to Oregon, two jurisdictions collect additional local taxes that are based on wages but imposed directly on the employer rather than the employee. The Tri-Met Transit District (which includes the city of Portland) assesses a transit payroll tax of 0.8137%. The Lane County Transit District (which includes the city of Eugene) assesses a transit payroll tax of 0.79%. 

Oregon tax withholdings

Every employer who pays Oregon wages is subject to Oregon wage withholding requirements. Oregon wages typically include any wages paid to Oregon residents or nonresidents for work performed within the state. For work performed outside the state, an employer may still be required to withhold taxes. It depends on if the withholding tax is already being paid to another state for such an employee. The withholding can also be waived for out-of-state employers who pay an Oregon resident for work performed outside the state.

In general, whenever federal wage withholding is required for Oregon wages, Oregon wage withholding is required as well. Wages that are exempt from federal wage withholding are generally also exempt from Oregon wage withholding. 

State and federal law does provide exemptions from Oregon wage withholding, including the following:

• Labor connected with planting, cultivating, or harvesting seasonal agricultural crops if the wages are less than $300 annually
• Nonresident members of the military and spouses
• Nonresident employees of certain interstate carriers

A recently established paid leave program in Oregon is funded jointly by employers (with more than 25 employees) and employees. The Paid Leave tax rate is 1% on gross wages up to $168,600 in 2024, with employers paying 40% of the contribution and employees paying 60%.

In Oregon, employers pay the entire cost of the state unemployment insurance (SUI) tax, which provides benefits to qualified unemployed or underemployed workers during periods of unemployment through no fault of their own. Employees are not subject to Oregon SUI taxes. 

The employer SUI tax rate is currently 0.9% to 5.4%, depending on the business’s experience level, and applied to a taxable wage base of $52,800.

For specific information on how and where to register your business to submit state withholding and unemployment taxes in Oregon, consult our payroll tax map.

In addition to Oregon state income taxes, employers also have to consider federal tax withholdings. Money taken out for federal taxes goes toward federal income taxes, Social Security, and Medicare. An employee’s tax bracket depends on their gross income, excluding pre-tax deductions.

Employers are also responsible for making FUTA (Federal Unemployment Tax Act) payments. This is a federal unemployment tax that is separate from Oregon’s state unemployment tax. It’s based on the wages you pay employees but is NOT deducted from their wages. The business must pay for it.

Opportunities for deductions on Oregon paychecks

Aside from standard federal deductions, there are other common payroll deductions that you may need to apply if you offer benefits. Since employers subtract this income before taxes, these deductions can move employees to a lower tax bracket. 

Some common pre-tax deductions include: 

• Health insurance 
• Dental and vision benefits 
• Health savings account (HSA) 
• Wellness benefits
• Disability insurance 
• Life insurance 
• 401(k) contributions 
• Court-ordered garnishments, including child support, alimony, back taxes, and overdue loans 
• Commuter benefits

Note: Our paycheck calculator only accounts for federal and state deductions. Pre-tax deductions do not factor into our paycheck estimates. If you have questions about these deductions, talk to an accountant or payroll specialist. 

Frequently asked questions

What are payroll taxes?

Payroll taxes are taxes levied on employers and employees to fund various state and federal programs, including Social Security, Medicare, unemployment benefits, education, defense, construction, and infrastructure maintenance such as roads, parks, and first responder services. Employers must deduct employee contributions from their paychecks and send tax funds to the proper authorities.

How do I calculate taxes from my paycheck in Oregon? 

Follow the steps in Calculating Paycheck in Oregon to make sure your calculation reflects all the relevant factors, including standard annual deductions by marital status and the current Oregon tax rate schedules, which are both subject to change from year to year. (Also, if you have a new pay rate, you can use this tool as a take-home pay calculator to estimate how much money you’ll actually be depositing each pay period.)

How can QuickBooks make Oregon payroll easier?

QuickBooks has multiple features to make Oregon payroll easier:

• Automation reduces tedious manual entries and frees up your time.
• QuickBooks calculates, files, and pays your payroll taxes for you—100% accurate tax calculations guaranteed.
• With tax penalty protection, you’re covered up to $25,000 if you receive a penalty for any reason.
• Your team can get paid fast with same-day direct deposit while you hold onto your cash longer.
• Time tracking can improve timesheet accuracy and streamline approvals.
• Seamless integration of processes can save you hours every week.
• With the Workforce app, your team can track their own hours and view their pay info and W-2s.

Flexible payroll plans for your business

QuickBooks offers flexible payroll plans tailored to your business needs. Whether you want to streamline payday, accurately track time, manage HR tasks, or provide benefits to your team, there's a payroll solution for your Oregon business. 

Existing QuickBooks users can easily add payroll functionalities and leverage the QuickBooks Workforce app for enhanced employee management. Plus, with seamless time tracking and invoicing features, QuickBooks empowers you to stay organized and efficient. Explore QuickBooks payroll today.