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Metro and Multnomah County Tax – Required Employer Withholding

by | Dec 1, 2021 | Taxes | 0 comments

In 2020 voters approved two new income taxes effective January 1, 2021:

  • The Portland Metro Supportive Housing Services Income Tax
    • Income tax on net income of a business with gross receipts above $5M
    • Personal income tax of 1% on taxable income above $125K or single filers and $200K for married filing jointly
  • The Multnomah County Preschool for All Income Tax
    • Single taxpayers: All OR taxable income over $125K is taxed at 1.5%, income above $250K is taxed at 3%
    • Joint filers: All OR taxable income over $200K is taxed at 1.5%, income above $400K is taxed at 3%
    • In 2026 the tax rates increase by .8%

Beginning January 1, 2022 employers are required to withhold both taxes for all subject employees earning $200,000 or more during the calendar year, unless the employee opts out. 

Employers can remit payments and/or register at https://pro.portland.gov.  Any employers using a payroll provider will want to confirm the provider will be handling the withholding, reporting and payment of these taxes.