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.