PAYROLL TAX RATES
Oregon payroll tax rates
Unemployment tax, income tax withholding, minimum wage and paid leave in Oregon, each with its effective date and the agency page it comes from.
Unemployment insurance
Checked on October 5, 2026.
Income tax withholding
Checked on October 5, 2026.
Minimum wage
| Item | Value | Effective | Source |
|---|---|---|---|
| Minimum wage | $15.55 | Oregon BOLI, Oregon Minimum Wage (opens in a new tab) | |
| Portland metro (inside the Metro urban growth boundary) | $16.80 | Oregon BOLI, Oregon Minimum Wage (opens in a new tab) | |
| Standard (Benton, Clatsop, Columbia, Deschutes, Hood River, Jackson, Josephine, Lane, Lincoln, Linn, Marion, Polk, Tillamook, Wasco, Yamhill; Clackamas, Multnomah and Washington outside the boundary) | $15.55 | Oregon BOLI, Oregon Minimum Wage (opens in a new tab) | |
| Non-urban (Baker, Coos, Crook, Curry, Douglas, Gilliam, Grant, Harney, Jefferson, Klamath, Lake, Malheur, Morrow, Sherman, Umatilla, Union, Wallowa, Wheeler) | $14.55 | Oregon BOLI, Oregon Minimum Wage (opens in a new tab) | |
| Tipped employees, cash wage | $15.55 | Oregon BOLI, Oregon Minimum Wage (opens in a new tab) | |
| Rises with inflation | Yes | Oregon BOLI, Minimum wage increase schedule (opens in a new tab) | |
| Local rates | No city or county minimum wages: BOLI publishes only the three state rates. Work inside the Metro urban growth boundary gets the Portland metro rate. | Oregon BOLI, Oregon Minimum Wage (opens in a new tab) |
Checked on October 5, 2026.
Paid family and medical leave
Paid Leave Oregon
| Item | Value | Effective | Source |
|---|---|---|---|
| Agency | Oregon Employment Department, Paid Leave Oregon (opens in a new tab) | Oregon DOR, 2026 Combined Payroll Tax Report Instruction Booklet (150-211-155-2, PDF) (opens in a new tab) | |
| Status | Contributing | Oregon DOR, 2026 Combined Payroll Tax Report Instruction Booklet (150-211-155-2, PDF) (opens in a new tab) | |
| Total rate | 1% | Paid Leave Oregon, Employers Overview (opens in a new tab) | |
| Employee share | 0.6% | Paid Leave Oregon, Employers Overview (opens in a new tab) | |
| Employer share | 0.4% | Paid Leave Oregon, Employers Overview (opens in a new tab) | |
| Wage cap | $184,500 | OED, Current Tax and Contribution Rates (opens in a new tab) | |
| Small employers | 24 or fewer employees, counted in all states: no employer shareCounted as the average of monthly employee counts in the previous calendar year | Paid Leave Oregon, Employers Overview (opens in a new tab) |
Checked on October 5, 2026.
Workers' compensation
| Item | Value | Effective | Source |
|---|---|---|---|
| Required | From the first employee | Oregon DCBS Workers' Compensation Division, Workers' compensation insurance overview (opens in a new tab) | |
| State fund | SAIF Corporation (opens in a new tab) | Oregon DCBS Workers' Compensation Division, Workers' compensation insurance overview (opens in a new tab) |
Checked on October 5, 2026.
What a paycheck costs the employer in Oregon
Employer taxes and contributions on one employee's pay in Oregon, per check and for the year, at the rates a new employer pays. State rates are the ones on this page; federal rates are the ones on the federal payroll tax rates page.
Pay$
Pay frequency
- Employer taxes and contributions per check
- $255.00
- First check of the year
- Cost per check
- $2,562.69
- Pay included, first check
- Cost per year
- $66,232.80
- Pay included
Later checks cost less once pay passes a wage base: the year's last check costs $2,493.46, pay included.
| Item | Rate | First check | Per year | Source |
|---|---|---|---|---|
| Social Security, employer share | 6.2% on the first $184,500 | $143.08 | $3,720.00 | IRS, Publication 15 (2026), Employer's Tax Guide (opens in a new tab) |
| Medicare, employer share | 1.45% of all pay | $33.46 | $870.00 | IRS, Publication 15 (2026), Employer's Tax Guide (opens in a new tab) |
| Federal unemployment (FUTA) | 0.6% on the first $7,000After the full 5.4% credit. Employers in a credit reduction state pay more. | $13.85None after check 4 | $42.00 | IRS, Publication 15 (2026), Employer's Tax Guide (opens in a new tab) |
| Oregon unemployment | 2.4% on the first $56,7002.4%, the Tax Schedule 3 base rate, until the employer qualifies for an experience rate | $55.38None after check 25 | $1,360.80 | OED, Current Tax and Contribution Rates (opens in a new tab) |
| Paid Leave Oregon, employer share | 0.4% on the first $184,500Small employers may owe less or none; see Paid family and medical leave above | $9.23 | $240.00 | Paid Leave Oregon, Employers Overview (opens in a new tab); OED, Current Tax and Contribution Rates (opens in a new tab) |
| Employer taxes and contributions | $255.00 | $6,232.80 | ||
| Pay | $2,307.69 | $60,000.00 | ||
| Pay plus employer costs | $2,562.69 | $66,232.80 |
Checked on October 5, 2026. Shows one employee's pay for a full calendar year, every check at the rates in force on October 13, 2026, with all pay subject to these taxes, the new employer rates and the full employer shares the law sets. An employer may choose to pay an employee's share too. Benefits and other costs are not included.
Common questions
A new employer pays 2.4%, the Tax Schedule 3 base rate, until the employer qualifies for an experience rate. The tax applies to the first $56,700 of each employee's wages a year. The base is reset each year from average wages.
Yes: 4.75% to 9.9%. Supplemental wages: 8% optional flat rate.
$15.55 an hour. Rates by region or employer: $14.55 to $16.80. See the table above.
Yes: Paid Leave Oregon, 1% in total.
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Payroll taxes calculated, deposited and filed in every state
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Rates in other states
- Alabama
- Alaska
- Arizona
- Arkansas
- California
- Colorado
- Connecticut
- Delaware
- District of Columbia
- Florida
- Georgia
- Hawaii
- Idaho
- Illinois
- Indiana
- Iowa
- Kansas
- Kentucky
- Louisiana
- Maine
- Maryland
- Massachusetts
- Michigan
- Minnesota
- Mississippi
- Missouri
- Montana
- Nebraska
- Nevada
- New Hampshire
- New Jersey
- New Mexico
- New York
- North Carolina
- North Dakota
- Ohio
- Oklahoma
- Pennsylvania
- Rhode Island
- South Carolina
- South Dakota
- Tennessee
- Texas
- Utah
- Vermont
- Virginia
- Washington
- West Virginia
- Wisconsin
- Wyoming
Sources
The agency page or document behind each figure, as checked.
- OED, File/Pay/Amend Payroll Taxes, Contributions (opens in a new tab)
- OED, Current Tax and Contribution Rates (opens in a new tab)
- ORS 657.095, Payroll (2025 edition) (opens in a new tab)
- Oregon DOR, 2026 Combined Payroll Tax Report Instruction Booklet (150-211-155-2, PDF) (opens in a new tab)
- OED, Employer, Employee and Wages (UI Pub 205, PDF) (opens in a new tab)
- OED, How UI Tax Rates Are Determined (UI Pub 214, PDF) (opens in a new tab)
- US DOL OUI, FUTA Credit Reductions (updated September 11, 2026) (opens in a new tab)
- Oregon DOR, Payroll formulas, tables and deductions (opens in a new tab)
- Oregon DOR, Oregon Withholding Tax Formulas, effective January 1, 2026 (150-206-436, Rev. 12-31-25, PDF) (opens in a new tab)
- Oregon DOR, 2026 Form OR-W-4, Oregon Withholding Statement and Exemption Certificate (150-101-402, Rev. 07-28-25, PDF) (opens in a new tab)
- City of Portland Revenue Division, Personal Income Tax Filing and Payment Information (Metro SHS and Multnomah County PFA) (opens in a new tab)
- Oregon BOLI, Oregon Minimum Wage (opens in a new tab)
- Oregon BOLI, Minimum wage increase schedule (opens in a new tab)
- Paid Leave Oregon, Employers Overview (opens in a new tab)
- Oregon DCBS Workers' Compensation Division, Workers' compensation insurance overview (opens in a new tab)
- IRS, Publication 15 (2026), Employer's Tax Guide (opens in a new tab)
General information, not legal or tax advice. Rules change; confirm current requirements with the relevant agency or your advisor. You remain responsible for your employment taxes.