Oregon Department of Revenue : Sales Tax in Oregon : Businesses : State of Oregon (2024)

FAQs

Oregon Department of Revenue : Sales Tax in Oregon : Businesses : State of Oregon? ›

About sales tax in Oregon. Oregon doesn't have a general sales or use/transaction tax.

Oregon has a 6.60 percent to 7.60 percent corporate income tax rate and levies a gross receipts tax. Oregon does not have a state sales tax and does not levy local sales taxes. Oregon's tax system ranks 24th overall on our 2023 State Business Tax Climate Index.

Collectively, these taxes are known as the Oregon corporate excise and income tax (or CET). C corporations pay a 6.6% tax rate on taxable income up to $1 million, a 7.6% rate on business income over $1 million, plus an additional $66,000 fee.

Oregonians have had many opportunities to vote to have a sales tax, but except for very special forms of sales tax, always voted against them. Many of the things that in other states would be paid for by a sales tax are paid for by personal income tax and property tax.

Oregon doesn't have a general sales or use/transaction tax. However, Oregon does have a vehicle use tax that applies to new vehicles purchased outside of the state. The tax must be paid before the vehicle can be titled and registered in Oregon.

If you have employees, you are responsible for several federal, state, and local taxes. As an employer, you must withhold Federal income tax withholding, social security and Medicare taxes, and Federal Unemployment Tax Act (FUTA) taxes.

By default, LLCs themselves don't pay income taxes, only their members do. You'll report and pay your share of the LLC's income on your personal tax return. You must file any returns and pay applicable taxes to the Oregon Department of Revenue (DOR).

The Portland Business License Tax is 2.2% of your net business income. Portland businesses are required to file a Combined Tax Return report each year to determine the amount of the license tax.

(1) A taxpayer is doing business when it engages in any profit-seeking activity in the State of Oregon.

Why am I getting a letter from the Oregon Department of Revenue? ›

We accept most tax returns as filed, but to ensure the accuracy of voluntary compliance, we audit a variety of returns each year. Once a return is assigned to one of our auditors, an audit appointment or correspondence letter is sent. This letter will ask you to submit information required for the audit.

A Business Identification Number (BIN) is a state tax id number issued by business licensing agencies in Oregon. It's typically used for reporting payroll and taxes at the state level. Your Oregon BIN is an 8-digit number with a dash. (For example, 1234567-8).

​​You can check the status of your refund on our website (Where's My Refund?) or through our automated phone system at 503-378-4988 or toll-free at 800-356-4222. To check your refund status, you'll need: ​​The Social Security number of the first person listed on your return.

Oregon sales tax details

The Oregon (OR) sales tax rate is currently 0%. Though there is no state sales tax, Oregon was noted in Kiplinger's 2011 10 Tax-Unfriendly States for Retirees due to having one of the highest tax rates on personal income in the nation.

Oregon is a tax-free state and doesn't have a sales tax

However, sales tax may be imposed on online purchases in exceptional cases. The exception is for airline tickets purchased online, in which case you will be charged federal tax.

Oregon has a progressive income tax that ranks among the highest in the nation. The average effective property tax rate is about average, though, ranking as the 26th-highest rate in the country. Oregon has no sales tax.

If you're just a foreign LLC doing business in the state without a physical location in the state, you only have to pay the corporate excise tax. If your LLC brought in $1 million or less, you're taxed at a 6.6% rate—anything above $1 million is taxed at the 7.6% rate.

In addition to federal tax requirements, Oregon employers have to withhold state personal income taxes, unemployment insurance, workers' compensation, transit taxes, and paid leave. The state income tax is levied at a progressive rate and all payroll tax filings are due quarterly.

Oregon assesses income tax at rates up to 9.9%, and doesn't have a general sales tax. Oregon offers tax deductions and credits to reduce your tax liability, including deductions for qualifying medical and dental expenses and real estate taxes. Tax credits are provided for political contributions, among other things.

Oregon aims to be a small business-friendly state. However, the number of complex regulations and costly requirements a ecting small businesses continues to grow. During the 2023 legislative session, the O ce of Small Business Assistance tracked 200 bills a ecting small business, 60 of which passed into law.