Oregon
Taxes and business formation • USA 2025–2026
TL;DR
Oregon at a glance — 2026 figures
State filing fees and tax position for individuals and companies registered in Oregon.
| Parameter | Value |
|---|---|
| Personal income tax | See the income tax section below |
| LLC formation fee | $100.00 |
| LLC annual report fee | $100.00 |
| LLC annual report deadline | Company anniversary date |
| LLC dissolution fee | $100.00 |
| Corporation formation fee | $100.00 |
| Corporation annual report fee | $100.00 |
State filing fees are set by the Secretary of State and change without notice — the official source is linked in each section below. Federal figures for tax year 2026 are on the 2026 tax cheat sheet.
Updated: August 2026
LLC in Oregon
Corporation in Oregon
Tax system of Oregon
Income Tax
Oregon levies a progressive personal income tax with one of the highest top rates in the U.S. For 2024–2025, rates range from 4.75% to 9.9% depending on income level. In addition, residents of Multnomah County (Portland) pay a regional surtax of up to 3%. Wages, business income, rental income, capital gains, interest, dividends, and other income are all subject to taxation. The state does not provide a standard deduction like the federal government, but offers a number of individual and family deductions.
Sales Tax
One of Oregon's key advantages is that there is no sales tax at all, either at the state or local level. This makes shopping in Oregon attractive for both consumers and certain types of business, particularly retail. However, companies selling goods or services outside the state (into states that do have sales tax) may be required to collect and remit sales tax to other jurisdictions. Our firm provides consultations on economic nexus, registration in other states, setting up sales tax calculations for interstate commerce, and assistance with filing Sales Tax returns in other states when necessary.
Property Tax
Property tax in Oregon is levied at the county and school district level. The average effective rate is about 1.04% of market value, which is nearly in line with the U.S. average. Taxation is based on a limited assessed value regulated by state law (Measure 50), which can restrain tax growth even when a property's market value increases. Commercial real estate requires annual filing of reports on the value of tangible personal property.
Business Taxes
Oregon imposes a Corporate Income Tax on C-corporations with progressive rates: • 6.6% on profits up to $1 million • 7.6% on profits above $1 million. In addition, since 2020 the Corporate Activity Tax (CAT) has been in effect — a tax on companies' gross receipts regardless of profitability: the CAT rate is 0.57% on gross receipts exceeding $1 million, plus a flat amount of $250. All corporations and LLCs are required to file an Annual Report with the Oregon Secretary of State. It is due annually, within the month of the company's registration. Our firm provides services for business registration in Oregon, preparation and filing of the Annual Report, calculation of the corporate tax and CAT, and structuring LLCs/S-corporations with tax implications and planning in mind.
Excise Taxes
Oregon levies excise taxes on fuel, alcohol, tobacco products, cannabis, and certain environmental fees. There is also a heavy vehicle tax, as well as fees on packaging manufacturers and electric power distributors.
Estate / Inheritance Tax
Oregon is one of the few states that still has a state estate tax. It applies to estates exceeding $1 million. The rate is progressive — from 10% to 16%.
Favorable Tax Conditions
Despite the high personal and corporate income tax rates, Oregon offers a number of significant advantages: • No sales tax at all, which makes it beneficial for shoppers and retail companies. • Limits on property tax growth thanks to Measure 5 and Measure 50. • A high CAT threshold (gross receipts above $1 million) reduces the burden on small business. • Numerous tax incentives for startups, sustainable and eco-friendly manufacturers, agriculture, and IT companies.
Compared to Other States
The main advantage compared with other states is the absence of a sales tax. Personal income tax is among the highest in the country. The Corporate Activity Tax replaces a traditional gross receipts tax and requires careful calculation. Property tax is capped in its growth rate but can still be significant in urban counties. An estate tax applies, unlike in most states.
Frequently asked questions
Does Oregon have a personal income tax?+
Yes. Oregon levies a personal income tax on residents. The current rates and brackets are set out in the income tax section on this page, with a link to the state tax authority — rates are revised by the legislature, so always check the official source before filing.
How much does it cost to register an LLC in Oregon?+
The state filing fee in Oregon is $100.00. On top of that you need a registered agent with a physical address in the state, and FinTaxes charges from $299 for the formation service itself.
When is the annual report due for a Oregon LLC?+
The Oregon annual report fee is $100.00, due Company anniversary date. Missing it typically triggers a late penalty and, if left unresolved, administrative dissolution of the company.
Do I need to live in Oregon to open an LLC there?+
No. You do not need to live in Oregon — or in the United States at all — to own an LLC registered there. Non-residents can form and own a US LLC; what the state requires is a registered agent with a physical in-state address. Your own tax residency is a separate question and decides which returns you file.
Can FinTaxes file my Oregon state return remotely?+
Yes. FinTaxes prepares and e-files federal and Oregon state returns entirely remotely, for clients anywhere in the US or abroad, as an Authorized IRS e-file Provider.
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