Oregon Hourly Paycheck Calculator
Your hourly rate and hours in, your take-home pay out. Overtime is paid at 1.5× your rate; tips you report are taxed like wages.
| Per paycheck | Amount | Per year |
|---|---|---|
| Gross pay | $1,600.00 | $41,600.00 |
| Federal income tax · withheld | −$108.15 | −$2,812.00 |
| Social Security (6.2%) | −$99.20 | −$2,579.20 |
| Medicare (1.45%) | −$23.20 | −$603.20 |
| Oregon income tax · withheld | −$108.00 | −$2,808.00 |
| Oregon statewide transit tax · 0.1%, no cap | −$1.60 | −$41.60 |
| Paid Leave Oregon · your 60% share | −$9.60 | −$249.60 |
| Take-home pay | $1,250.25 | $32,506.40 |
How the federal income tax was worked out
| Pay subject to income tax, for the year · $1,600.00 × 26 paychecks | $41,600.00 |
| Minus the IRS withholding allowance · Pub 15-T Worksheet 1A, line 1g | −$8,600.00 |
| Adjusted yearly wage | $33,000.00 |
| Tax from the IRS yearly table · standard table | $2,812.00 |
| Federal income tax per paycheck · divided by 26 | $108.15 |
IRS Publication 15-T (2026), Worksheet 1A — the percentage method payroll software uses for a Form W-4 from 2020 or later. Your employer's figure can differ by a few cents because of rounding.
How the Oregon income tax was worked out
| Pay subject to Oregon tax, for the year · this paycheck × 26, after pre-tax 401(k) and health benefits | $41,600.00 |
| Minus federal income tax withheld · your federal income tax for the year | −$2,812.00 |
| Minus Oregon standard deduction · single, fewer than 3 allowances | −$2,910.00 |
| Oregon base wage (BASE) | $35,878.00 |
| Tax from the Oregon formula · $941 + 8.75% of the amount over $11,400 (formula for pay under $50,000); single, fewer than 3 allowances | $3,082.83 |
| Minus OR-W-4 allowance credit · 1 × $263 | −$263.00 |
| Yearly Oregon withholding · rounded to the nearest dollar | $2,820.00 |
| Oregon income tax this paycheck · ÷ 26, rounded to the nearest dollar | $108.00 |
Hourly pay in Oregon
Oregon's minimum wage depends on where you work. From July 1, 2026 it is $16.80 in the Portland metro area, $15.55 standard, and $14.55 in non-urban counties. There is no lower tipped wage: tip credits are illegal in Oregon, so tips come on top of the full minimum.
Overtime. Time-and-a-half for hours over 40 in a workweek. Workers in manufacturing also get overtime after 10 hours in a day.
Every hour counts. The transit tax and Paid Leave Oregon are percentages of your wages, so overtime and extra shifts raise them along with your pay. Tips count as wages for Paid Leave Oregon.
Because hours change from week to week, your withholding changes too: a week with lots of overtime is withheld as if you earned that much every week, so more comes out. It usually evens out when you file your return.
What comes out of a Oregon paycheck
- Federal income tax withholding — worked out from your pay and your Form W-4, using the IRS tables for 2026.
- Social Security — 6.2% of your pay, up to $184,500 of pay in 2026. Above that, it stops for the rest of the year.
- Medicare — 1.45% of all your pay, plus 0.9% on pay above $200,000 in the year.
An Oregon paycheck usually has three state lines:
- Oregon income tax — worked out with the Department of Revenue's formula. Your employer takes your yearly pay, subtracts part of the federal income tax withheld (up to $8,750 a year) and the Oregon standard deduction ($2,910 single, $5,820 married), applies rates from 4.75% to 9.9%, then takes off $263 for each allowance on your OR-W-4.
- Statewide transit tax: 0.1% of your wages ($1 per $1,000), with no yearly cap. It comes out even when no income tax does.
- Paid Leave Oregon — the 1% contribution is split, and you pay 60% of it: 0.6% of your wages ($6 per $1,000), on pay up to $184,500 for the year.
Open "How the Oregon income tax was worked out" under the result to see each step. Oregon's formula needs the federal tax withheld; we estimate it from your federal W-4 filing status.
Tips and overtime in 2026
New federal deductions apply for 2025 through 2028: up to $25,000 for qualified tips, and up to $12,500 ($25,000 for joint filers) for the extra "half" of time-and-a-half overtime. Both phase out above $150,000 of income ($300,000 joint).
These are deductions on your tax return. Your employer still takes Social Security and Medicare out of tips and overtime, and still withholds income tax unless you tell it otherwise. If you expect to claim them, you can put the expected amount in Step 4(b) of your W-4 (and in the Step 4(b) box above) so less income tax is withheld during the year.
Other Oregon calculators
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Sources
- IRS Publication 15-T (2026), Federal Income Tax Withholding Methods — Worksheet 1A and the annual percentage-method tables
- IRS Publication 15 (2026), Employer's Tax Guide — Social Security and Medicare rates
- Social Security Administration — 2026 wage base of $184,500
- IRS — tips and overtime deductions
- Oregon Department of Revenue — Oregon Withholding Tax Formulas, 150-206-436 (effective January 1, 2026) — formulas, $2,910/$5,820 standard deduction, $8,750 federal-tax cap and phase-out, $263 per allowance, examples 1–4, 8% rate with no withholding statement
- Oregon Department of Revenue — 2026 Form OR-W-4 instructions (150-101-402-1) — filing statuses; allowances not applied above $100,000 (single) or $200,000 (married); 8% with no withholding statement
- Oregon Department of Revenue — Statewide Transit Tax — 0.1% of wages; withheld even when no income tax is withheld
- Oregon Employment Department — 2026 UI tax and Paid Leave Oregon contribution rates — Paid Leave Oregon 1%, employees pay 60%; $184,500 wage limit in 2026
- Paid Leave Oregon — Contributions calculator — employees pay 60% of the 1% rate; $184,500 for 2026
- Paid Leave Oregon — Common questions — section 125 payments are not wages; employers with fewer than 25 employees still collect the employee share
- City of Portland Revenue Division — Personal income tax withholding (Metro SHS and Multnomah County PFA) — withheld for workers earning $200,000 or more: Metro 1% over $200,000; PFA 1.5% over $200,000 and 3% over $400,000; employees may opt in or out
- Oregon Department of Revenue — TriMet Transit Payroll Tax — employer paid
- Oregon Department of Revenue — Lane County Transit District Payroll Tax — employer paid
- Oregon Bureau of Labor and Industries (BOLI) — Oregon minimum wage — July 1, 2026–June 30, 2027: $16.80 Portland metro, $15.55 standard, $14.55 non-urban; tip credits are illegal
- BOLI — Oregon minimum wage schedule — July 1, 2025–June 30, 2026: $16.30 / $15.05 / $14.05
- BOLI — Overtime — 1.5× over 40 hours a week; manufacturing: overtime after 10 hours in a day
- BOLI — Paychecks — paydays no more than 35 days apart; final paycheck deadlines
- BOLI — Wage claim — complaints through BOLI's Complaint Resolution Center
- IRS Publication 15-T (2026) — Worksheet 1A — used to estimate the federal tax withheld that Oregon's formula subtracts
Questions
How is Oregon income tax worked out on my paycheck?
Your employer turns your pay into a yearly amount, subtracts the federal income tax withheld (up to $8,750) and the Oregon standard deduction, applies Oregon's rates of 4.75% to 9.9%, subtracts $263 for each OR-W-4 allowance, and divides by the number of paychecks.
How much is taken out of a $1,000 paycheck in Oregon?
For a single filer paid every two weeks with nothing else on the W-4, a $1,000 paycheck has about $38.08 of federal income tax, $62.00 of Social Security and $14.50 of Medicare taken out, $62.00 of Oregon income tax, leaving $816.42. Enter your own details in the calculator for your exact figure.
What is $20 an hour after taxes in Oregon?
Working 40 hours a week and paid every two weeks, $20 an hour is $1,600.00 before tax and about $1,250.25 after tax per paycheck — $32,506.40 a year — for a single filer with a standard W-4.
What is the statewide transit tax on my pay stub?
A 0.1% tax on your wages that pays for public transit across Oregon. It has no cap, and it is withheld even if no Oregon income tax is.
How much is Paid Leave Oregon?
You pay 60% of the 1% contribution, which is 0.6% of your wages, up to $184,500 of pay in 2026. Workers at employers with fewer than 25 employees pay the same share.
What is the minimum wage in Oregon in 2026?
From July 1, 2026: $16.80 in the Portland metro area, $15.55 standard, and $14.55 in non-urban counties. Tips can't count toward it.
When do I get my last paycheck in Oregon?
If you are fired or laid off, by the end of the next business day. If you quit with 48 hours' notice, on your last day; with less notice, within 5 business days or on the next payday, whichever comes first.