Self-employed taxes and LLC costs in Oregon, 2026
Oregon has no sales tax and makes up for it with one of the steepest income taxes on self-employment profit in the country.
Total tax on this income in 2026
$23,879
Put aside 28% of each payment · $5,970 per quarter
| Self-employment tax (15.3%) | $12,010 |
| Federal income tax | $5,790 |
| Oregon income tax | $6,079 |
| QBI deduction used | $12,579 |
| Effective rate on all income | 28.1% |
With an S corp election and a $34,000 salary, about $2,917 less tax (check it).
Computed by Radif Partners from IRS and Oregon agency documents read on October 15, 2026 · How we calculate
Oregon taxes business profit on the owner's return at 4.75 % to 9.9 %, and the 8.75 % bracket starts at only $11,400 of taxable income for a single filer, so the state share is high from the start. A single filer with $75,000 of profit owes about $5,266 to Oregon and $20,761 in total with federal income tax and self-employment tax, about 28 % of profit; at $120,000 the state share is $8,925. An LLC costs $100 to form and $100 for each annual renewal. An S corporation pays a $150 minimum excise tax, and its owner's salary carries unemployment tax at 2.4 % up to $56,700 in the calculator; with a $50,000 salary on $120,000 of profit, the election saves about $4,077 a year. In the Portland area, city, county, regional and transit taxes come on top of all this.
Oregon at a glance, 2026
| LLC filing fee | $100 |
| Annual Report / Renewal | $100 a year |
| Income tax | 4.75 % to 9.9 % |
| S corporation election | followed by the state |
| Tax on $75,000 of profit (single) | $20,761 in all, $5,266 to Oregon |
The top rate of 9.9 % begins at $125,000 of taxable income for a single filer, a level many established consultants pass (Oregon DOR, 2026 OR-ESTIMATE). Below it, the 8.75 % bracket covers most of a freelance income. The standard deduction is small, $2,900 single, and the personal exemption of $260 is a credit that disappears above $100,000 of federal AGI for a single filer. These are the department's indexed figures for 2026, published in October 2025, and the final return amounts may differ slightly. On $200,000 of profit, Oregon takes about $16,099.
The same profit in another state
Oregon minus Washington
$7,299
| Oregon | $7,299 |
| Washington | $0 |
The Columbia River question
Washington, across the river, has no personal income tax, and the comparison above shows the difference on the same profit. It is not a free pass for Portland-area workers living in Vancouver: Oregon taxes nonresidents on income from work performed in Oregon, so a Washington resident who works on site for Oregon clients still files there. The Washington page covers that side, including its business and occupation tax on gross receipts.
Portland, Multnomah County and the transit districts
Inside the Portland area, a self-employed person can owe the City of Portland Business License Tax (2.6% of net income), the Multnomah County Business Income Tax (2%), personal income taxes for Metro supportive housing and Multnomah's Preschool for All above high income thresholds, and the TriMet transit tax of 0.8237% on net self-employment earnings. Each has its own exemptions; the Portland tax, for instance, skips businesses below a gross receipts threshold that rose for 2026 (Portland Revenue Division, business taxes). The Portland page runs the full stack, and Eugene and Springfield have their own transit tax.
Estimates, the excise tax and the PTE-E
Quarterly estimates are due when you expect to owe $1,000 or more after withholding and credits, and the required payment is the lesser of 90% of this year's tax or 100% of last year's, with no higher bar for high earners (OR-ESTIMATE). An S corporation files an excise tax return and pays the $150 minimum, which does not pass to the owners. Every entity type, sole proprietors included, also owes the Corporate Activity Tax once Oregon commercial activity passes $1,000,000: $250 plus 0.57% of the excess after a subtraction (Oregon DOR, Corporate Activity Tax).
The pass-through entity elective tax lets an S corporation or partnership pay 9% on the first $250,000 of distributive proceeds and 9.9% above, so owners can deduct state tax federally through the entity; a 2026 law extended it through tax years beginning before 2028, and for 2026 the first two estimated payments are both due June 15 (Oregon DOR, PTE-E). The LLC vs S corp calculator handles the payroll part.
Oregon income tax brackets
| Taxable income, single | Rate | Taxable income, joint | Rate |
|---|---|---|---|
| $0 to $4,550 | 4.75 % | $0 to $9,100 | 4.75 % |
| $4,550 to $11,400 | 6.75 % | $9,100 to $22,800 | 6.75 % |
| $11,400 to $125,000 | 8.75 % | $22,800 to $250,000 | 8.75 % |
| over $125,000 | 9.9 % | over $250,000 | 9.9 % |
City and county taxes on business income in Oregon
| Place | Tax | Rate | Who pays |
|---|---|---|---|
| City of Portland | Business License Tax (BLT) | 2.6% | Exempt if gross receipts from all business everywhere are under $75,000 for tax years beginning in 2026 ($50,000 before 2026; $100,000 from 2027). Owner's compensation deduction up to 75% of net business income, capped at $160,500 per owner for tax years from 2025 (2026 cap not read). |
| Multnomah County | Business Income Tax (MCBIT) | 2% | Exempt if gross receipts from all business are under $100,000. Owner's compensation deduction up to 75% of net business income, capped at $158,500 per owner for tax years from 2025 (2026 cap not read). |
| Metro (Portland region: parts of Clackamas, Multnomah, Washington counties) | Supportive Housing Services (SHS) Personal Income Tax | 1% | 2026: over $128,000 single/MFS, over $205,000 joint/HOH/QSS ($125,000/$200,000 for 2021-2025; $132,000/$211,000 for 2027); now inflation-indexed |
| Metro (Portland region) | Supportive Housing Services (SHS) Business Income Tax | 1% | Gross receipts of $5,000,000 or less exempt; sole proprietors and disregarded entities exempt (they pay the SHS personal tax) |
| Multnomah County | Preschool for All (PFA) Personal Income Tax | 1.5% | 1.5% over $125,000 single / $200,000 joint, plus an additional 1.5% (3% total) over $250,000 single / $400,000 joint. Thresholds not indexed. The scheduled 0.8% increase is now set for 2028 (not 2026). |
| TriMet District (Portland area) | TriMet transit self-employment tax | 0.8237% | $400 exclusion of net self-employment earnings (per DOR form instructions for the parallel LTD tax; not re-read for OR-TM) |
| Lane Transit District (Eugene/Springfield) | LTD transit self-employment tax | 0.8% | Net self-employment earnings over $400; one $400 exclusion |