Oregon Payroll Taxes: 2026 Employer Guide
Quick Facts
Key payroll tax details at a glance.
State Income Tax
Progressive (up to 9.90%)
SUI New Employer Rate
2.4%
SUI Wage Base
$56,700 per employee
SUI Rate Range
0.9% to 5.4%
Employee SUI Contribution
No
Local Taxes
Yes (Medium complexity)
What Makes Oregon Payroll Complex
Oregon has no sales tax, but the state makes up for it with one of the highest income tax rates in the country (top rate 9.9%) and one of the highest SUI wage bases at $56,700. Employers also need to handle the Statewide Transit Tax withholding and Paid Leave Oregon contributions.
The Paid Leave Oregon program requires employers to split contributions with employees based on company size. Portland-area employers face additional local taxes on high earners, though most of these are handled at the individual filing level rather than through employer withholding. Oregon's combined payroll burden is among the highest in the nation.
This guide breaks down each of Oregon's employer obligations: registration requirements, 2026 tax rates and wage bases, filing deadlines, and the compliance pitfalls that catch expanding startups off guard. Whether you're hiring your first Oregon employee or managing a growing remote team, everything you need to stay compliant is here.
Oregon State Income Tax
Withholding rates, brackets, and forms.
Tax Type
Progressive
Top Rate
9.90%
Withholding Form
OR-W-4
Oregon Unemployment Insurance (SUI)
Employer rates, wage bases, and contribution details.
New Employer Rate
2.4%
Wage Base
$56,700 per employee
Rate Range
0.9% to 5.4%
Employee Contribution
—
Oregon SUI (State Unemployment Insurance) is an employer-paid tax that funds unemployment benefits for workers who lose their jobs. It is administered by the Oregon Employment Department. Registration: Employers must register with the Oregon Employment Department as soon as they hire their first Oregon employee. Registration can be completed online.
Oregon Additional Employer Taxes
Other state-mandated payroll contributions.
Statewide Transit Tax
0.1%
Paid Leave Oregon
1% total (0.4% employer, 0.6% employee for 25+ employees)
Oregon Local Taxes
City and county-level tax obligations.
Complexity
Medium
Portland-area has Metro Supportive Housing Services Tax (1% on income over $125,000) and Multnomah County Preschool for All tax. Generally handled on individual returns.
Oregon Compliance Checklist
Deadlines, filing requirements, and official resources.
Key Deadlines
Withholding deposits
Due Varies by liability
Quarterly returns (Q1)
Due April 30
Quarterly returns (Q2)
Due July 31
Quarterly returns (Q3)
Due October 31
Quarterly returns (Q4)
Due January 31
Annual reconciliation
Due January 31
W-2 state copies
Due January 31
New hire report
Due Within 20 days of start date
How Warp Handles Oregon Payroll
Warp is the only AI-native HR & Payroll platform built for ambitious companies. Instead of clicking through clunky dashboards or Oregon's .gov websites for taxes, Warp's AI agents open your Oregon tax accounts, file every payroll form, and resolve every tax notice automatically.
What Warp handles for Oregon employers:
- Oregon tax account registration and setup
- Automated income tax withholding calculations and deposits
- SUI registration and quarterly filings
- Statewide Transit Tax setup and remittance
- Paid Leave Oregon setup and remittance
- Local tax registration and compliance
- Annual W-2 and reconciliation filing
- Tax notice resolution directly with Oregon agencies, so you never spend hours on hold
Every Warp customer gets a dedicated Account Manager and Benefits Advisor included to guide them through payroll setup, multi-state expansion, and benefits selection. You'll never visit a government website, negotiate with tax agencies, or pay an accountant $150 per quarterly filing.
If you don't want to deal with navigating Oregon .gov portals, check out a demo of Warp to see how we can help you stop worrying about compliance and get back to building.
Tax data last verified: March 12, 2026