# Oregon State Income Tax Withholding

Reference Number: NFC-24-1713896485

Published: May 13, 2024

Effective: Pay Period 07, 2024

## Summary

The income tax withholding formula for the State of Oregon includes the following changes:

- The standard deduction amount for Single filers claiming less than 3 allowances has increased from $2,605 to $2,745.
- The standard deduction amount for Single filers claiming 3 or more allowances has increased from $5,210 to $5,495.
- The standard deduction amount for Married filers has increased from $5,210 to $5,495.
- The annual tax credit amount, per exemption, has increased from $236 to $249.
- The annualized deduction for Federal tax withheld has increased from a maximum of $7,800 to $8,250.
- The tax tables have changed for all filers.

No action on the part of the employee or the personnel office is necessary.

## Tax Formula

State Abbreviation: |
OR |

State Tax Withholding State Code: |
41 |

Acceptable Exemption Form: |
OR-W-4 or W-4 (see the Additional Information section) |

Basis for Withholding: |
State or Federal Exemptions (see the Additional Information section) |

Acceptable Exemption Data: |
S/M, Number of Exemptions |

TSP Deferred: |
Yes |

Special Coding: |
None |

Additional Information: |
Employees who have not previously submitted an OR W-4, and have submitted a 2020 or newer Federal Form W-4 or have not previously submitted a prior to 2020 Federal Form W-4, will default to the flat withholding tax rate of eight percent. Employees who have not previously submitted an OR W-4 and have not submitted a 2020 or newer Federal Form W-4, will default to the prior to 2020 Federal Form W-4 submission. |

### Withholding Formula (Effective Pay Period 07, 2024)

- Subtract the nontaxable biweekly Thrift Savings Plan contributions from the gross biweekly wages.
- Subtract the nontaxable biweekly Federal Employees Health Benefits Plan payment(s) (includes dental and vision insurance program and Flexible Spending Account — health care and dependent care deductions) from the amount computed in step 1.
- Add the taxable biweekly fringe benefits (e.g., taxable life insurance) to the amount computed in step 2 to obtain the adjusted gross biweekly wages.
- Multiply the adjusted gross biweekly wages by the number of pay dates in the tax year to obtain the gross annualized wages.
- Subtract the employee's annualized Federal withholding tax from the annualized gross pay to determine annualized taxable wages. The annualized Federal withholding tax to be deducted cannot exceed the maximum amount shown in the following tables based on marital status and the annualized gross pay calculated in step 4:
Note: To calculate the annualized Federal withholding tax, multiply the biweekly Federal income tax withholding by the number of pay dates in the tax year.

#### Single (Regardless of the Number of Exemptions) Tax Withholding Table

If the Amount of Taxable Income Is:

The Maximum Federal Deduction Amount Is:

Over $0 but not over $124,999.99

$8,250

Over $124,999.99 but not over $129,999.99

$6,600

Over $129,999.99 but not over $134,999.99

$4,950

Over $134,999.99 but not over $139,999.99

$3,300

Over $139,999.99 but not over $144,999.99

$1,650

Over $144,999.99

$0

#### Married (Regardless of the Number of Exemptions) Tax Withholding Table

If the Amount of Taxable Income Is:

The Maximum Federal Deduction Amount Is:

Over $0 but not over $249,999.99

$8,250

Over $249,999.99 but not over $259,999.99

$6,600

Over $259,999.99 but not over $269,999.99

$4,950

Over $269,999.99 but not over $279,999.99

$3,300

Over $279,999.99 but not over $289,999.99

$1,650

Over $289,999.99

$0

- Determine the standard deduction allowance by applying the following guideline and subtract this amount using the adjusted taxable wages:
Marital Status:

Standard Deduction:

Single claiming less than three (3) exemptions

$2,745

Single claiming three (3) or more exemptions

$5,495

Married

$5,495

- If the employee's annualized gross wages calculated in step 4 are less than $50,000, calculate the annual tax amount on the adjusted taxable wages using one of the tables below.
#### Single (With Less Than Three Exemptions) Tax Withholding Table

If the Amount of Taxable Income Is:

The Amount of Tax Withholding Should Be:

Over $0 but not over $4,300

$249.00 plus 4.75%

Over $4,300 but not over $10,750

$453.00 plus 6.75% of excess over $4,300

Over $10,750

$888.00 plus 8.75% of excess over $10,750

#### Single (With Three or More Exemptions) or Married Tax Withholding Table

If the Amount of Taxable Income Is:

The Amount of Tax Withholding Should Be:

Over $0 but not over $8,600

$249.00 plus 4.75%

Over $8,600 but not over $21,500

$658.00 plus 6.75% of excess over $8,600

Over $21,500

$1,529.00 plus 8.75% of excess over $21,500

- If the employee's annualized gross wages calculated in step 4 are $50,000 or more, calculate the annual tax amount on the adjusted taxable wages using one of the tables below.
#### Single (With Less Than Three Exemptions) Tax Withholding Table

If the Amount of Taxable Income Is:

The Amount of Tax Withholding Should Be:

Over $0 but not over $10,750

$0.00

Over $10,750 but not over $125,000

$639.00 plus 8.75% of excess over $10,750

Over $125,000

$10,636.00 plus 9.90% of excess over $125,000

#### Single (With Three or More Exemptions) or Married Tax Withholding Table

If the Amount of Taxable Income Is:

The Amount of Tax Withholding Should Be:

Over $0 but not over $21,500

$0.00

Over $21,500 but not over $250,000

$1,280.00 plus 8.75% of excess over $21,500

Over $250,000

$21,274.00 plus 9.90% of excess over $250,000

- Based on the employee's marital status and the annualized gross wages calculated in step 4, reduce the total number of exemptions claimed by the personal allowance shown in the following table (do not reduce exemptions below 0 (zero)):
Marital Status

Annualized Wages

Total Exemptions Claimed

Personal Allowance Reduction

Single

Greater than $100,000

1 or more

1

Married

Greater than $200,000

1

1

Married

Greater than $200,000

2 or more

2

- Multiply the adjusted number of exemptions claimed by $249 and subtract this amount from the annual tax calculated above.
- Divide the annual Oregon tax withholding calculated in step 10 by the number of pay dates in the tax year to obtain the biweekly Oregon tax withholding.

## Resources

To view the updated tax formula, go to the drop-down menu on the National Finance Center (NFC) Home page. Select the tab and select from the section to launch the tax map. Select the desired State from the map provided for the formula.

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