Oregon State Income Tax Withholding
Reference Number: NFC-25-1743009231
Published: April 29, 2025
Effective: Pay Period 06, 2025
Summary
The state income tax withholding formula for the State of Oregon has changed effective January 1, 2025.
- The standard deduction amount for Single filers claiming less than 3 allowances has increased from $2,745 to $2,835.
- The standard deduction amount for Single filers claiming 3 or more allowances has increased from $5,495 to $5,670.
- The standard deduction amount for Married filers has increased from $5,495 to $5,670.
- The annual tax credit amount, per exemption, has increased from $249 to $256.
- The annualized deduction for Federal tax withheld has increased from a maximum of $8,250 to $8,500.
- 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 |
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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 06, 2025)
- 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 $0.00 but not over $124,999.99
$8,500
Over $124,999.99 but not over $129,999.99
$6,800
Over $129,999.99 but not over $134,999.99
$5,100
Over $134,999.99 but not over $139,999.99
$3,400
Over $139,999.99 but not over $144,999.99
$1,700
Over $144,999.99
$0.00
Married (Regardless of the Number of Exemptions) Tax Withholding TableIf the Amount of Taxable Income Is:
The Maximum Federal Deduction Amount Is:
Over $0.00 but not over $249,999.99
$8,500
Over $249,999.99 but not over $259,999.99
$6,800
Over $259,999.99 but not over $269,999.99
$5,100
Over $269,999.99 but not over $279,999.99
$3,400
Over $279,999.99 but not over $289,999.99
$1,700
Over $289,999.99
$0.00
- 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
$2,835
Single claiming three (3) or more exemptions
$5,670
Married
$5,670
- 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 $0.00 but not over $4,400
$256 plus 4.75% over $0.00
Over $4,400 but not over $11,100
$465 plus 6.75% of excess over $4,400
Over $11,100
$917 plus 8.75% of excess over $11,100
Single (With Three or More Exemptions) or Married Tax Withholding TableIf the Amount of Taxable Income Is:
The Amount of Tax Withholding Should Be:
Over $0.00 but not over $8,800
$256 plus 4.75% over $0.00
Over $8,800 but not over $22,200
$674 plus 6.75% of excess over $8,800
Over $22,200
$1,579 plus 8.75% of excess over $22,200
- 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 $11,100
$0.00
Over $11,100 but not over $125,000
$661 plus 8.75% of excess over $11,100
Over $125,000
$10,627 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 $22,200
$0.00
Over $22,200 but not over $250,000
$1,323 plus 8.75% of excess over $22,200
Over $250,000
$21,256 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 page from 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.
Inquiries
For questions about NFC processing, authorized Servicing Personnel Office representatives should contact the NFC Contact Center at or via the customer service portal at ServiceNow Portal for Federated Users and at ServiceNow Portal for Non-Federated Users.