Tax rate used in calculating Oregon state tax for year 2023

Withholding Formula >(Oregon Effective 2023)<

1. Subtract the nontaxable biweekly Thrift Savings Plan contribution from the gross biweekly wages.
   
   

2. Subtract the nontaxable biweekly Federal 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.
   
   

3. Add the taxable biweekly fringe benefits (taxable life insurance, etc.) to the amount computed in step 2 to obtain the adjusted gross biweekly wages.
   
   

4. Multiply the adjusted gross biweekly wages times 26 to obtain the gross annual wages.

5. Subtract the employee’s annualized Federal withholding tax from 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 table based on marital status and the annualized gross pay calculated in Step 4.

Tax Withholding Table Single (Regardless of the Number of Exemptions)
If the Amount of Taxable Income Is:		The Maximum Federal Deduction Amount Is:
Over:	But Not Over:
$         50,000	$   125,000	$      7,800
125,000	130,000	6,250
130,000	135,000	4,700
135,000	140,000	3,100
140,000	145,000	1,550
145,000	and over	0





Tax Withholding Table Married (Regardless of the Number of Exemptions)
If the Amount of Taxable Income Is:		The Maximum Federal Deduction Amount Is:
Over:	But Not Over:
$         50,000	$   250,000	$      7,800
250,000	260,000	6,250
260,000	270,000	4,700
270,000	280,000	3,100
280,000	290,000	1,550
290,000	and over	0





6. Determine the standard deduction allowance by applying the following guideline and subtract this amount from the annual wages.

If the Employee is:	The Standard Deduction is:
Single claiming less than 3 exemptions	>$2,605
Single claiming 3 or more exemptions	$5,210
Married	$5,210<

7. 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:
   

Tax Withholding Table Married or Single (With Three or More Exemptions)
If the Amount of Taxable Income Is:		The Amount of Oregon Tax Withholding Should Be:
Over:	But Not Over:				Of Excess Over:
$         0	$   8,100	$236	plus	4.75%	$      0
8,100	20,400	621	plus	6.75%	8,100
20,400	and over	1,451	plus	8.75%	20,400





Single (With Less Than Three Exemptions)
If the Amount of Taxable Income Is:		The Amount of Oregon Tax Withholding Should Be:
Over:	But Not Over:				Of Excess Over:
$        0	$       4,050	$   236	plus	4.75%	$      0
4,050	10,200	428	plus	6.75%	4,050
10,200	and over	844	plus	8.75%	10,200



8. 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:
   

Tax Withholding Table Married or Single (With Three or More Exemptions)
If the Amount of Taxable Income Is:		The Amount of Oregon Tax Withholding Should Be:
Over:	But Not Over:				Of Excess Over:
$         0	$   36,990	$0	plus	0%	$      0
36,990	250,000	1,215	plus	8.75%	36,990
250,000	and over	21,305	plus	9.9%	250,000





Single (With Less Than Three Exemptions)
If the Amount of Taxable Income Is:		The Amount of Oregon Tax Withholding Should Be:
Over:	But Not Over:				Of Excess Over:
$        0	$       39,565	$   0	plus	0%	$      0
39,565	125,000	608	plus	8.75%	39,565
125,000	and over	10,653	plus	9.9%	125,000



9. Multiply the number of exemptions by $219 and subtract from the annual tax calculated above to obtain the annual Oregon tax withholding.
   
10. Divide the annual Oregon tax withholding by 26 to obtain the biweekly Oregon tax withholding.<