Oregon Tax Structure

Corporate income tax single sales factor

The tax rate on corporate income of firms doing business in the state is the greater of a minimum tax based on relative sales ($150-$100,000 – approximately 0.1%) or an income-based levy of 6.6% on Oregon taxable income of $1 million or less and 7.6% on Oregon taxable income above $1 million. There is a minimum excise tax of $150.

Oregon businesses are taxed on a portion of their total income derived from sales within the state.

• This corporate income tax is considered single sales factor tax; it only considers Oregon sales in determining corporate income taxes owed to the state.
• Other states often include additional assets and payroll, making them "multi-factor" taxes.

Tremendous impact for Oregon multi-state companies

If a company is headquartered in Oregon but sells products throughout the country, or world, it only pays Oregon corporate income tax based on the amount of income coming from sales within state lines.

How the tax works

• First the state looks at the company's entire federal taxable income, total sales and portion of sales derived in Oregon.
• Second, the state takes the ratio of Oregon sales to total sales and applies that same ratio to the company's total federal income. 

The result is the company's Oregon taxable income. 

Oregon does not have:

• General sales and use tax
• Receipts/revenue tax
• Inventory tax
• Worldwide unitary tax
• Motor vehicle excise tax
• State capital tax on asset value
• Direct levies on intangible properties, e.g., stocks, bonds 

Personal income and property taxes

Oregon Department of Revenue