What are the Income Law Requirements in the State of Oregon?
Although all states may not collect personal income taxes, Oregon is one of the many states that do. This personal income tax is based on the taxable income of the individual which includes the person salary, gambling winnings, and any other source of income from Oregon. While many states have a progressive tax code, others have a flat rate that applies to all taxpayers irrespective of how much they earn. In the case of Oregon, there are four different tax brackets based on the individuals' income level. Any revenue generated from personal income taxes is used for the development of the public infrastructure and other public services such as schools, emergency services, public parks, highways, and other public goods and services.
The largest of the Oregon tax brackets encompass those that have an income of between $5000 and $125000. This is taxed at a flat rate of $310 plus 9% of any income over $5000. It needs to be taken into consideration that Oregon does not charge any retail sales tax which along with the personal income tax is one of the primary sources of income for the state.
Here is a quick breakup of all the information about the Oregon personal income tax rates and other vital points.
The Oregon state personal income tax act can be found in the code section 316.037 et seq. It states that every resident is taxed on the entire income and every resident or part resident is taxed on a pro rata amount of the whole of taxable income. Estates and trusts are also taxable while partnerships are not taxable.
The rate slabs for income tax in Oregon
- 5% for those that earn an annual income of less than $2000
- For those between $2000 and $5000, the income tax is $100 plus 7% of anything gained over $2000
- For those earning between $5000 and $125000, the income tax is $310 plus 9% of the excess of $5000
- Lastly, for those earning over $125000, the income tax is $11,110 plus 9.9% of the excess of $125000
- Residents in Oregon are also able to use their federal income tax as deductibles, and the federal income is used as the basis of calculation
- You can file the income tax either online or through the mail. There are also many payment plans available for those who need a little bit of extra time to pay their tax obligations
How to determine who needs to file income tax returns?
- If you are a full-time resident, you would need to file income tax for any amount more than the stated amount according to your category.
- If you are a dependent and your gross income is more than $1050.
- If you are single and earn more than $6075 to $8475 depending on the number of boxes checked on line 17 of the return.
- If you are married but filing separately and above $6075 to $8075 according to the number of boxes checked.
- Qualifying widow with an income of $8455 to $10,455 depending on the number of boxes ticked.
- For Part-time and nonresidents, you would have to file an Oregon income tax return if
- Your filing status can be claimed on another back, and your Oregon gross income is over $1050. Other categories are similar to the ones for residents however the total gross income should be over $2215 for a single individual, $4435 for married couples filing jointly, $2215 for married couples filing separately, $3570 for the head of the household, and $4435 for a qualified widow.