Retiring in Oregon

Every figure below is sourced to Oregon’s own publications and dated. Estimates only, and not tax advice.

Retirement tax by state

What your state actually takes from a 401(k) withdrawal, a pension, and Social Security — in dollars, not a yes/no list.

Brokerage account growth

Long-term index-fund growth after expense-ratio drag — and what your state takes from the gains at withdrawal.

Roth vs. Traditional

Decided on the two rates that actually govern it — yours now, and yours at withdrawal, in the state you'll retire in rather than the one you're in.

Contribution limit optimizer

2026 limits, employer match, the 60-63 super catch-up, and whether the Roth catch-up mandate applies to you.

Required minimum distribution

When your RMDs start under SECURE 2.0, how much this year's is, and what missing it costs.

Backdoor Roth pro-rata

What a backdoor Roth conversion would actually cost you in tax — the pro-rata rule most calculators only describe.

Self-directed IRA real estate (UDFI)

The tax a leveraged rental owes inside a self-directed IRA — computed at trust rates, not the rate you'd assume.

Oregon at a glance

401(k) and IRA withdrawals
Taxed
Social Security
Not taxed
Top marginal rate
9.9%
The top of 4 graduated brackets.
Tax year
2026
Brackets are legislated and change on a fixed calendar, so the year matters.
  • Oregon has no sales tax, and the trade is a high income tax that bites early: the 8.75% bracket starts at $11,400 of Oregon taxable income for a single filer, so most working Oregonians are at 8.75% at the margin, not 4.75%.
  • Oregon's federal tax subtraction is a real and unusual feature not representable in this schema's fields: a filer may subtract federal income tax paid, capped at $8,750 for 2026 and phased down to zero as income rises (fully gone above $145,000 single / $250,000-plus joint in the withholding formula). Ignoring it overstates Oregon tax for middle-income filers.
  • The 'kicker' credit — a refundable surplus credit issued in odd-numbered filing years when actual revenue exceeds the forecast by 2% or more — is a real reduction in Oregon's effective rate in kicker years and is not modelled here because it is declared after the fact.

Local income tax applies in parts of Oregon

Oregon's local income taxes are confined to the Portland metro area but are among the heaviest in the country where they apply, and a Portland calculation that ignores them is badly wrong. METRO SUPPORTIVE HOUSING SERVICES (SHS): 1% on taxable income above an exemption threshold, across the Metro district covering parts of Multnomah, Washington and Clackamas counties. Beginning in tax year 2026 the exemption thresholds are $128,000 single and $205,000 joint, up from $125,000 and $200,000 for 2021-2025, and from 2026 forward they are adjusted annually for inflation. MULTNOMAH COUNTY PRESCHOOL FOR ALL (PFA): 1.5% on income above $125,000 single / $200,000 joint, PLUS AN ADDITIONAL 1.5% above $250,000 single / $400,000 joint — the second example's 3% is the combined marginal rate in that upper band, not a separate tax. The PFA rate is scheduled to rise by 0.8 points in 2027. A high-earning Multnomah County resident therefore faces 9.9% state plus 1% SHS plus 3% PFA at the margin. Both taxes reach RESIDENTS AND NON-RESIDENTS earning income within their jurisdictions. NO STATEWIDE LOCAL RATE IS RECORDED: outside the Portland metro area no Oregon city or county taxes personal income. Separately and not in this array, Oregon has transit district payroll taxes (TriMet, Lane Transit) that are employer-side taxes on wages rather than taxes on an individual's income.