What is Oregon's state income tax rate for self-employed workers?

Oregon uses progressive brackets topping out at 9.9%. Most full-time gig workers sit in the 8.75% bracket on the bulk of their profit.

Do Portland freelancers owe extra local income taxes?

Often yes. The Metro Supportive Housing Services tax (1%) and Multnomah County Preschool for All tax (2.6% and up) apply above income thresholds, and Portland/Multnomah charge a business license tax on net self-employment profit.

When are Oregon estimated tax payments due in 2026?

April 15, June 15, September 15, 2026 and January 15, 2027 — the same dates as federal 1040-ES. Pay through Revenue Online if you expect to owe $1,000 or more of Oregon tax.

How much should an Oregon gig worker save for taxes?

Plan on 30% to 35% of net profit statewide, and closer to 35% to 40% inside Portland once Metro SHS, PFA and the business license tax are included.

Does Oregon allow the standard mileage deduction?

Yes. Oregon starts from federal adjusted gross income, so $0.76 per business mile for 2026 reduces your Oregon and Portland-area bills as well as your federal one.

Do I need a business license to freelance in Oregon?

The state does not require a general license, but Portland and Multnomah County require business tax registration, and Eugene applies its Community Safety payroll tax to self-employment earnings sourced there.

Oregon Self-Employed Tax Calculator

Federal + 15.3% SE + Oregon state income tax on 2026 1099 income, with Portland Metro and Multnomah County local taxes explained.

Oregon trades no sales tax for a heavy income tax, and Portland-area self-employed workers stack the most layers in the country: state brackets up to 9.9%, the Metro Supportive Housing Services tax, Multnomah County's Preschool for All tax, and the Portland/Multnomah business license tax on net profit.

Self-employed income & expenses

Estimate federal + SE + state tax for the 2026 tax year in one pass.

Annual 1099 income

Business miles driven

Other business expenses

Self-employed health insurance

Retirement contributions (SEP / Solo 401k)

W-2 income (if any)

Federal tax withheld

Filing status

State

Estimated total tax bill

$13,593

Refund / owed

-$13,593

Effective rate

22.7%

Detailed breakdown

Mileage deduction$6,080

Total business expenses$8,580

Net self-employment income$51,420

Self-employment tax (15.3%)$7,265

½ SE deduction (above-the-line)$3,633

Adjusted gross income$47,787

Taxable income$31,687

Federal income tax$3,554

State tax (est.)$2,773

Quarterly estimated payment$3,172

Marginal rate20.8%

Oregon city tax rates for self-employed workers (2026)

Oregon has one of the highest state income tax rates in the country and the Portland metro stacks several local taxes on top — the Metro Supportive Housing Services tax, Multnomah County Preschool for All, and the Portland/Multnomah business license taxes on self-employment profit.

Local and state tax rates for self-employed residents of major Oregon cities in 2026
City	Local rate	State rate	What gig workers should know
Portland	2.6% Multnomah PFA + 1% Metro SHS (over thresholds) + ~2.6% city/county business tax	Up to 9.9% (8.75% typical bracket)	Self-employed residents file Metro SHS and PFA returns and register for the Portland/Multnomah business license tax on net profit.
Gresham	1% Metro SHS + 2.6% Multnomah PFA over thresholds	Up to 9.9%	Inside Multnomah County and the Metro district, so both local income taxes can apply.
Beaverton	1% Metro SHS over thresholds	Up to 9.9%	Washington County part of Metro — SHS applies, PFA does not.
Salem	No local income tax	Up to 9.9%	Outside the Metro district; state tax and business registration only.
Eugene	Community Safety Payroll tax (employers/self-employed)	Up to 9.9%	Eugene's payroll tax reaches self-employment earnings sourced to the city.

Oregon local and state filing deadlines

Q1 OR estimated paymentApril 15, 2026
Form OR-40-V / Revenue Online; required if you expect to owe $1,000 or more of Oregon tax.
Q2 OR estimated paymentJune 15, 2026
Second state installment.
Q3 OR estimated paymentSeptember 15, 2026
Third state installment.
Q4 OR estimated paymentJanuary 15, 2027
Final installment for the 2026 year.
OR Form OR-40 returnApril 15, 2027
Extension to October 15, 2027 to file, not to pay.
Metro SHS / Multnomah PFA returnsApril 15, 2027
Separate local returns with their own quarterly estimate rules once you cross the income thresholds.
Portland/Multnomah business license taxApril 15, 2027
Filed on net self-employment profit; a minimum fee applies once you exceed the gross receipts exemption.
Q1 federal 1040-ESApril 15, 2026
Covers income earned January 1 – March 31.
Q2 federal 1040-ESJune 15, 2026
Covers April 1 – May 31.
Q3 federal 1040-ESSeptember 15, 2026
Covers June 1 – August 31.
Q4 federal 1040-ESJanuary 15, 2027
Covers September 1 – December 31.

Oregon has no sales tax, but the income side is heavy — Portland-area freelancers commonly face a combined marginal rate above 40% once federal, SE, state and local taxes stack.
Oregon follows federal adjusted gross income, so mileage, phone and home office deductions cut your state and local bills as well.

See every Oregon tax form you need to file — annual, quarterly, and local →

Frequently asked questions

What is Oregon's state income tax rate for self-employed workers?: Oregon uses progressive brackets topping out at 9.9%. Most full-time gig workers sit in the 8.75% bracket on the bulk of their profit.
Do Portland freelancers owe extra local income taxes?: Often yes. The Metro Supportive Housing Services tax (1%) and Multnomah County Preschool for All tax (2.6% and up) apply above income thresholds, and Portland/Multnomah charge a business license tax on net self-employment profit.
When are Oregon estimated tax payments due in 2026?: April 15, June 15, September 15, 2026 and January 15, 2027 — the same dates as federal 1040-ES. Pay through Revenue Online if you expect to owe $1,000 or more of Oregon tax.
How much should an Oregon gig worker save for taxes?: Plan on 30% to 35% of net profit statewide, and closer to 35% to 40% inside Portland once Metro SHS, PFA and the business license tax are included.
Does Oregon allow the standard mileage deduction?: Yes. Oregon starts from federal adjusted gross income, so $0.76 per business mile for 2026 reduces your Oregon and Portland-area bills as well as your federal one.
Do I need a business license to freelance in Oregon?: The state does not require a general license, but Portland and Multnomah County require business tax registration, and Eugene applies its Community Safety payroll tax to self-employment earnings sourced there.