At a glance
- Corporate tax
- 6.6%/7.6% + 0.57% CAT over $1M
- Tax on wages
- 4.75%–9.9%
- Sales tax
- None
- Economic nexus
- No sales tax
- Minimum wage
- $15.55/hr ($16.80 Portland metro)
- UI wage base
- $56,700
- New-employer UI rate
- 2.4%
- Paid leave program
- Paid Leave Oregon 1%
- Annual report
- Yearly on anniversary, $275 (foreign)
2026 figures, each explained with its source on the area’s page. On top of the federal baseline.
Setup, in order
Register with the Secretary of State
Before transacting business in OregonFile an Application for Authority for a foreign business corporation ($275) with a Delaware certificate of existence dated within 60 days.
Register as an Oregon employer
Before the first Oregon payrollComplete the Combined Employer Registration to open DOR withholding and transit tax accounts and OED unemployment insurance and Paid Leave Oregon accounts.
Get workers’ compensation coverage
Before the first employee startsBuy workers’ compensation from an authorized insurer or through a PEO; the insurer files proof of coverage.
Report new hires and contractors
Within 20 daysReport each new employee, and each individual hired as an independent contractor, to the Oregon Child Support Program.
Set up OregonSaves
With the first Oregon employeeOffer a retirement plan or facilitate OregonSaves, which applies to all Oregon employers without one.
Register for the Corporate Activity Tax
Within 30 days of reaching $750,000Register for the CAT once Oregon commercial activity reaches $750,000 in a calendar year.
Register in Portland
When employees or receipts are in Portland or Multnomah CountyRegister with the City of Portland Revenue Division for the Portland and Multnomah County business taxes, and set up Metro SHS and Preschool for All withholding.
The six areas
- AccountingAccounting and state tax in OregonOregon taxes corporations twice: a 6.6%/7.6% excise tax on income with a sales-based minimum, and a 0.57% Corporate Activity Tax on Oregon receipts over $1 million.Corporate excise tax6.6%
- ReceivablesReceivables and sales tax in OregonOregon has no sales tax, so SaaS sold to Oregon customers is untaxed at the register, but Oregon receipts over $1 million carry the 0.57% Corporate Activity Tax.Sales taxNone
- PayablesPayables and contractors in OregonOregon has no sales or use tax, but every 1099 for an Oregon recipient is filed directly with DOR through iWire, and individual contractors are reported as new hires within 20 days.1099 filing with OregonRequired
- PayrollPayroll taxes and employer rules in OregonOregon payroll layers state withholding, 2.4% new-employer UI on $56,700 and 1% Paid Leave Oregon with transit taxes and, around Portland, Metro and Multnomah County income taxes.Minimum wage (standard)$15.55 an hour
- ComplianceCompliance and filings in OregonA Delaware corporation pays $275 to register in Oregon and $275 a year to renew, files Form OR-20 by May 15, and in Portland files a combined city and county business tax return.Application for Authority$275
- AdvisoryAdvisory: credits and decisions in OregonOregon disconnects from the federal QSBS exclusion and bonus depreciation from 2026, offers no general R&D credit, and adds a $1,000-per-job credit for 2026–2031.QSBS (IRC §1202)Disconnected from 2026
Who you register with
- Oregon Department of Revenue (DOR)Corporate excise tax, Corporate Activity Tax, withholding, transit taxes and iWire 1099s
- Oregon Employment Department (OED)Unemployment insurance and Paid Leave Oregon contributions
- Oregon Secretary of State — Corporation DivisionApplication for Authority and the annual report
- Bureau of Labor and Industries (BOLI)Minimum wage, final pay, sick time and wage-and-hour rules
- City of Portland Revenue DivisionPortland and Multnomah County business taxes, Metro SHS and Preschool for All
- Oregon State Treasury — Unclaimed PropertyAnnual unclaimed property report
Hiring across the border
An employee who lives in one state and works in another is the most common way a startup ends up registered in two. These are Oregon’s neighbors.
- CACalifornia$800 minimum tax, the ABC test, daily overtime — and SaaS sales tax from 2027
- IDIdahoFlat 5.3% taxes, close federal conformity, no tax on SaaS and no local payroll taxes
- NVNevadaNo income tax; a payroll tax called the MBT and a Commerce Tax above $4 million
- WAWashingtonNo income tax, but B&O on gross receipts, taxable SaaS and IT services, paid leave
Common questions
Does Oregon have a corporate income tax or a gross receipts tax?
Both can apply. The excise tax is an income tax: 6.6% of Oregon taxable income up to $1 million, 7.6% above, with a minimum tax based on Oregon sales. The CAT is a separate gross receipts tax, 0.57% of taxable commercial activity over $1 million plus $250, owed whether or not the company is profitable.
Do we collect sales tax from Oregon customers?
No. Oregon has no sales tax, so there is nothing to collect on SaaS or anything else sold to Oregon customers. Oregon customers buying from you is also not a sales tax nexus question anywhere else.
Do we file 1099s with Oregon?
Yes, directly. Oregon does not take 1099s through the IRS Combined Federal/State Filing Program; every 1099 for a recipient with an Oregon address goes to DOR electronically through iWire by January 31, with no minimum number of forms. A company that only files with the IRS is out of compliance in Oregon.
When is the final paycheck due in Oregon?
By the end of the next business day for someone who is fired. An employee who quits with at least 48 hours’ notice is paid on their last day; without notice, within five business days or on the next regular payday, whichever is first. Late final pay can cost a penalty wage of eight times the regular rate for each day it is late, up to 30 days.
How does a Delaware corporation register in Oregon?
If it is transacting business in Oregon, it files an Application for Authority with the Secretary of State ($275), with a certificate of existence from Delaware dated within 60 days, and then renews every year for $275. Registering with DOR, OED and BOLI for payroll is a separate step through the Combined Employer Registration.
Does Oregon honor the federal QSBS exclusion?
Not from 2026. SB 1507 disconnects Oregon from the federal §1202 exclusion, so a founder who is an Oregon resident when they sell qualified small business stock in 2026 or later pays Oregon tax on the gain excluded federally. DOR noted a referendum petition against parts of SB 1507; check DOR’s legislation summary for its status before planning around it.
Sources
Checked against each agency’s own page on . Rates and thresholds change, usually on January 1.
- Oregon DOR — 2025 Form OR-20 Instructions
- Oregon DOR — Corporation excise and income tax
- Oregon DOR — Corporate Activity Tax (CAT)
- Oregon DOR — How do you calculate the CAT liability?
- Oregon DOR — 2026 summary of legislation
- Oregon Legislature — SB 1507 (2026), enrolled
- Oregon DOR — Statewide transit tax
- Oregon DOR — TriMet transit payroll tax
- Oregon DOR — 2026 Oregon Combined Payroll Tax Report instructions
- Oregon DOR — iWire (W-2 and 1099 reporting)
- Oregon DOR — Publication 1220 addendum (1099 specifications)
- Oregon Employment Department — 2026 UI tax and Paid Leave Oregon rates (Nov 18, 2025)
- Paid Leave Oregon — Small employers
- Paid Leave Oregon — Common questions
- BOLI — Minimum wage
- BOLI — Paychecks
- BOLI — Sick time
- Oregon DOJ Child Support — Report new hires
- Oregon DCBS — Workers’ compensation coverage
- OregonSaves — Program details for employers
- City of Portland Revenue Division — Personal income tax filing and payment (Metro SHS, Multnomah PFA)
- City of Portland Revenue Division — Business taxes
- Oregon Secretary of State — Business Registry fee schedule
- Oregon Secretary of State — Application for Authority, foreign business corporation
- Oregon State Treasury — Unclaimed property reporting guidelines
- Oregon DOR — 2026 withholding tax formulas
General information for US companies, not tax, legal or accounting advice for yours. Rules and thresholds change; confirm the specifics with a CPA or the agency before you act on them.