Oregon Retirement Income Tax Calculator
Oregon exempts Social Security but taxes pensions and IRAs at 4.75% to 9.9%, with credits.
Checked against sources 1 official source linked How we verify
Oregon resident retirement worksheet
OR · 2026 scoped worksheet
Waiting on a figure
- OR modeled taxable income
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- Calculated retirement subtractions
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- Included benefits subtracted
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- Qualified pension / IRA subtraction
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- Separate senior / disability subtraction
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- Modeled retirement / exemption credits
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- Estimate after other approved credits
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Calculation scopeFull-year ordinary resident return; approved current federal income, eligible included benefits, all modifications and actual deduction. No mixed residency, unprepared negative income or special-rate calculation.
Illustrative defaults. Enter approved taxable amounts and confirm eligibility. The result covers the displayed worksheet conditions; a complete return may require other income, adjustments, deductions or credits.
Published 2026 OR-ESTIMATE literal rounded chart and 260 approved exemption credit. Current-year federal subtraction / retirement credit separately approved; this is an estimate method, not a final return Primary agency / statute sources independently reviewed October 2, 2026. Illustrative amounts require confirmation; final return, credits and special taxes remain separate.
Reviewed October 2, 2026. Oregon 2026: literal estimate charts and separately approved credits
What Oregon taxes in retirement
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Social Security
Not taxedExcluded, with protected railroad benefits.
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Pensions
Partly taxedTaxed; federal pension service before October 1, 1991 can be subtracted.
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IRA & 401(k) withdrawals
TaxedTaxed at 4.75% to 9.9%.
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Wages from work
Taxed4.75% to 9.9%.
Partly taxed: limits by age, plan, owner or income apply. Military retirement is covered in the guide. How these labels work.
Oregon 2026: literal estimate charts and separately approved credits
Use Oregon’s published 2026 estimate chart, benefit exclusion, approved federal-tax subtraction and retirement/exemption credits.
Oregon excludes federally included Social Security and protected railroad benefits. Ordinary pension and IRA distributions remain part of the resident state base unless a separate lawful adjustment applies. A qualifying federal pension can need an approved subtraction for service before October 1, 1991; the entire civil-service pension must not be assumed exempt from the date of retirement alone. Keep each amount after contribution-basis preparation and avoid overlapping adjustments.
The agency’s 2026 OR-ESTIMATE publication supplies actual current estimate charts. For joint, head-of-household and qualifying surviving filers the taxable-income boundaries are $9,100, $22,800 and $250,000, with rates 4.75%, 6.75%, 8.75% and 9.9%. The printed bases are rounded to $432, $1,357 and $21,237. This calculator uses those literal bases; integrating a continuous rate schedule can differ by a dollar from the published estimate method.
The federal-income-tax subtraction is a separate approved amount, limited to $8,750 and reduced by its income/filing worksheet. It is based on qualifying federal tax, not simply federal withholding. The state standard deduction and itemized eligibility are separately prepared. The publication lists 2026 estimate standard deductions of $2,900 single/separate, $4,650 head and $5,800 joint/surviving; the illustrated $10,000 entry is an approved-amount example rather than an automatic standard deduction.
Oregon allows a $260 credit for each approved exemption, unless federal AGI exceeds $100,000 single/separate or $200,000 joint/head/surviving. Exactly the threshold does not disallow the credit. The retirement-income credit has its own age, income and household worksheet; it is not a pension subtraction. Other nonrefundable credits must also be approved, and blank is not a confirmed zero.
The official estimate example uses $90,000 income, $8,750 federal subtraction and $13,250 deductions to reach $68,000 taxable. The joint chart gives $1,357+($68,000−$22,800)×8.75%=$5,312. Five exemptions reduce that by $1,300, and another $100 credit leaves $3,912. Current conformity modifications, special gains, mixed residency and final-return rounding remain distinct steps. Retain the source’s 2026 estimate label until final-return instructions establish their own method.
Prepare these Oregon records
- Actual 2026 OR-ESTIMATE literal rounded chart
- Approved federal-tax subtraction, exemption count and retirement-income credit
- Separate Social Security, railroad and qualifying federal-service adjustments
Official Oregon source. Published 2026 OR-ESTIMATE chart and credit example; Oregon 316 resident law.
Calculate the federal portion separately
Use the federal retirement-tax worksheet to prepare federally included benefits and ordinary income. Its federal deduction and rates do not replace the Oregon rules above.
Compare Oregon with nearby states
Washington, Idaho, Nevada and California border Oregon. Hawaii borders no state and lists Oregon among its comparison states. Run each one’s worksheet with the same household figures before deciding where a move would leave you.
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Updated / verified · Retirement Income Tax Calculator Editorial Team