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Your Guide to Small Business Tax Rates

oregon business income tax rate range

If you need an extension to file for Oregon only, write “for Oregon only” across the top of the form before filing. S corporations and other pass-through entities with nonresident shareholders or owners may have more filing and payment requirements. For Oregon, S corporation income is generally taxable to the shareholders rather than the corporation.

For example, if a calendar year federal C corporation return is due April 15, the Oregon calendar year return is due May 15. If a calendar year federal S corporation return is due March 15, the Oregon calendar year return is due April 15. If a due date falls on a weekend or state holiday, the return is due the next business day. Nonresident oregon income tax shareholders are taxed on their share of modified income from the federal K-1s, multiplied by the S corporation’s apportionment percentage from Schedule OR-AP. The income or loss of an S corporation is reported to each shareholder on federal form Schedule K-1. However, deciding whether to have your LLC taxed like a C-corp is complicated.

Step 2. List Out Oregon Payroll Taxes

The state’s unemployment insurance tax administrative assessment for all experience-rated employers is set to expire in 2027. However, for 2024 through 2026, Senate Bill 160 sets the assessment at a rate of 0.06 percent. By approving Proposition 4, Texas voters raised the homestead exemption from $40,000 to $100,000. Through what is known as “compression,” state funds will be used to buy down local property tax rates.

The county tax collector collects the taxes and distributes the funds to the local districts. Shareholders who meet Oregon filing requirements must file an Oregon tax return. Refer to the appropriate tax forms and instructions, based on what type of taxpayer the shareholder is (individual, corporation, trust, other), for more information.

Can insurance companies file a consolidated return?

In 2024, this rate will be 5.84 percent, a target reached three years earlier than anticipated. In 2020, through Senate Bill , Colorado committed to increasing the state’s unemployment insurance wage base to $30,600 by 2026. One state, Kansas, will significantly reduce its grocery sales tax rate. Many small businesses are not actually categorized as C Corporations. And the ones that are LLCs are not normally treated as corporations, but this tax is still pertinent to understand because it has to be paid. More importantly, a lot of small businesses end up turning into corporations over an extended period of time.

oregon business income tax rate range

Depending on your employees’ elections, you’ll need to deduct the applicable amounts from their wages before running payroll. Oregon levies a corporate excise or business tax starting at a rate of 6.6% for corporations with taxable income of $1 million or less. Oregon businesses with greater than $1 million in taxable income must use a formula to calculate their corporate excise tax liability. The personal income tax is the largest source of state tax revenue and is projected to make up 86% of the total General Fund revenues in the 2021–2023 biennium. In January 2010, Oregon voters approved Ballot Measure 66, which made two permanent changes to personal income tax calculations. First, it established a new tax bracket for adjusted gross income above $125,000 (single filers) and $250,000 (joint filers) and second, phased out the federal tax subtraction for those same filers.

Modernization of the Alcohol Tax

Corporations that do, or have authority to do business in Oregon must pay an excise tax. Corporations that don’t, or don’t have the authority to do business in Oregon but still generate income from a source in Oregon pay income tax. In other words, if you have a corporation created under Oregon law, you pay excise tax.

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