1. What is Oregon Paycheck Calculator?

The Oregon Paycheck Calculator helps employees and employers estimate net pay after deductions including federal tax, Oregon state tax (5-9.9%), and FICA taxes.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• \( Gross \) — Total earnings before deductions
• \( Federal Tax \) — Federal income tax amount
• \( State Tax \) — Oregon state tax (calculated as Gross × State Tax Rate)
• \( FICA Tax \) — Social Security and Medicare tax (7.65% of Gross)

Explanation: Oregon has a progressive income tax system with rates ranging from 5% to 9.9% based on income brackets.

3. Understanding Oregon Tax Structure

Details: Oregon's state income tax ranges from 5% to 9.9% across different income brackets. FICA tax includes 6.2% for Social Security and 1.45% for Medicare.

4. Using the Calculator

Tips: Enter gross salary in dollars, federal tax amount, and select appropriate Oregon state tax rate (5-9.9%) based on your income bracket.

5. Frequently Asked Questions (FAQ)

Q1: What is FICA tax?
A: FICA stands for Federal Insurance Contributions Act, which includes Social Security (6.2%) and Medicare (1.45%) taxes.

Q2: How do I determine my Oregon state tax rate?
A: Oregon uses progressive tax brackets. Check the latest Oregon Department of Revenue guidelines for current rates based on your income level.

Q3: Are there other deductions not included?
A: This calculator covers major deductions. Additional deductions may include health insurance, retirement contributions, and local taxes.

Q4: Is Oregon state tax deductible on federal returns?
A: Yes, state income taxes are generally deductible on federal tax returns if you itemize deductions.

Q5: What about Oregon's kicker credit?
A: Oregon sometimes issues a "kicker" tax credit when state revenues exceed projections by 2% or more.