Retirement taxes by state
How Oregon taxes retirement income in 2026
Oregon's income tax rates run from 4.75% to 9.9%. Here's how Oregon treats Social Security, retirement-account withdrawals, pensions and Roth conversions in 2026 — and what that means in dollars: a retired couple, both 67, with $98,000 of income pays about $2,331 in Oregon income tax.
Updated October 2026 · 2026 tax year
Oregon at a glance
- Income tax from 4.75% to 9.9%.
- Social Security isn't taxed.
- Extra $1,200 ($1,000 if married) deduction per person from age 65.
- Federal income tax is deductible (in part).
Oregon retirement tax questions
Does Oregon tax Social Security?
No. Social Security isn't taxed.
Does Oregon tax 401(k) and IRA withdrawals?
Yes, at the state's regular income tax rates. Oregon has no special exclusion for retirement-account withdrawals. Also: extra $1,200 ($1,000 if married) deduction per person from age 65.
Does Oregon tax pensions?
Yes, at the state's regular income tax rates. Oregon has no special pension exclusion.
Does Oregon tax Roth conversions?
Yes. A Roth conversion counts as income in Oregon in the year you convert, taxed at the state's regular rates. Qualified Roth withdrawals later aren't taxed.
What is Oregon's income tax rate in 2026?
Oregon's income tax rates run from 4.75% to 9.9%.
What retirees actually pay in Oregon: three examples
Calculated with Retirology's tax engine under 2026 law, using each state's standard deduction, its retirement breaks and the 2026 federal rules for how much Social Security is taxable. For the retired couple, Oregon ranks 51st lowest of the 50 states and DC.
| Household | Total income | Oregon tax | Share |
|---|---|---|---|
| Retired couple, both 67 $48,000 of Social Security, $40,000 drawn from IRAs and 401(k)s, and $10,000 of qualified dividends | $98,000 | $2,331 | 2.4% |
| Single retiree, 70 $30,000 of Social Security, a $25,000 pension and $15,000 of IRA withdrawals | $70,000 | $2,186 | 3.1% |
| Early-retired couple, both 56, converting to Roth A $60,000 Roth conversion and $20,000 of long-term gains and qualified dividends, living on savings | $80,000 | $5,092 | 6.4% |
State income tax only — before local taxes, property tax relief and credits not listed above. Federal income tax is extra and the same in every state.
Oregon income tax brackets (2026)
Rates apply to Oregon taxable income, after the state's deductions and the retirement breaks above. Brackets are adjusted for inflation each year.
| Single | Rate | Married filing jointly | Rate |
|---|---|---|---|
| Up to $4,550 | 4.75% | Up to $9,100 | 4.75% |
| $4,550 – $11,400 | 6.75% | $9,100 – $22,800 | 6.75% |
| $11,400 – $125,000 | 8.75% | $22,800 – $250,000 | 8.75% |
| Over $125,000 | 9.9% | Over $250,000 | 9.9% |
Details and limits
Federal income tax deductible up to about $8,750, phasing out at higher incomes. Retirement income is taxed (the small retirement credit isn't modelled).
Sources
Rates and rules for the 2026 tax year, from Retirology's state tax data (reviewed October 2026):
This page explains state tax rules in general terms. It isn't tax advice — check your state's official instructions or a tax professional for your situation.