Oregonians Face New Tax

Oregon employees will see a new tax withholding on pay stubs received after July 1. Oregon’s statewide transit tax is one-tenth of one percent (.001) of wages earned—or $1 per $1,000 in wages. The tax was part of House Bill 2017 from the 2017 Legislative Session, also known as the “transportation package.” Revenue from the statewide transit tax will go to finance investments in and improvements to public transportation throughout Oregon, except for those involving light rail.

Those working in Oregon—which includes both residents and non-residents—won’t have to do anything in regards to this tax. While employees pay the tax, employers are responsible for withholding it from employee wages, just like for personal income taxes.

Oregon residents who work outside of the state can ask their employer to withhold the statewide transit tax from their wages as a courtesy, but employers aren’t required to. If the out-of-state employer doesn’t withhold the tax, the employee is responsible for reporting and paying the tax due when they file their annual Oregon personal income tax return. More information on employee reporting for the statewide transit tax will be available on our website later this year.

For more information on how statewide transit tax revenues will be used, check out “HB 2017 Funding Package” under “Projects & News” on the Oregon Department of Transportation’s website at www.oregon.gov/odot. To learn more about the tax, visit the Department of Revenue online at www.oregon.gov/dor.


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