© 2026 CoAd. All rights reserved.
Covers Oregon employer unemployment insurance and the Paid Leave Oregon program, including how contributions are split between employees and larger employers. Also outlines the state income tax structure and statewide sick time rules.
Oregon employers pay state unemployment insurance on a 2025 taxable wage base of $54,300 and must collect Paid Leave Oregon contributions, set at a total of 1% of wages in 2025, with employees paying 60% and large employers paying 40%.
Last updated in source: 12/23/2025.
Oregon has a graduated personal income tax (PIT) with rates ranging from 4.75% to 9.9%, a state Unemployment Insurance (UI) program with an employer taxable wage base, a state-run Paid Leave Oregon program funded by employee and employer contributions, and a statewide sick time law administered by BOLI. Oregon does not have a general statewide sales tax, but there are local taxes – for example the Portland Arts Tax, Metro and Multnomah local income levies, and some municipal payroll and withholding obligations – that employers must watch.
Oregon uses a graduated individual income tax. Rates range from 4.75% up to 9.9%, with the top bracket beginning at the high-income threshold. Use Oregon Department of Revenue tables or the OR-40 instructions for exact bracket thresholds by filing status. Employers must withhold Oregon income tax from wages for residents and nonresidents as required.
Paid Leave Oregon is administered by the Oregon Employment Department.
The total contribution rate is currently set at 1% of wages for 2025, indexed and subject to OED changes.
Report new hires and rehires within 20 days to the Oregon Child Support Program (Oregon DOJ). Use the employer portal or the paper form.
Workers aged 16 and over may work any time in non-hazardous jobs. Workers aged 14 to 15 may work outside school hours in non-hazardous jobs with hour and time limits. Hazardous jobs and other restrictions follow BOLI child labor rules. There are no separate tax age thresholds – minors earning wages are taxable like other employees – but for payroll work rules, see BOLI.
Employers must contribute to the WBF each pay period, based on hours worked by all employees, with the current rate split equally between employer and employee. The fund supports worker benefit and safety programs administered by the Oregon Department of Consumer and Business Services.
Certain local levies may apply to employees in the metro area – for example Multnomah County and Metro income levies, local payroll and withholding obligations, and Portland payroll taxes for specific local funds. Employers must review local ordinances where they operate and withhold and remit if required. There is no general statewide local income tax, but municipal and regional taxes exist.
The Oregon Sick Time Law (ORS 653.601–653.661) gives all Oregon workers protected sick time.
Oregon follows FLSA overtime standards: time-and-a-half for hours worked over 40 in a workweek for nonexempt employees. BOLI enforces state interpretations and exemptions. Some industry and employee-type exceptions exist, such as railroad workers and certain managers. Always apply the more protective rule if the state or local standard is stricter.
Oregon does not mandate paid meal breaks statewide the way some states do, but BOLI provides guidance: short rest breaks of about 20 minutes are generally compensable. Follow BOLI guidance and any sector-specific rules, and check collective bargaining agreements or industry rules for required breaks.
Under ORS 652.140, when an employee quits with at least 48 hours' notice, wages are due at quitting. Otherwise, final wages are due by the next regular payday or within five business days, subject to statutory specifics. Employers must follow ORS requirements for timing and pay statements.
OregonSaves is Oregon's automatic payroll-deduct Roth IRA program for workers whose employers do not offer a workplace retirement plan. Employers must register or certify an exemption by the OregonSaves deadlines if they do not offer an equivalent plan. Employer responsibilities include payroll withholding and forwarding if required. Confirm exemption status or registration to avoid penalties.
Employers must comply with Oregon wage deduction statutes and federal garnishment rules. Voluntary deductions require written authorization. Court-ordered garnishments and child support must be honored per state and federal limits and procedures. See Oregon DOJ and BOLI for forms and timelines.
Maintain payroll, time and tax records per FLSA and BOLI guidance. Employers must provide required posters and notices – sick time rights, Paid Leave notices and wage statements – and give employees quarterly notices of accrual if required. BOLI provides templates, such as the quarterly sick leave notice.
$54,300 per the Oregon Employment Department. Employers should use the updated wage base when calculating UI taxes.
Contributions began January 1, 2023, and employees could begin receiving benefits as early as September 3, 2023, with benefits and certain program rules phased in. Contribution split and implementation guidance continue via OED. Update payroll systems for current contribution percentages: 1% total in 2025, with employees paying 60% and large employers paying 40%.
Enforcement and administrative rules continue. Employers must provide accrual and required notices per BOLI guidance and template notices.
The 2025 Oregon UI taxable wage base is $54,300 per employee. UI is an employer tax in Oregon; employee withholding is not generally required for state UI.
The total Paid Leave Oregon contribution rate is set at 1% of wages for 2025. Employees pay 60% (0.6%) through payroll withholding, and large employers averaging 25 or more employees pay the other 40%; employers with fewer than 25 employees must collect the employee contribution but are not required to pay the employer share, though they may opt in.
Yes. Employers must withhold 0.1% (0.001) from all wages paid to Oregon employees to fund statewide transit programs, and remit it quarterly with payroll tax filings to the Oregon Department of Revenue.
No. A tip credit is not allowed in Oregon, so tips cannot be used to meet minimum wage obligations and employers must pay the full state or regional minimum wage regardless of tips. Oregon's minimum wage is regionally indexed and adjusts on July 1 each year.
Under Oregon's sick time law (ORS 653.601-653.661), workers accrue at least 1 hour of sick time per 30 hours worked, up to a minimum of 40 hours per year. Sick time must be paid if the employer has 10 or more employees anywhere in Oregon, or 6 or more if the employer has a Portland location; smaller employers must still provide protected sick time, but it may be unpaid.