Keep Portland Weird was a slogan originally created to support local businesses and small business owners. In addition to the city, the state of Oregon offers its own artistic flare through a “kicker” tax credit.
The Oregon “kicker” tax credit is how the state returns money to taxpayers when there is a revenue surplus. The state must refund taxpayers when personal income taxes and other non-corporate revenue streams come in at least 2% higher than state economists predicted.
This year, Oregon will be getting the biggest kicker in state history, representing approximately 44 percent of the amount you paid in taxes in 2022. Note: In order to get the kicker credit on your 2023 return, you needed to have filed a 2022 return.
Interested in calculating yours? The Oregonian has a handy calculator.
The largest return in history to Oregon taxpayers will come in handy for those living in Multnomah County, which has some of the highest tax rates in the nation.
According to a report from Ernst & Young, Multnomah County now has the nation’s second-highest total state and local income tax rate at 14.69%. New York City has the highest in the nation at 14.78%.
That’s not all. The top tax rate kicks in for single taxpayers with incomes above $125k and joint filers at $250k. By comparison, New York City’s top tax rate doesn’t kick in until $25 million.
This means some Uplevel clients could pay approximately the same state and local tax rates as New York City residents and celebrities Jay-Z and Jerry Seinfeld.
Ouch.
Wondering how this is possible? Here’s how it adds up:
- Oregon’s income tax is 9.9% on income over $125k for single filers and $250k for married filing jointly. Note: Oregon does not tax Social Security benefits.
- The Oregon transit tax is a statewide 0.10% payroll tax employers withhold from employee wages.
- The Portland Metro area, including Multnomah, Washington, and Clackamas Counties, assess a homeless service tax of 1% for single filers with income over $125k and married filing joint filers with income above $200k.
- In addition to the above, Multnomah County residents pay a Preschool for All Personal Income Tax. Joint filers with incomes above $200k pay 1.5% and an additional 1.5% on taxable income above $400k.
- Note: Not a resident of Multnomah County? You may not be in the clear. You are subject to the tax thresholds if your income is sourced within the county. Also, the rate will increase by 0.8% in 2026.
Looking for ways to lower your tax burden or need help getting organized to file your taxes? Don’t worry—we have you covered. Please be sure to reach out; we’re here to help.
Uplevel Wealth is a fee-only, fiduciary wealth management firm serving clients in Portland, OR, and virtually throughout the U.S.
