Bonus tax calculator Oregon
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Does Oregon tax bonuses?

Yes. Oregon treats bonuses as taxable income and applies standard withholding rules. If bonuses (or other supplemental wages like commissions or overtime pay) are paid at the same time as regular wages, employers should calculate withholding based on the total amount as a single wage payment.

If supplemental wages are paid separately, Oregon allows employers to:

• Combine the bonus with wages from the current or most recent payroll period, calculate withholding on the total, then subtract any tax already withheld from regular pay; or
• Use an alternative flat withholding rate of 8%, effective since January 1, 2020.

Employers can also use Oregon’s daily or miscellaneous tables for irregular payments. Heads up for employees: If a worker claims exemption from state withholding, that exemption now expires on February 15 of the year following the claim — matching federal exemption rules.

How to calculate bonus tax in Oregon

Bonuses are taxed using Oregon’s regular withholding tables. If paid separately from regular wages, employers may optionally withhold at a flat 8%.

What is the bonus tax rate in Oregon?

Up to 9.9%, depending on income level — plus local transit taxes in some areas. If using the optional flat method, the rate is 8%.

How do bonuses work in Oregon?

Bonuses are considered supplemental wages, reported on Form W-2, and subject to full state and federal withholding.

How can employers in Oregon pay bonuses to employees?

Bonuses can be paid via:

• Check
• Direct deposit
• Pay card

Why are bonuses taxed differently than standard pay?

They generally aren’t — but when paid separately, Oregon offers a flat 8% withholding option.

How much tax is taken out of a bonus in Oregon?

Up to 9.9% state + 22% federal = as much as 31.9%, not including FICA or any local transit taxes.

More resources for Oregon employers

• Current tax rates
• Withholding tables