Personal Income Tax Withholding Information for Employers Payroll Providers

Your W-2 will indicate that this tax has been withheld in the local tax section under the name “MULT”. Starting in January of 2022, Metro employers are required to withhold the tax through payroll deductions for employees who earn more than $200,000 annually or for employees who opt into having the tax withheld. Your W-2 will indicate that this tax has been withheld in the local tax section under the name “METRO”. The City of Portland Revenue Division administers the tax on behalf of Multnomah County. Individuals who are liable for the tax must file a separate Multnomah County PFA personal tax return and pay the tax to the City of Portland Revenue Division to be in compliance with the tax law. Those with an Oregon 529 College Savings Plan had a carry forward option available until December 31, 2019, and can still carry forward any unused subtraction before that date until 2023.

• If you have qualifying income under $30,000 and dependents under the age of 5, you may qualify for the Oregon Kids Credit.
• Quarterly estimated payments can be made through payroll withholding, online or by mail.
• Corporate tax payments are up, too, but Oregon’s general fund relies primarily on personal income taxes.
• The payment for your businesses taxes is due at the same time you file and pay your federal and state taxes (generally April 15 for most filers).

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Oregon’s maximum marginal income tax rate is the 1st highest in the United States, ranking directly below Oregon’s %. You can learn more about how the Oregon income tax compares to other states’ income taxes by visiting our map of income taxes by state. Renewable, pollution-free energy harnessed from the sun has experienced massive growth in Oregon. As of 2021, 0.98 million megawatt/hours of Oregon’s electricity was generated from solar.

• Confusion about the recent notices shows we have room to improve, and we are committed to doing so.
• Contributions can be in the form of cash, property or expenses you incur from any volunteer work.
• This reduces the taxable income for the year, potentially leading to lower tax liabilities.
• If a taxpayer would have met the 90% threshold under the prior year’s rate (1.45%) for tax year 2020, but does not meet the 90% threshold under the new BIT rate (2.00%), quarterly interest will be waived.
• “They didn’t know, didn’t have an answer and had to go to the managers,” said Greenberg.
• Revenue is distributed within the portions of Clackamas, Multnomah and Washington counties that are inside Metro’s district.

Sales Tax and Sales Tax Rates

Revenue generated from the Multnomah County Business Income Tax goes to the County General Fund and is used to finance libraries, law enforcement, community corrections, jails, juvenile justice, bridges, social services, and health services. Employers must submit SHS and PFA personal income tax withholding payments to the Revenue Division. Payment due dates are the same as the dates for depositing federal and State of Oregon withholding tax liabilities. For more details, please see Oregon Metro’s SHS website and Multnomah County’s PFA website. There is no extension to file quarterly withholding returns or annual withholding reconciliation returns. In Oregon, different tax brackets are applicable to different filing types.

Oregon Standard Deductions & Personal Exemption Amounts

Capital gains in Oregon are subject to the normal personal income tax rates. That means capital gains can be taxed at a rate as high as 9.9%, depending on your total income. Oregon was one of the first Western states to adopt a state income tax, enacting its current tax in 1930.

Last year, Metro and Multnomah County waived all penalties and interest for the taxes after fierce public outcry. A KGW investigation found many taxpayers had no idea the taxes were overdue until they received a letter demanding oregon state income tax payment along with penalty and interest. Numerous other people have contacted KGW with similar experiences, despite having paid the taxes. There are also postings on social media from confused taxpayers who received the letters.

Multnomah County Preschool for All (PFA) Income Tax

Individual taxpayers can make estimated tax payments for the amount owed for tax year 2021; however, penalties will not be imposed for estimated tax payments not made in 2021 provided the tax is paid with the annual return due April 15, 2022. If you do not meet the criteria listed above, you are not required to file a Multnomah County PFA Personal Income Tax return. However, if your employer has withheld taxes from your wages, you will be required to file a personal income tax return with the Revenue Division in order to receive a refund of the taxes withheld. If you do not meet the criteria listed above, you are not required to file a Metro SHS Personal Income Tax return. However, if your employer has withheld the taxes from your wages, you will be required to file a personal income tax return with the Revenue Division in order to receive a refund of the taxes withheld. To determine if your address is located in the Metro tax jurisdiction, check your address in the Metro Boundary Address Lookup tool.

Additionally, the funds in these retirement accounts grow tax-deferred, meaning that taxes on investment gains are not paid until the money is withdrawn during retirement, ideally at a lower tax rate. The Earned Income Tax Credit (EITC) is a significant tax credit in the United States, designed primarily to benefit working individuals and families with low to moderate income. As a refundable credit, the EITC not only reduces the amount of tax owed but can also result in a refund if the credit exceeds the taxpayer’s total tax liability. This makes the EITC a powerful tool for reducing poverty, incentivizing work, and providing financial support to those who need it most. The credit amount varies based on the taxpayer’s income, marital status, and number of qualifying children, with the intention of providing greater assistance to families with children. In 2020, Portland became the city with the highest personal income taxes in the United States.

How Burdensome Are Your State’s Nonresident Income Tax Filing Laws?

The city of Portland collects the taxes on behalf of Multnomah County and Metro. “Confusion about the recent notices shows we have room to improve, and we are committed to doing so,” the statement read. To view your Certificate https://www.bookstime.com/ of Compliance online, you must register for a Revenue Division Tax Account. If you already have registered for an account, you can log in to Portland Revenue Online (PRO) to view and print your Certificate of Compliance.

Multnomah County Business Income Tax Changes for TY2020

• Each quarterly estimated payment should equal 25% (or more) of the current year’s estimated tax liability.
• Metro understands the challenge of this transition and will not assess penalties if the withholding is not available in 2021.
• The latest generation of lithium batteries is safe and cost-effective enough to be installed in homes and businesses to store electricity generated by rooftop solar panels.
• If you already have registered for an account, you can log in to Portland Revenue Online (PRO) to view and print your Certificate of Compliance.
• If you are liable for both the Metro SHS tax and the Multnomah County PFA tax and you have the same residency status for both jurisdictions, you do have the option to file a combined Metro SHS/MultCo PFA personal tax return on Portland Revenue Online (PRO).
• This extension should be accompanied by a payment of the estimated tax due, if applicable.

The information contained herein is general in nature and is not intended, and should not be construed, as legal, accounting or tax advice or opinion provided by Ernst & Young LLP to the reader. The reader also is cautioned that this material may not be applicable to, or suitable for, the reader’s specific circumstances or needs, and may require consideration of non-tax and other tax factors if any action is to be contemplated. The reader should contact his or her Ernst & Young LLP or other tax professional prior to taking any action based upon this information.