Portland Metro local tax guide
Who pays Portland Metro's local tax
Residents of the Metro district and of Multnomah County owe these taxes on taxable income above the thresholds, wherever they earn it. Nonresidents, including Vancouver commuters, owe them only on income earned inside the district or county. Metro covers the urban parts of Multnomah, Washington, and Clackamas counties, while Preschool for All is Multnomah County only, so a job in Beaverton or Oregon City carries at most the Metro tax for someone who lives outside Multnomah County. Employers must withhold only once wages reach $200,000, and anyone below that can opt in. Everyone who owes files a return through the City of Portland.
How the Metro and Multnomah County taxes work
Both taxes start from Oregon taxable income, not gross wages. The Supportive Housing Services tax funds homeless services across the Metro region, and Preschool for All funds tuition-free preschool in Multnomah County. Each exempts income up to a threshold that is lower for single filers than for joint filers, and Metro began indexing its thresholds to inflation in 2026.
Our calculator models what a Portland-core worker owes for the year, by filing status. For a single filer, Preschool for All starts first, the Metro tax begins a little higher, and the two together reach a combined 2.5% on income above both thresholds. A second Preschool for All tier lifts the combined rate to 4% on the highest incomes. Joint filers get higher thresholds at each step.
Worked example: $75,000 in Portland
The federal bill for a single $75,000 earner is $7,670. Oregon subtracts that federal tax and its $2,910 standard deduction, taxes the remaining $64,420 at rates up to 8.75%, and then allows a $263 personal exemption credit, for $5,055. On top of that, FICA withholds $4,650 for Social Security and $1,088 for Medicare.
Neither local tax reaches this salary, so take-home pay is $56,537, about $4,711 a month. In Eugene, where a 0.44% city payroll tax applies to ordinary wages, the same worker would keep $330 less. See the Eugene calculator for that comparison.
Portland Metro taxes: liability versus withholding
What you owe and what your employer takes out are different numbers here. At $150,000, Oregon taxable income is $147,090, above the single-filer exemption for both taxes, so a single Portland resident owes $522, an effective 0.35% of salary, and takes home $100,464 instead of $100,986. Our page shows that liability.
Employers, however, must withhold only once wages reach $200,000. A single filer earning well into six figures but below that line will usually see nothing on the pay stub and a bill in April. Opt in to withholding with your employer or make estimated payments to spread it out. Both taxes are filed separately from Form OR-40, through Portland Revenue Online, with the same April deadline.
Other Portland payroll items and how the region compares
Our estimate leaves out Portland's Arts Tax, a flat annual charge on adult city residents with income above a low threshold, along with Oregon's statewide transit tax and Paid Leave Oregon contributions withheld from wages. The TriMet transit tax is paid by employers, not employees.
Oregon itself ranks 51st of 51 for take-home pay at $75,000. Vancouver residents who work in Portland still owe Oregon tax on those wages, filing Form OR-40-N, so the Washington move mainly helps those whose jobs are in Washington. The state comparison tool lines up Oregon and Washington side by side.
Tips for Portland Metro paychecks
Single filers: check the threshold, not the stub
A $0 local line on your pay stub does not prove you owe nothing. Compare your Oregon taxable income with the current single-filer exemptions published by Metro and Multnomah County.
Opt in to avoid a spring bill
Employers in the Metro district must offer withholding to all employees. Filing the opt-in form spreads the tax over the year instead of leaving it for April.
Know which county your job is in
Only Multnomah County triggers Preschool for All for nonresidents. A job in Hillsboro or Tigard inside the Metro boundary can owe Metro's tax alone.
Use pre-tax savings
Because both taxes start from Oregon taxable income, traditional 401(k) and HSA contributions can keep income under the exemption while also cutting state and federal tax.