Capital Gains Tax in Oregon (2026)
Oregon has no special capital gains rate — the state taxes your gain as ordinary income across four brackets from 4.75% to 9.9%, stacked on top of the federal 0/15/20% tax and the 3.8% NIIT. Run the combined number below.
Reviewed & updated · 2026 tax-year figures · Federal + Oregon state
Oregon does not have a preferential long-term capital gains rate. Under ORS 316.037, both short- and long-term gains are taxed as ordinary income across four brackets — 4.75%, 6.75%, 8.75% and 9.9%. The top 9.9% rate begins at $125,000 of taxable income for a single filer ($250,000 married). That state tax is added on top of the federal capital gains tax (0/15/20% long-term under IRC §1(h)) and the 3.8% NIIT (§1411). A top-bracket Oregonian can face a combined rate near 33.7% on a long-term gain — before any Portland-metro local tax.
Net proceeds $174,800$26,200
Show our work federal + OR, step by step
Estimates only, for the 2026 tax year. Not tax advice. Oregon’s 9.9% top-rate threshold ($125,000 single / $250,000 joint) is fixed by statute; the lower bracket boundaries and standard deduction are inflation-indexed each year by the Oregon Department of Revenue. Figures are the 2026 amounts, owner-verifiable against the OR DOR. Portland-metro local taxes are not included in the statewide estimate.
How does Oregon tax capital gains?
Oregon gives capital gains no break at all. Under ORS 316.037, a capital gain is simply part of your Oregon taxable income and is taxed at the same graduated rates as wages — four brackets running 4.75%, 6.75%, 8.75% and 9.9%. There is no equivalent of the federal 0/15/20% long-term schedule and no distinction between short-term and long-term at the state level. Whether you held the asset a week or a decade, Oregon taxes the whole gain as ordinary income.
Oregon’s brackets are steep at the bottom and flat at the top: the 8.75% rate already applies above roughly $10,900 of taxable income (single), and the top 9.9% rate begins at $125,000 ($250,000 married). So for most sellers a capital gain lands almost entirely in the 8.75%–9.9% range. Oregon has no statewide sales tax and no general local income tax — but the Portland metro area is the exception (see below).
How does Oregon stack on top of federal?
The two systems run in parallel and the amounts are added — Oregon does not replace or absorb the federal tax. For a long-term gain, you owe:
- Federal: 0%, 15%, or 20% depending on where the gain stacks on your taxable income, under IRC §1(h);
- Federal NIIT: an extra 3.8% on net investment income once MAGI passes $200,000 (single) / $250,000 (joint), under IRC §1411; and
- Oregon: your marginal state rate, 4.75%–9.9%, on the full gain under ORS 316.037 (plus Portland-metro local tax if you live there).
Add those together and a top-bracket Oregonian with a long-term gain can pay roughly 20% + 3.8% + 9.9% ≈ 33.7% — and a Portland-metro resident can add up to ~4% more. A short-term gain is worse, because the federal side jumps to ordinary rates (up to 37%) instead of 20%. The calculator above computes the statewide layers separately.
What are the 2026 Oregon income-tax brackets?
These are the marginal brackets Oregon applies to your gain, shown for a single filer (2026). Married-filing-jointly and head-of-household use the doubled schedule — the same rates with thresholds twice as wide, topping out over $250,000. The calculator uses the correct schedule for your status. Owner-verifiable against the Oregon Department of Revenue.
| Oregon taxable income (single, 2026) | Marginal rate |
|---|---|
| $0 – $4,350 | 4.75% |
| $4,350 – $10,900 | 6.75% |
| $10,900 – $125,000 | 8.75% |
| Over $125,000 | 9.9% |
| Statewide local income tax on gains | None |
How this calculator works & where the numbers come from
No black box. The federal side uses the same unit-tested engine as our main calculator: net gain = proceeds − basis; classify by holding period; for long-term gains, subtract the standard deduction and stack the gain across the 0/15/20% bands per IRC §1(h); add 3.8% NIIT where modified AGI crosses the §1411 threshold; short-term gains are computed as the true marginal difference in ordinary tax. The Oregon side takes the same taxable gain (after any §121 exclusion, since Oregon begins from federal taxable income), subtracts the Oregon standard deduction from your ordinary income, and stacks the gain across the Oregon marginal brackets (4.75%/6.75%/8.75%/9.9%) under ORS 316.037 using the schedule for your filing status. The two results are summed. Portland-metro local taxes are noted separately, not added.
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Primary sources (linked, not just named)
- ORS 316.037 — imposition & rates of tax
- Oregon Department of Revenue — personal income tax
- Oregon DOR — rate schedule & standard deduction
- 26 U.S.C. §1(h) — federal capital gains rates
- 26 U.S.C. §1411 — 3.8% NIIT
- 26 U.S.C. §121 — home-sale exclusion
- IRS Topic No. 409 — Capital Gains and Losses
- IRS Publication 550 — Investment Income
Oregon capital gains tax, answered
Does Oregon have a separate capital gains tax rate?
No. Oregon has no preferential capital gains rate. Under ORS 316.037, a capital gain — short-term or long-term — is taxed as ordinary income across four brackets: 4.75%, 6.75%, 8.75% and 9.9%. The federal short/long distinction does not exist at the Oregon level.
How much is capital gains tax in Oregon for 2026?
Your Oregon tax equals the gain taxed at your marginal state rate (4.75%–9.9%), added to the federal capital gains tax. Federally, a long-term gain is taxed at 0/15/20% (IRC §1(h)) plus 3.8% NIIT for high earners. A top earner can pay near 20% + 3.8% + 9.9% ≈ 33.7% combined, before any Portland-metro local tax. Use the calculator above for your exact figure.
How does Oregon capital gains tax stack on top of federal?
They are computed separately and summed. The federal side taxes long-term gains at 0/15/20% and adds 3.8% NIIT for high earners; short-term gains are ordinary income. Oregon ignores the holding period and taxes the entire gain as ordinary income at 4.75%–9.9%. Your total tax is federal + NIIT + Oregon.
Do Portland-area local taxes apply to my capital gain?
Yes, if you live in the Portland tri-county metro. The Multnomah County Preschool for All tax (1.5%, rising to 3%) and the Metro Supportive Housing Services tax (1%) both reach capital gains above their income thresholds, adding up to about 4% for high earners. Outside the Portland metro, Oregon has no local income tax on gains. This statewide calculator does not add the Portland-metro rate.
Does the 3.8% federal NIIT apply to Oregonians?
Yes — the NIIT is federal and applies in every state. Once modified AGI exceeds $200,000 (single) or $250,000 (married filing jointly), the 3.8% surtax under IRC §1411 hits the lesser of your net investment income or the amount over the threshold. It is added to your federal capital gains tax and is entirely separate from Oregon state tax.
Does Oregon conform to the $250k/$500k home-sale exclusion?
Yes. Oregon begins from federal taxable income, so the IRC §121 exclusion of up to $250,000 ($500,000 married filing jointly) on a primary residence is already removed before Oregon applies its rates. Only gain above the exclusion is taxed, as ordinary income. See our home-sale hub for the mechanics.
Compare Oregon with other state hubs
Oregon’s 9.9% top rate is one of the highest in the nation — level with Minnesota (9.85%) and above New York for many incomes, heavier than Virginia (5.75%) and flat-tax Illinois (4.95%), and below only California (13.3%). Unlike those states, Oregon has no sales tax. It is far above the no-income-tax states like Texas and Washington. Every state page combines the same unit-tested federal engine with that state’s own rules. The main Capital Gains Tax Calculator lets you fold any state’s rate into your federal receipt.