Oregon Pay Stub,
Paycheck & Tax Guide

Oregon payroll has several state-specific layers that can appear on an employee's wage statement even though Oregon has no general sales tax. Employees can have Oregon income tax withholding, the Statewide Transit Tax and Paid Leave Oregon contributions in addition to federal income tax, Social Security and Medicare.

Oregon also has detailed itemized pay statement rules. Employers should calculate the wage first, classify each deduction correctly and show employees enough information to understand how net pay was reached.

Three Oregon Payroll Details That Change the Paycheck

Oregon payroll is easier to understand when three state-specific items are separated from ordinary federal taxes.

• Oregon income tax uses graduated tax brackets with rates ranging from 4.75 percent to 9.9 percent.
• The Statewide Transit Tax continues at 0.1 percent of qualifying wages in 2026.
• Paid Leave Oregon has a 1 percent total contribution rate in 2026. Employees generally pay 60 percent of that total rate, equal to 0.6 percent of covered wages up to the applicable annual limit.

For a deeper explanation of the state brackets and withholding rules, the Oregon income tax page keeps the annual income-tax calculation separate from this broader payroll guide.

Oregon Requires an Itemized Pay Statement

Oregon employers must provide an itemized wage statement when employees are paid. Direct deposit or a payroll card does not remove the statement requirement. An electronic statement can be used when the employee expressly agrees.

Oregon guidance identifies detailed information for the statement, including the payment date, pay period dates, employee and employer names, employer business information, rate or rates of pay and the basis on which the employee is paid. The statement also needs the relevant earnings and deductions.

After actual wages and deductions have been calculated, the Oregon pay stub generator can organize genuine payroll figures into an itemized document.

Oregon Minimum Wage Depends on Work Location

Oregon uses three minimum wage zones. Beginning July 1, 2026, the standard rate is $15.55 per hour, the Portland metro rate is $16.80 per hour and the nonurban county rate is $14.55 per hour.

The work location therefore matters before payroll taxes are calculated. An employer that starts with the wrong hourly rate will carry that error into gross pay, withholding and net pay.

How Oregon Take-Home Pay Is Calculated

Oregon take-home pay starts with gross wages then subtracts federal taxes, Oregon withholding and the state payroll deductions that apply to the employee.

Net Pay = Gross Pay - Federal Withholding - Oregon Withholding - Social Security - Medicare - Statewide Transit Tax - Paid Leave Employee Contribution - Other Deductions

The exact result changes with pay frequency, Form W-4 information, Form OR-W-4 information, benefits and the employee's earnings for the period. A Oregon paycheck calculator is useful when the goal is to estimate these amounts before a pay stub is created.

Paid Leave Oregon on the Pay Stub

The 2026 Paid Leave Oregon contribution rate is 1 percent of covered wages up to $184,500. Employees generally pay 60 percent of the total contribution rate. That means the standard employee contribution is 0.6 percent while a large employer generally pays the remaining 0.4 percent.

Small employers generally still withhold the employee portion even when they are not required to pay the employer portion. Approved equivalent plans can change how the program is administered, so payroll records should identify the contribution accurately rather than combining it with income tax.

The Statewide Transit Tax Is Separate From Income Tax

Oregon continues to require Statewide Transit Tax withholding at 0.1 percent of qualifying employee wages. The tax can apply even when regular Oregon income tax withholding is low or not required because the two taxes use different rules.

Employers should therefore keep the transit tax as a separate payroll item. It should not be rolled into an unexplained state withholding total if the pay record is intended to show employees how deductions were calculated.

Oregon Does Not Have a General Sales Tax

Oregon does not impose a general sales or use transaction tax. This is important for a payroll hub because users sometimes assume that every state tax shown elsewhere should appear on a paycheck.

The absence of a general retail sales tax does not mean Oregon has no transaction-based taxes. Vehicle privilege and vehicle use taxes are examples of narrower taxes that can still apply. The Oregon sales tax guide explains this no-general-sales-tax structure without treating it as a payroll deduction.

Oregon Employer Payroll Responsibilities

An Oregon employer needs to connect wage-and-hour compliance with tax reporting. The payroll process should account for the correct minimum wage zone, overtime for covered nonexempt workers, itemized wage statements and the state contributions that apply.

Oregon unemployment insurance is generally an employer payroll tax. For 2026, the state UI taxable wage base is $56,700 per employee. The tax rate depends on the employer's assigned schedule and experience.

Paid Leave Oregon reporting also runs through the state payroll reporting system. Employers need to distinguish employer contributions from employee withholdings even when both are reported through the same payroll process.

Paystub and Paycheck Are Related but Not the Same

A paycheck or direct deposit is the wage payment. A paystub explains the earnings and deductions behind that payment. Payroll is the process that produces both.

That distinction is especially useful in Oregon because one pay period can involve state income tax, transit tax and Paid Leave contributions at the same time. The wage statement should explain those items without implying that the document itself calculates or verifies the underlying payroll.

From Verified Payroll Figures to a Wage Statement

Before creating the final wage record, check that the pay period, rates, hours, gross wages and every deduction match the employer's actual payroll records.

When those figures are ready, you can make online paystub records from genuine employer and employee information. Online PayStub is intended for lawful payroll, business and recordkeeping use. It should not be used to fabricate employment or alter earnings history.