Oregon no tax on tips calculator — one of the largest state savings
Oregon gives tipped workers both protections: “Oregon allows the same deduction for tip income that is allowed on your federal return,” and tip credits are illegal, so every region’s full minimum is paid before tips.
Subtraction code 390
Oregon starts from federal AGI and returns the tips deduction through a subtraction under ORS 316.048 — code 390 on Schedule OR-ASC for full-year residents. Nonresidents may subtract only tips received while physically working in Oregon. Because Oregon’s rate reaches 8.75% at $11,400 of taxable income for a single filer in 2026 ($22,800 joint), the state saving is close to 8.75% of the deduction for most full-time tipped workers. For 2025, Oregon publishes a tax table below $50,000 instead of rates, so the calculator asks you to pick your band.
Oregon figures
| Portland metro (inside the urban growth boundary) | $16.80 (no tip credit) |
|---|---|
| Standard counties | $15.55 (no tip credit) |
| Non-urban counties | $14.55 (no tip credit) |
| In force | July 1, 2026 – June 30, 2027 |
| Next change | after June 30, 2027 — not yet published |
| Tipped threshold | Not applicable — no tip credit |
| Tips on the 2025 return | state allows the federal tips amount. Publication OR-17: “Oregon allows the same deduction for tip income that is allowed on your federal return” (ORS 316.048, subtraction code 390). Source: Oregon Department of Revenue |
| Tips on the 2026 return | state allows the federal tips amount. ORS 316.048 continues the subtraction. Source: Oregon Department of Revenue |
Three minimum wages, no tip credit
From July 1, 2026 to June 30, 2027 BOLI sets $16.80 in the Portland metro urban growth boundary, $15.55 in standard counties and $14.55 in non-urban counties. Employers may require tip pooling, but managers and the house may not share in the pool.
A Portland server
The $20,000 deduction saves $2,400 federally and about $1,750 on the Oregon return — $4,150 together. Thirty hours at the Portland rate cost $504 before tips; the $250 of tips are all extra.
Check an Oregon week by region
Where these figures come from
- Oregon Department of Revenue · Oregon Bureau of Labor and Industries
- 2025 Publication OR-17, Oregon Individual Income Tax Guide (2025)
- 2026 Oregon Estimated Income Tax Instructions (2026)
- Minimum Wages for Tipped Employees (table by state) (2026-07-01)
- Minimum wage (BOLI) (2026)
Federal rules: how the deduction works. Nearby: Washington, Idaho, Nevada, California.
Figures verified against primary sources on