Every Portland-area tax on one page
| Tax | Who owes it | Threshold | Rate |
|---|---|---|---|
| Metro SHS | Individuals living or working in the Metro district; businesses in the district | $128,000 single / $205,000 joint (2026) | 1% above the threshold |
| Multnomah PFA | Individuals living or working in Multnomah County | $125,000 single / $200,000 joint | Tiered, from 1.5% |
| Portland Arts Tax | City of Portland residents 18+ above the income floor | Household above federal poverty level, individual income $1,000+ | $35 flat per person |
| Portland BLT & Multnomah BIT | Businesses operating in the city and county | Gross receipts thresholds apply | Percentage of apportioned net income |
| Oregon CAT | Businesses with Oregon commercial activity | $1 million taxable commercial activity | Flat amount plus a percentage of activity above $1M |
| Transit taxes | Employers and the self-employed in transit districts | No threshold for statewide transit | Small percentages, several of them |
| Oregon kicker | Oregon taxpayers, in surplus years | Filed an Oregon return for the prior year | A credit, not a tax |
Why this is so confusing
Four different governments levy taxes on a Portland resident’s income: the federal government, the State of Oregon, Metro, and Multnomah County — plus the City of Portland for the Arts Tax and business taxes. Each has its own boundary, its own threshold and its own return. The boundaries do not line up with each other, and none of them line up with ZIP codes.
Read about each one
- Metro Supportive Housing Services tax1% above the threshold
- Multnomah County Preschool for AllTiered, county only
- Portland Arts Tax$35 a head, easy to miss
- Portland business taxes untangledBLT vs BIT vs SHS vs CAT
- Oregon Corporate Activity TaxOn receipts, not profit
- Oregon PTE-E electionA SALT cap workaround
- Oregon transit taxesStatewide, TriMet, self-employment
- The Oregon kickerThe one that pays you
I moved to Portland this year. Which of these will I owe?
Almost certainly Oregon income tax and the Arts Tax if you live in the city. Metro SHS and Preschool for All depend on your income level and your exact address. Nothing is withheld for most of these by default, so the first year often arrives as a bill.
Are these deductible on my federal return?
State and local income taxes are deductible as itemized deductions subject to the federal SALT cap. For business taxes paid by a business, the treatment differs. The PTE-E election exists precisely to move some Oregon tax outside the individual cap.
What happens if I have never filed the local returns?
They are correctable, and the sooner the better since penalties and interest accrue. Prior-year local returns are routine work for us.
Does my employer withhold these?
Employers have withholding obligations for Metro SHS and Preschool for All for employees over the thresholds, and many get it wrong or start late. The Arts Tax is never withheld. Estimated payments may be needed for the rest.
Not sure which of these apply to you?
Most Portland-area households owe at least two of these and know about one. An appointment sorts out which returns you actually need to file.
Written by
Enrolled Agent, Oregon Licensed Tax Consultant
License number: Enrolled Agent 00160070-EA · Oregon Licensed Tax Consultant 35746-C
Heather has spent more than a decade preparing individual and business returns across the Portland metro and the Columbia Gorge, and holds unlimited rights to represent taxpayers before the IRS.
Last reviewed
This page is general information about Oregon, Washington and federal tax rules, not advice about your own return. Thresholds and rates change every year. Figures were verified as of August 2026 — check the linked official sources, or talk to us about your situation.