What it is
Voters approved a regional measure funding supportive housing services, financed by a personal income tax and a business income tax within the Metro district — the elected regional government covering the urban parts of Clackamas, Multnomah and Washington counties. It is not a City of Portland tax and it is not a Multnomah County tax; it is its own jurisdiction with its own boundary.
| Filing status | 2026 threshold | Rate above the threshold |
|---|---|---|
| Single | $128,000 | 1% |
| Married filing jointly | $205,000 | 1% |
Who owes it
- Residents of the Metro district, on income above the threshold wherever it was earned
- Non-residents, on income sourced to the district above the threshold — including Washington residents working at a Portland or Beaverton office
- Businesses in the district owe a separate 1% business income tax — see Portland business taxes
Where the district actually is
The Metro district covers the urbanised portion of the tri-county area — broadly the region inside the urban growth boundary. Portland, Gresham, Beaverton, Hillsboro, Tigard, Lake Oswego, Milwaukie, Happy Valley and Oregon City are inside it. Sandy, Estacada, Molalla, Canby, Newberg and everything in the Gorge are outside it. The boundary is not a county line and it is not a ZIP code, so use the official address lookup rather than assuming.
Withholding and payments
- 1Employers are required to withhold for employees working in the district who earn above the threshold; employees can also request withholding.
- 2Where nothing is withheld — self-employed people, investment income, a spouse’s income pushing a joint return over — quarterly estimates may be required.
- 3The annual return is filed with the Portland Revenue Division, which administers the tax for Metro.
- 4Penalties and interest apply to underpayment, and the first year of liability is when most people discover it.
Is this the same as the Preschool for All tax?
No. Preschool for All is Multnomah County only, with different thresholds and a tiered rate. Many Portland residents owe both, and they are separate calculations on the same return form.
I live in Vancouver but work in Portland. Do I owe it?
On income sourced to the Metro district above the threshold, yes — even though you owe no Oregon tax on your Washington workdays. See the cross-border guide.
Does it apply to retirement income?
It applies to Oregon taxable income as defined for the tax, which includes many retirement income streams. Confirm your specific situation rather than assuming an exclusion.
Can I reduce it?
Anything that reduces taxable income near the threshold reduces it proportionally — retirement contributions being the most common lever. That is a year-end planning conversation, not an April one.
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.