The basics
| Filing status | Threshold | Rate structure |
|---|---|---|
| Single | $125,000 | Tiered, beginning at 1.5% above the threshold |
| Married filing jointly | $200,000 | Tiered, beginning at 1.5% above the threshold |
Like Metro SHS, only income above the threshold is taxed. Unlike Metro SHS, the rate increases in tiers as income rises, so high earners pay a higher marginal rate on the upper portion.
How it differs from Metro SHS
| Metro SHS | Preschool for All | |
|---|---|---|
| Jurisdiction | Metro district — parts of three counties | Multnomah County only |
| Threshold (single) | $128,000 | $125,000 |
| Threshold (joint) | $205,000 | $200,000 |
| Rate | Flat 1% | Tiered from 1.5% |
| Who administers it | Portland Revenue Division for Metro | Portland Revenue Division for the County |
Non-residents owe it too
The tax applies to Multnomah County residents on income wherever earned, and to non-residents on income sourced to the county. A Lake Oswego resident who works in downtown Portland can owe Preschool for All on the county-sourced portion of their wages while owing nothing on their Clackamas County income. So can a Vancouver resident with Portland workdays.
If you have not been filing it
- 1Work out which years you were over the threshold and county-connected.
- 2File the prior-year returns — they are accepted and it is routine.
- 3Expect penalties and interest on late amounts; abatement is sometimes available.
- 4Set up withholding or estimates so it does not recur.
My employer is not withholding it. Is that their mistake or mine?
Employers do have withholding obligations for employees working in the county above the threshold, but the liability is yours regardless. If nothing is being withheld, set up estimated payments rather than waiting to see.
I moved out of Multnomah County mid-year.
You owe on the resident portion of the year, plus anything still sourced to the county afterwards — for instance if you kept working at a Portland office.
Does it apply to capital gains?
It applies to taxable income as defined for the tax, which reaches more than wages. A large one-off gain can create a liability in a year that otherwise would not have one.
Is there any way to reduce it?
The same levers as any income-based tax — pre-tax retirement contributions being the main one — plus timing where income sits near the threshold. That is a planning conversation before year end.
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.