The four, side by side
| Tax | Levied by | Base | Broad threshold |
|---|---|---|---|
| Business License Tax | City of Portland | Net income apportioned to Portland | Gross receipts floor; small businesses exempt below it |
| Business Income Tax | Multnomah County | Net income apportioned to the county | Gross receipts floor |
| Metro SHS business tax | Metro | Net income apportioned to the Metro district | Gross receipts floor |
| Corporate Activity Tax | State of Oregon | Commercial activity — receipts, not profit | $1 million of taxable commercial activity |
Apportionment: why the same profit is taxed three times differently
Each jurisdiction taxes the share of your income attributable to its territory, using market sourcing — broadly, where the customer receives the benefit of what you sold. A business selling to customers across the metro therefore computes three different apportionment percentages on the same profit: a Portland percentage, a Multnomah County percentage, and a Metro district percentage. They are related but not identical, because the geographies are not identical.
- A Beaverton consultancy serving Portland clients has Portland-apportioned income despite having no Portland office
- A Portland business serving only Vancouver clients may have little Portland-apportioned income despite being physically in the city
- Books that cannot show where revenue was sourced cannot support any of these returns without a reconstruction — see bookkeeping
The registration trap
Businesses operating in Portland are generally required to register with the Revenue Division regardless of whether tax is owed, and a business under the exemption threshold may still have a filing obligation to claim that exemption. Discovering this several years in is common, and the fix is retroactive registration and filing rather than anything worse.
I am a sole proprietor. Do these apply to me?
Yes. These are taxes on business activity, not on entity type. A Schedule C business in Portland has the same city and county obligations as an S-corp.
I work from home. Does that count as operating in Portland?
Generally yes, if the home is in the city and the business is conducted from it. Physical presence is one trigger; apportioned receipts are another.
Do rental properties count as a business for these?
Rental activity is generally within scope for the city and county business taxes, and Portland has its own residential rental registration requirement on top. See rental property.
Which one do I file first?
They are annual filings that generally follow your federal return, so the sequence is: books closed, federal return, then the state and local layer. Getting the books right is what makes the rest fast.
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.