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Year-end & tax season checklist

Offices in Clackamas & The Dalles, Oregon

503-785-3200

Heather’s Tax Service & More

Payroll · Portland, OR

Payroll services in Portland, Oregon

Portland employers carry two local withholding obligations most payroll systems do not set up by default — and both of them are the employer’s problem when they are missed.

Two colleagues working through figures on a laptop in a shop

Why Portland is different

Metro SHS and Multnomah Preschool for All both carry employer withholding duties for employees over the thresholds. The two taxes have different boundaries and different thresholds, so one setup does not cover both.

Portland employers also handle Paid Leave Oregon, the statewide transit tax, the TriMet payroll tax and unemployment insurance, plus federal withholding — see Oregon payroll compliance.

Remote employees are where it goes wrong. An employee working from home in Vancouver is generally not performing Oregon work, and withholding Oregon tax for them costs the employee cash flow all year.

Which tax jurisdictions apply here

  • Inside the Metro district, so Metro SHS applies to income above $128,000 single / $205,000 joint.
  • Inside Multnomah County, so Preschool for All applies above $125,000 single / $200,000 joint.
  • Inside the City of Portland, so the Arts Tax applies at $35 per qualifying adult.
  • Portland Business License Tax and Multnomah County Business Income Tax apply to businesses operating here — see Portland business taxes.
  • Inside the TriMet district, so the TriMet self-employment tax reaches self-employed people working here — see transit taxes.

What payroll includes

Payroll processing plus the Oregon compliance layer — Paid Leave, transit taxes and local withholding.

Two colleagues working through figures on a laptop in a shop

Working with us

Payroll for Portland, OR

Fifteen to twenty-five minutes from our Clackamas office depending on which side of the river you are on, and most Portland clients work with us remotely in any case.

How we run payroll

The tax rules specific to this area are on the Portland, OR page.

Questions from Portland

Do I owe both Metro SHS and Preschool for All?

If you live in the City of Portland and your income is above both thresholds, yes — they are separate taxes with separate calculations. Portland sits inside both the Metro district and Multnomah County.

I live in Portland but work in Vancouver. Does that help?

Not for Oregon tax. Oregon taxes residents on worldwide income and Washington levies no wage tax, so there is nothing to credit. Your local taxes follow your Portland residency regardless of where you work.

My address says Portland but I am not sure I am in the city.

Common, particularly in unincorporated Multnomah County and near the Washington County line. A Portland mailing address is not the same as being inside city limits. Use the official address lookup — it changes whether you owe the Arts Tax.

Payroll in Portland

Call 503-785-3200 or schedule an appointment. We will tell you what your situation actually needs before any work starts.

Katie Wells, bookkeeper

Written by

Katie Wells

Bookkeeper, 25+ years

Katie has kept books for small businesses for more than 25 years — QuickBooks, payroll, AP, AR, reconciliations and monthly reporting.

Reviewed by

Heather Perkins

Enrolled Agent, Oregon Licensed Tax Consultant

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.

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