Surprise! Oregon is bad for business!

 Overly-taxed, overly-regulated, under-appreciated and seen as    , Oregon’s political class has made the state a very difficult place to do business.  

In order to survive, all businesses, even non-profits, have to at least break even.  If businesses are to flourish and grow - hire more people, raise wages and benefits, purchase more equipment, etc., they need to make a profit.  If government at any level makes profitability difficult or impossible or creates an atmosphere of uncertainty, owners and investors will take their money elsewhere.  

The state of Oregon and certain left-leaning cities have plucked the commercial money tree bare, and can’t be trusted not to continue their grift for money from increased taxes and fees from so-called wealthy residents.  In 2023 the legislature floated a wealth tax in the form of a state property tax that included both real and “intangible” property with carveouts for certain lower income citizens TBD.  Interpretation:  Wealth taxes for the rich.  This is an idea that is so bad it will no doubt make a comeback in Oregon, so watch for it!  

After businesses and wealthy people leave the state, how will politicians, activists, Utopians, socialists and the economically-uneducated pay for all the things they want government to provide?  But why should you care - especially if you work for the government?

                                  NO ONE SHOULD THINK THAT THEIR BUSINESS,                                                PROPERTY OR NET WORTH IS SAFE IN OREGON

Taxing business is the way politicians pretend they aren’t raising taxes on the people who vote for them.  

Oregon is making news now on its awful tax competitiveness compared with other states.  Trouble is, WE have to live with it!  Or not…  there are also lists of states where one’s rights and property is protected.    

PORTLAND IS ON TOP!

Portland Oregon

It’s no secret that the Portland area has high taxes. The region is known for the world’s largest bookstore, its breweries, a vibrant art scene, and the old PDX airport carpet, but decidedly not for its commitment to tax competitiveness.

Portland residents face some of the highest taxes in the country. City, county, regional, and state taxes on individual and both net and gross business income combine to create a crushing tax wedge, yielding some of the highest marginal rates on wage income nationwide. And after factoring in the average net income effect of the Oregon Corporate Activity Tax (CAT), Portland easily has the nation’s highest marginal effective rates on both corporate and pass-through business income.

Because this tax burden is spread across so many taxes—the Supportive Housing Services Tax at the Metro level, for instance, combined with the Business Net Income Tax imposed by Multnomah County and the Business License Tax levied in Portland, all atop Oregon’s state individual income tax and gross receipts-based CAT—it can be difficult to appreciate the full burden. Unless you’re paying it.

Workers, business owners, and investors in Portland, Multnomah County, and the Metro region all experience these considerable burdens. Portland has the highest business taxes—on small and large businesses, and pass-throughs and corporations alike—and the second highest top marginal rate on wage income in the country.

https://taxfoundation.org/location/oregon/

Oregon Tax Rates, Collections, and Burdens

How does Oregon’s tax code compare? Oregon has a graduated state individual income tax, with rates ranging from 4.75 percent to 9.9 percent. There are also jurisdictions that collect local income taxes, with high taxes in the Portland Metro area. Oregon has a graduated corporate income tax, with rates ranging from 6.6 percent to 7.6 percent. The state levies a gross receipts tax in addition to the corporate income tax. Oregon does not have a state sales tax. Oregon has a 0.78 percent effective property tax rate on owner-occupied housing value.

Oregon has an estate tax. Oregon has a 40 cents per gallon gas tax rate and a $3.33 cigarette excise tax rate (per pack of 20 cigarettes). The State of Oregon collects $6,920 in state and local tax collections per capita. Oregon has $10,066 in state and local debt per capita and an 81 percent funded ratio of public pension plans. Oregon’s tax system ranks 35th overall on the 2026 State Tax Competitiveness Index.

Each state’s tax code is a multifaceted system with many moving parts, and Oregon is no exception. The first step toward understanding Oregon’s tax code is knowing the basics. How does Oregon collect tax revenue? Click the tabs below to learn more! You can also explore our state tax maps, which are compiled from our annual publication, Facts & Figures 2025: How Does Your State Compare?

Movers and Shakers in the 2026 State Tax Competitiveness Index

November 3, 20256 min readBy: Janelle Fritts

The Tax Foundation’s State Tax Competitiveness Index enables policymakers, taxpayers, and business leaders to see how their states’ tax systems measure up across a wide range of tax measures. While there are many ways to show how much state governments collect in taxes, the Index evaluates how well states structure their tax systems and provides a road map for improvement.

The Tax Foundation has published this study, previously called the State Business Tax Climate Index, since 2003. Last year, we updated the methodology to more comprehensively address a range of emerging tax issues. As with any methodological changes, we apply them to prior years as well to allow for an apples-to-apples comparison across years. Currently, backcasting under the new methodology stretches back to fiscal year 2020 (July 1, 2019).

In the spirit of change and improvement, it’s worth looking back to see which states have truly embraced tax competitiveness since 2020, and which ones have lagged behind.

The five states that saw the largest improvements in their rank over the last six years are:

1. Tennessee, which ranked 38th in 2020, now ranks 8th.
2. Iowa, which ranked 43rd in 2020, now ranks 17th.
3. Georgia, which ranked 28th in 2020, now ranks 18th.
4. Louisiana, which ranked 40th in 2020, now ranks 31st.
5. Arkansas, which ranked 41st in 2020, now ranks 34th.

The five states that fell the furthest in the rankings in the last six years are:

1. Oregon, which ranked 8th in 2020, now ranks 35th.
2. Washington, which ranked 33rd in 2020, now ranks 45th.
3. Colorado, which ranked 22nd in 2020, now ranks 33rd.
4. New Mexico, which ranked 20th in 2020, now ranks 28th.
5. Massachusetts, which ranked 36th in 2020, now ranks 43rd.