2025 Tax Year

Oregon Side Hustle Tax Calculator

Calculate your Oregon state tax (8.75%), federal tax, and self-employment tax on 1099 income.

OR8.75%

4.2 million residents

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2025 rates

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Last updated: January 2026 · Data from IRS Rev Proc 2024-40

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State

W-2 Income (from your day job)

Side Hustle Income *

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Oregon side hustlers face some of the highest state income tax rates in the country, with progressive rates reaching up to 9.9%. For most freelancers, the effective rate is around 8.75%. The good news? Oregon has no sales tax, which helps offset the higher income tax burden. The state's strong tech sector in Portland and growing creative economy make it home to over 400,000 gig workers.

Oregon Tax Guide

How Side Hustle Taxes Work in Oregon

Oregon uses a progressive income tax system with four brackets:

**Oregon state tax rates (2025):** - 4.75% on income up to $4,050 (single) - 6.75% on $4,051 - $10,200 - 8.75% on $10,201 - $125,000 - 9.9% on income over $125,000

**No sales tax:** - Oregon is one of five states with no sales tax - This partially offsets the higher income tax rates

**No local income taxes:** - Portland and all Oregon cities do not levy income taxes - Some cities have business license fees, but these are typically minimal

Example

What Oregon Side Hustlers Owe

Let's say you're a single filer in Portland with a $60,000 W-2 job and $20,000 in side hustle income from freelance software development, with $4,000 in business expenses.

**Your estimated taxes on the side hustle:** - Net self-employment income: $16,000 - Federal SE tax (15.3% of 92.35%): ~$2,263 - Federal income tax on side income: ~$3,520 (22% bracket) - Oregon state tax (8.75%): ~$1,400 - **Total additional tax: ~$7,183**

Your effective rate on the side hustle is approximately 45%—among the highest in the country.

Important Dates

Oregon Tax Deadlines 2025

Oregon estimated tax deadlines: - **Q1**: April 15, 2025 - **Q2**: June 16, 2025 - **Q3**: September 15, 2025 - **Q4**: January 15, 2026

Use Oregon Form 40-ESV for state estimated tax payments.

Save Money

Common Deductions for Oregon Freelancers

Common deductions for Oregon freelancers include: - Home office expenses - Business mileage (67 cents/mile for 2025) - Equipment and software (especially important for tech freelancers) - Professional development - Oregon uses federal taxable income as its starting point

Common Questions

Oregon Side Hustle Tax FAQ

What is Oregon's tax rate on side hustle income?

Oregon has progressive rates from 4.75% to 9.9%. Most side hustlers with income between $10,201 and $125,000 pay 8.75% on their marginal earnings.

Does Portland have a city income tax?

No, Portland and all Oregon cities do not have local income taxes. Some cities have business license fees, but these are typically small flat fees.

Does Oregon's lack of sales tax help offset the income tax?

Yes, Oregon is one of five states with no sales tax. This can save residents thousands annually on purchases, partially offsetting the higher income tax rates.

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