Oregon Bonus Tax Calculator 2026
Oregon allows a flat 8% state withholding on a bonus paid at a different time than the regular payday.
Bonus check calculator
8% when the bonus is paid apart from payday
The Oregon Withholding Tax Formulas effective January 1, 2026 include an "alternative withholding method for supplemental wage payments": employers "may use a 8 percent flat rate to figure withholding on supplemental wages that are paid at a different time than an employee's regular payday." Bonuses, overtime and commissions all qualify. That is $400.00 on $5,000 and $320.00 on $4,000. A bonus folded into a regular paycheck goes through the Oregon formula instead.
Exemption elections expire every February
An employee who claimed exemption from Oregon withholding must give the employer a new Form OR-W-4 by February 15 of each year to keep it; otherwise the employer withholds at the flat 8% rate. A bonus paid after a lapsed exemption is therefore withheld at 8% even if the employee owes no Oregon tax — and the money comes back only through the return.
Payroll deductions not shown
Oregon employees also see deductions for the statewide transit tax and Paid Leave Oregon on their stubs. We could not verify the 2026 rates for those programs from the agencies' own pages today, so they are not included in the net figure.
| Rule | Optional flat 8% on supplemental wages paid apart from payday |
|---|---|
| Valid through | December 31, 2026 |
| Documents | Oregon Withholding Tax Formulas (150-206-436), Effective January 1, 2026 (2026) |
| Agency | Oregon Department of Revenue |
| Federal income tax | −$1,100.00 |
| Social Security | −$310.00 |
| Medicare | −$72.50 |
| Oregon income tax | −$400.00 |
| Net | $3,117.50 |