OREGON RETIREMENT INCOME TAX · TAX YEAR 2026
Does Oregon tax Social Security and retirement income?
Oregon does not tax Social Security benefits. Oregon taxes pensions and 401(k) and IRA withdrawals at its regular rates. A single 67-year-old with $24,000 of Social Security, a $20,000 private pension and $10,000 of IRA withdrawals pays $1,525 in Oregon income tax for 2026.
Your estimate
- Oregon income tax
- $1,525.00
- Federal income tax
- $1,810.00
- Total income tax
- $3,335.00
Subtracted from Oregon income
- Social Security
- $11,300.00
- Additional standard deduction (65+)
- $1,200.00
Not yet published for 2026: Additional standard deduction at 65, unmarried $1,200 (latest published, 2025); Additional standard deduction at 65, married, each $1,000 (latest published, 2025).
The federal pension subtraction for service before October 1, 1991 is not modeled; it depends on service history.
Oregon tax at different retirement incomes
Oregon income tax for 2026 on a single 67-year-old with $24,000 of Social Security, and on a married couple, both 67, with $20,000 each. Half the pension and IRA income is a private pension and half IRA withdrawals, all received by one spouse in the couple.
| Pension and IRA income | Single | Married |
|---|---|---|
| $20,000 | $808 | $114 |
| $40,000 | $2,206 | $1,546 |
| $60,000 | $3,682 | $2,957 |
| $100,000 | $7,306 | $6,136 |
| $150,000 | $12,687 | $10,511 |
Does Oregon tax Social Security?
No. Oregon doesn't tax any Social Security or Railroad Retirement benefits.
Of the single 67-year-old's $24,000 in benefits, $11,300 is federally taxable and Oregon taxes none of it. Of the couple's $40,000, $28,100 is federally taxable and Oregon taxes none of it.
Does Oregon tax pensions?
Yes. Private, Oregon government and military pensions are taxed. The share of a federal pension, including military retirement, earned before October 1, 1991 can be subtracted; the calculator does not model it. Retirees 62 or older can claim a credit of 9% of taxable pension and IRA income only when household income is under $22,500 ($45,000 joint) and Social Security is under $7,500 ($15,000 joint). Social Security and household income above $15,000 ($30,000 joint) reduce it. HB 2087 (2025) extended the credit through 2032.
State tax for a single 67-year-old with $24,000 of Social Security, a $20,000 pension of each type and $10,000 of IRA withdrawals. Excluded is the part of the pension Oregon exempts.
| Pension | Excluded | State tax |
|---|---|---|
| Private | $0 | $1,525 |
| Oregon government | $0 | $1,525 |
| Federal civil service | $0 | $1,525 |
| Military | $0 | $1,525 |
Does Oregon tax IRA and 401(k) withdrawals?
Yes. IRA and 401(k) withdrawals are taxed at the regular rates and count toward the retirement income credit at 62. Amounts Oregon has already taxed can be subtracted.
With $24,000 of Social Security, $20,000 of IRA withdrawals and no other income, a single 67-year-old pays $808 in Oregon income tax for 2026.
At what age do retirement tax breaks start in Oregon?
At 62, for the retirement income credit, which needs low household income and low Social Security. At 65, the standard deduction rises by $1,200 (latest published, 2025) for a single filer or $1,000 (latest published, 2025) for each married spouse 65 or older.
State tax at each age where the rules change. The single filer has $24,000 of Social Security, a $20,000 private pension and $10,000 of IRA withdrawals; the couple, both that age, has $20,000 of Social Security each and a $30,000 pension and $20,000 of IRA withdrawals.
| Age | Single | Married |
|---|---|---|
| 64 | $1,545 | $2,263 |
| 65Additional standard deduction (65+) | $1,525 | $2,249 |
What the calculator leaves out
The federal pension subtraction for service before October 1, 1991 is not modeled; it depends on service history.
- The retirement income credit sunset for 2026 and later was extended by HB 2087 (2025) per its staff summary; the credit is modeled.
- Household income for the retirement income credit is pension, IRA and other income entered.
- The federal tax subtraction bands inside the Oregon formula are measured on income after the Social Security subtraction.
The calculator uses Oregon rules from the 2025 forms and instructions, the latest published.
Figures not yet published for 2026
- Additional standard deduction at 65, unmarried: $1,200 (latest published, 2025).
- Additional standard deduction at 65, married, each: $1,000 (latest published, 2025).
Federal tax uses the 2026 brackets, the standard deduction with the extra amount at 65, and the $6,000 senior deduction. Estimates assume no other deductions, credits or local taxes except as noted.