Oregon Payroll Taxes for Employers (2026): SUTA and State Programs
Last updated: 2026-10-12 · 2026 rates checked against Oregon Employment Department's own pages and the other official sources below
Oregon employers pay state unemployment tax (SUTA) on the first $56,700 of each employee's wages in 2026, and new employers pay 2.4% — at most $1,360.80 per employee for the year. Paid Leave Oregon and Oregon Workers' Benefit Fund assessment can add to the employer's cost in 2026, depending on headcount (details below). Every Oregon employer also pays federal Social Security (6.2% up to $184,500), Medicare (1.45%) and FUTA (0.6% on the first $7,000).
What will payroll taxes cost me in Oregon?
Enter your headcount and average pay to see the employer's share of Oregon and federal payroll taxes for 2026. Change the SUTA rate to the one on your rate notice.
Oregon employer payroll tax estimator · 2026
Runs in your browser · nothing is sent anywhere| Tax | Per year |
|---|---|
Oregon unemployment (SUTA) 2.4% × first $56,700 per employee | $6,000 |
Federal unemployment (FUTA) 0.6% × first $7,000 after the full state credit | $210 |
Social Security (employer half) 6.2% × first $184,500 | $15,500 |
Medicare (employer half) 1.45% of all wages | $3,625 |
Paid Leave Oregon No employer share at 5 employees (Under 25: no employer share) | $0 |
| Total employer taxes | $25,335 |
| Per employee | $5,067 |
Assumes every employee earns the average and works in Oregon all year. Not included: Oregon Workers' Benefit Fund assessment (charged per hour worked). Local payroll taxes (below) depend on where the work is done and are not included. Workers' comp premiums and benefits are extra — the payroll cost calculator adds them.
Oregon unemployment insurance tax (SUTA) in 2026
- 2026 taxable wage base
- $56,700 per employee (4th highest of 51)
- New-employer rate
- 2.4%
- How the new-employer rate works
- Schedule 3: new employers 2.4%.
- Most a new employer pays per employee
- $1,360.80 (2.4% × $56,700)
- Experience-rated range (2026, as published)
- 0.9% to 5.4%
- 2025 average employer rate
- 1.96% of taxable wages (U.S. DOL)
- Employee contribution
- None — employer-paid only
Register with Oregon Employment Department when you first pay wages in Oregon; you get an account number for quarterly wage reports and tax payments.
Paid leave, disability and other Oregon payroll programs
- Paid Leave Oregon · wages up to $184,50025+ employees: employer pays 40% of 1%; Under 25: no employer share2026 total contribution 1% up to $184,500: employees 60% (0.6%), employers with 25+ employees 40% (0.4%).
- Oregon Workers' Benefit Fund assessment1.8¢ per hour worked, split half and half2026 rate is 1.8 cents per hour worked (2.0¢ in 2025). Employers pay half and deduct half from workers' wages.
- Statewide Transit Tax · employee-paid, withheld by you0.1% of wages
Local payroll taxes in Oregon
Federal payroll taxes every Oregon employer pays
- Social Security: 6.2% from you and 6.2% withheld from the employee, on wages up to $184,500 in 2026.
- Medicare: 1.45% each on all wages; withhold an extra 0.9% (employee only) on wages over $200,000.
- FUTA: 6.0% of the first $7,000 per employee, less up to 5.4% credit for Oregon unemployment tax paid on time = 0.6%, or $42 per employee.
- Federal income tax withholding from each paycheck based on the employee's Form W-4.
Next for Oregon employers: Oregon paycheck calculator (employee withholding) · Oregon new hire reporting · Oregon payday & final paycheck rules · Oregon workers' comp · full payroll cost calculator
Oregon payroll tax FAQ
What is the Oregon SUTA rate for new employers in 2026?
2.4%. Schedule 3: new employers 2.4%.
What is the Oregon SUTA wage base for 2026?
$56,700 per employee. Once an employee's 2026 wages pass that amount, you stop paying Oregon unemployment tax on them for the rest of the year. That is the 4th highest wage base of the 50 states and DC (the federal FUTA base is $7,000).
Do employees pay unemployment tax in Oregon?
No. In Oregon unemployment tax is paid only by the employer; it can't be deducted from pay. Only Alaska, New Jersey and Pennsylvania collect an employee share.
What other payroll taxes do Oregon employers pay?
Besides unemployment tax: Paid Leave Oregon: 2026 total contribution 1% up to $184,500: employees 60% (0.6%), employers with 25+ employees 40% (0.4%). Oregon Workers' Benefit Fund assessment: 2026 rate is 1.8 cents per hour worked (2.0¢ in 2025). Employers pay half and deduct half from workers' wages. Statewide Transit Tax (employee-paid): 0.1% Some local payroll taxes also apply: TriMet transit payroll tax (Portland metro) and Lane Transit District payroll tax (Eugene/Springfield).
How much FUTA do Oregon employers pay?
0.6% of the first $7,000 of each employee's wages — $42 per employee per year — after the full 5.4% credit for paying Oregon unemployment tax on time. Oregon is not a credit-reduction state for 2026.
How does my Oregon SUTA rate change after the first years?
New employers keep the new-employer rate until they have enough history to be experience-rated (the timing is set by state law). After that, Oregon Employment Department assigns a rate each year based on your layoffs and benefit charges; published 2026 rates run from 0.9% to 5.4%. Use the rate on your annual rate notice. The 2025 average employer rate in Oregon was 1.96% of taxable wages.
Official Sources
Figures checked against these sources on 2026-10-12- Oregon Employment Dept. — current tax rate — UI wage base and rates
- Oregon DOR — 2026 Combined Payroll Tax Report — UI wage base and rates
- Paid Leave Oregon — what employers need to do — Paid Leave Oregon
- TriMet — payroll and self-employment tax information — TriMet transit payroll tax (Portland metro)
- IRS Publication 15 (2026), Employer's Tax Guide
- IRS Topic 759, Form 940 — FUTA
- U.S. DOL ETA — Employer contribution rates, CY 2025
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General information, not tax advice. Rates change every year; confirm yours on the notice from Oregon Employment Department before filing.