Oregon Self-Employment Tax: What You Need to Know in 2024
TLDR
The self-employment tax rate in Oregon is 15.3%, comprising a 12.4% Social Security tax and a 2.9% Medicare tax on net earnings. Individuals must pay this tax if they have $400 or more in net earnings from self-employment.
Self-employed individuals can claim deductions, including half of the self-employment tax paid and other business-related expenses, to reduce their tax burden.
Tax Rate and Minimum Income
The self-employment tax rate in Oregon is 15.3%, which is the sum of a 12.4% Social Security tax and a 2.9% Medicare tax on net earnings. Individuals must pay this tax if they have $400 or more in net earnings from self-employment.
Reporting and Filing
Self-employed individuals in Oregon must file an annual tax return and pay taxes on their net profit from their business, which includes Social Security and Medicare taxes. The transit self-employment tax is also applicable to individuals with self-employment earnings from business or services within transit districts.
You need to file estimated tax payments in Oregon if you expect to owe tax of $1,000 or more after all credits and withholding.
Estimated payment key dates:
- April 15th
- June 15th
- September 15th
- December 15th
Tax Deductions
Self-employed individuals in Oregon can take advantage of certain deductions to lower their tax burden. For example, they may be able to deduct half of the self-employment tax paid and claim other business-related expenses. Additionally, they are allowed a deduction equal to the federal deduction for self-employment taxes.
