Oregon · 401(k) Contribution
401(k) Contribution in Oregon (2026)
Pre-tax 401(k) contributions reduce 2026 taxable wages up to the $24,500 employee deferral limit, with catch-up rules for eligible older workers. Oregon has a progressive income tax with a top rate of 9.9%, so a Oregon filer's combined marginal rate on the next dollar at $67,058 of income is about 30.75% (22% federal + 8.75% OR).
2026 savings example for Oregon
Planning estimate for a single filer earning $67,058 (Oregon median household income in LevyIO's state dataset) who removes $5,000 from taxable income. Federal tax uses the 2026 IRS brackets after the $16,100 standard deduction; OR tax uses the state brackets in LevyIO's dataset and assumes the state follows the federal treatment.
Estimated total savings
$1,094
Federal savings
$656
$5,923 → $5,267 · 22% bracket
OR state savings
$438
$5,294 → $4,856 · 8.75% marginal
Combined marginal rate
30.75%
≈ $308 saved per $1,000 deducted
Statutory maximum for this item in LevyIO's dataset: $24,500.
Federal × Oregon marginal rates (2026, single)
Gross-income ranges include the federal standard deduction. The OR column is the state marginal rate at the midpoint of each range. The last column is the tax saved per $1,000 deducted at that combined rate.
| Federal bracket | Gross income (single) | OR marginal | Combined | Per $1,000 |
|---|---|---|---|---|
| 10% | $16,100 - $28,500 | 8.75% | 18.75% | $188 |
| 12% | $28,500 - $66,500 | 8.75% | 20.75% | $208 |
| 22% | $66,500 - $121,800 | 8.75% | 30.75% | $308 |
| 24% | $121,800 - $217,875 | 9.9% | 33.9% | $339 |
| 32% | $217,875 - $272,325 | 9.9% | 41.9% | $419 |
| 35% | $272,325 - $656,700 | 9.9% | 44.9% | $449 |
| 37% | Over $656,700 | 9.9% | 46.9% | $469 |
Eligibility & forms
Employees with employer-sponsored 401(k) plans
- $24,500 employee elective deferral limit for 2026
- $32,500 total if age 50+ with regular catch-up
- $35,750 total if age 60-63 and the plan allows the higher catch-up
- Pre-tax contributions reduce taxable wages; Roth 401(k) contributions do not
Federal forms: W-2
Oregon filing notes
Do not use old Oregon 2025 bracket and deduction values for 2026 planning. Oregon has no sales tax, but the 8.75% bracket reaches many middle-income filers. Include the limited federal tax subtraction when estimating Oregon taxable income, and check Portland/Multnomah/Metro local taxes separately.
Common mistakes: Not maximizing employer match; Over-contributing across multiple plans; Treating Roth 401(k) contributions as a current-year deduction; Ignoring payroll year-to-date deferrals after changing jobs.
Frequently asked questions
How much can the 401(k) Contribution save a Oregon taxpayer in 2026?
In LevyIO's example, a single filer with $67,058 of income (the Oregon median household income in our state dataset) who removes $5,000 from taxable income saves about $656 in 2026 federal tax (22% marginal bracket) plus about $438 in Oregon tax (8.75% state marginal rate), roughly $1,094 combined. It is a planning estimate computed from the 2026 IRS brackets and LevyIO's OR bracket data, not a survey figure.
What is the Oregon income tax rate for 2026?
Oregon has a progressive income tax with a top rate of 9.9%. The OR standard deduction in LevyIO's dataset is $2,910 single / $5,820 married. No sales tax. High top rate (9.9%). 2026 indexed standard deduction $2,910 single / $5,820 married. Federal tax subtraction is limited and phases out at higher income. Estate tax starts at $1M. Kicker refund law.
Who qualifies for the 401(k) Contribution in Oregon?
Employees with employer-sponsored 401(k) plans. The federal rules are the same in every state; the requirements are: $24,500 employee elective deferral limit for 2026; $32,500 total if age 50+ with regular catch-up; $35,750 total if age 60-63 and the plan allows the higher catch-up; Pre-tax contributions reduce taxable wages; Roth 401(k) contributions do not. Oregon filers should confirm on the OR return whether the state follows the federal treatment.
Which forms do I file to claim the 401(k) Contribution?
Federal: W-2. Oregon: check the Oregon Department of Revenue instructions for the matching state schedule. Common mistakes: Not maximizing employer match; Over-contributing across multiple plans; Treating Roth 401(k) contributions as a current-year deduction; Ignoring payroll year-to-date deferrals after changing jobs.
401(k) Contribution in other states
Sources
Reviewed 2026-09-17. Estimates are educational planning figures computed from the IRS 2026 inflation adjustments and LevyIO's state bracket dataset; they are not tax advice.