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Coverdell Education Savings Account in Oregon 2026

Calculate your coverdell education savings account tax savings in Oregon. With Oregon's 9.9% top state tax rate, your combined savings are higher.

Oregon Tax Overview

State Income Tax
9.9%
progressive
Sales Tax
None
avg combined: 0%
Property Tax Rate
0.87%
Median Income
$67,058

No sales tax. High top rate (9.9%). Estate tax with $1M exemption (lowest). Kicker refund law.

Oregon Income Tax Brackets (Single)

4.75%
$0 - $4,300
6.75%
$4,300 - $10,750
8.75%
$10,750 - $125,000
Your bracket
9.9%
$125,000 +
$615
Est. Total Savings
$2,000
Max Deduction
Tax-Free
Deduction Type
30.8%
Combined Tax Rate

Coverdell Education Savings Account Savings Calculator for Oregon

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Federal Savings

$440

22% bracket

Oregon State

$175

8.75% rate

Total Savings

$615

30.8% combined

At a 30.8% combined tax rate in Oregon, every $1,000 in deductions saves you $308 in taxes.

Savings by Tax Bracket in Oregon

10%
$938
12%
$1,038
22%
$1,538
24%
$1,638
32%
$2,038
35%
$2,188
37%
$2,288

Includes 8.75% Oregon state tax on top of federal savings.

Eligibility Requirements

Parents saving for K-12 or college education

  • 1$2,000 annual limit
  • 2Beneficiary under 18
  • 3MAGI limits apply

Oregon residents should verify that this deduction is also recognized on their state tax return for additional savings of up to 9.9%.

Common Mistakes to Avoid

  • !Exceeding contribution limits
  • !Not using for qualified expenses
  • !Forgetting to claim the deduction on your Oregon state return (missing up to 9.9% additional savings)

Oregon Filing Tips

No sales tax saves on all purchases but high income tax offsets this. Low standard deduction ($2,745) means most should itemize. Oregon's $1M estate tax exemption is much lower than federal.

Required Tax Forms

Form 5498-ESA

File these forms with your federal tax return to claim the coverdell education savings account. Oregon may require additional state-specific forms.

Calculate Your Full Tax Savings in Oregon

Use our free tax calculators to optimize your entire tax return for Oregon.

Frequently Asked Questions

How much can I save with the Coverdell Education Savings Account in Oregon?

In Oregon, the coverdell education savings account can save you an estimated $615 per year on a $5,000 deduction. This includes $440 in federal tax savings and $175 in Oregon state tax savings at the 8.75% marginal rate. The national average savings is $300/year.

What is the Oregon state income tax rate?

Oregon has a progressive income tax system with a top rate of 9.9%. No sales tax. High top rate (9.9%). Estate tax with $1M exemption (lowest). Kicker refund law.

Who qualifies for the Coverdell Education Savings Account in Oregon?

Parents saving for K-12 or college education. The eligibility requirements are the same whether you live in Oregon or another state, as this is a federal tax deduction. However, your total savings will vary based on Oregon's 9.9% top state tax rate.

What tax forms do I need to claim the Coverdell Education Savings Account in Oregon?

To claim the coverdell education savings account, you need to file Form 5498-ESA with your federal return. Oregon residents should also check if the state allows this deduction on their state return for additional savings of up to 9.9%. Filing status affects your deduction limits and tax bracket.

Is the Coverdell Education Savings Account better in Oregon than in states without income tax?

Yes, Oregon residents benefit more because the state's 9.9% top income tax rate means the deduction reduces both your federal AND state tax liability. In states with no income tax (like Texas, Florida, or Nevada), this deduction only reduces federal taxes. Your combined rate of 30.8% means more savings per dollar deducted.

What is the standard deduction in Oregon for 2026?

Oregon's standard deduction is $2,745 for single filers and $5,495 for married filing jointly. No sales tax saves on all purchases but high income tax offsets this. Low standard deduction ($2,745) means most should itemize. Oregon's $1M estate tax exemption is much lower than federal.