$LevyIO

Home Energy Tax Credit in Oregon 2026

Calculate your home energy tax credit 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 +
$3,200
Est. Total Savings
$3,200
Max Deduction
Tax Credit
Deduction Type
30.8%
Combined Tax Rate

Home Energy Tax Credit Savings Calculator for Oregon

$
$

Federal Savings

$3,200

22% bracket

Oregon State

$0

8.75% rate

Total Savings

$3,200

30.8% combined

Tax credits reduce your tax bill dollar-for-dollar, regardless of your tax bracket.

Savings by Tax Bracket in Oregon

10%
$5,000
12%
$5,000
22%
$5,000
24%
$5,000
32%
$5,000
35%
$5,000
37%
$5,000

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

Eligibility Requirements

Homeowners who install energy-efficient improvements

  • 1Must be primary residence
  • 2Qualifying improvements only
  • 3Keep receipts

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

  • !Claiming for rental properties
  • !Missing manufacturer certifications
  • !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 5695

File these forms with your federal tax return to claim the home energy tax credit. Oregon may require additional state-specific forms.

Other Tax Deductions in Oregon

Mortgage Interest Deduction

Housing

~$4,892
est. savings

Property Tax Deduction

Housing

~$3,075
est. savings

Home Office Deduction

Housing

~$1,677
est. savings

Residential Solar Tax Credit

Housing

~$7,500
est. savings

Military Moving Expenses

Housing

~$5,591
est. savings

PMI Premium Deduction

Housing

~$1,538
est. savings

Mortgage Points Deduction

Housing

~$2,795
est. savings

Casualty & Theft Loss Deduction

Housing

~$6,989
est. savings

Home Energy Tax Credit in Neighboring States

Washington

No state income tax

~$1,800
-1,400 vs Oregon

Idaho

5.8% top rate (flat)

~$1,800
-1,400 vs Oregon

Nevada

No state income tax

~$1,800
-1,400 vs Oregon

California

13.3% top rate (progressive)

~$1,800
-1,400 vs Oregon

Tax Calculators for Oregon Cities

PortlandSalemEugeneGreshamHillsboroBendBeavertonMedfordSpringfieldCorvallis

Calculate Your Full Tax Savings in Oregon

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

Income Tax CalculatorOregon Income TaxFull Home Energy Tax Credit Guide

Frequently Asked Questions

How much can I save with the Home Energy Tax Credit in Oregon?

In Oregon, the home energy tax credit can save you an estimated $3,200 per year on a $5,000 deduction. This includes $3,200 in federal tax savings and $0 in Oregon state tax savings at the 8.75% marginal rate. The national average savings is $1,800/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 Home Energy Tax Credit in Oregon?

Homeowners who install energy-efficient improvements. The eligibility requirements are the same whether you live in Oregon or another state, as this is a federal tax credit. 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 Home Energy Tax Credit in Oregon?

To claim the home energy tax credit, you need to file Form 5695 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 Home Energy Tax Credit 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.

Related Calculators

Mortgage Interest Deduction in Oregon

Avg savings: $3,500/year

Property Tax Deduction in Oregon

Avg savings: $2,200/year

Home Office Deduction in Oregon

Avg savings: $1,200/year

Residential Solar Tax Credit in Oregon

Avg savings: $7,500/year

Military Moving Expenses in Oregon

Avg savings: $4,000/year

PMI Premium Deduction in Oregon

Avg savings: $1,100/year