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Passive Activity Loss Deduction in Oregon 2026

Calculate your passive activity loss deduction 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 +
$1,538
Est. Total Savings
$25,000
Max Deduction
Both Methods
Deduction Type
30.8%
Combined Tax Rate

Passive Activity Loss Deduction Savings Calculator for Oregon

$
$

Federal Savings

$1,100

22% bracket

Oregon State

$438

8.75% rate

Total Savings

$1,538

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

Taxpayers with passive losses from rental or business activities with limited participation

  • 1Active participation in rental real estate allows up to $25K
  • 2Phase-out begins at $100K AGI, fully phased out at $150K
  • 3Suspended losses deductible when activity is disposed

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

  • !Not tracking suspended passive losses across years
  • !Missing the active participation exception for rentals
  • !Not fully disposing of activity to release suspended losses
  • !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 8582Schedule E

File these forms with your federal tax return to claim the passive activity loss deduction. Oregon may require additional state-specific forms.

Other Tax Deductions in Oregon

Capital Loss Deduction

Investment

~$923
est. savings

Tax-Loss Harvesting

Investment

~$6,989
est. savings

Investment Interest Expense

Investment

~$2,097
est. savings

Qualified Dividend Tax Rate

Investment

~$4,193
est. savings

Opportunity Zone Investment

Investment

~$13,977
est. savings

1031 Like-Kind Exchange

Investment

~$41,932
est. savings

QSBS Exclusion (Section 1202)

Investment

~$139,773
est. savings

Installment Sale

Investment

~$11,182
est. savings

Passive Activity Loss Deduction in Neighboring States

Washington

No state income tax

~$5,000
+3,462 vs Oregon

Idaho

5.8% top rate (flat)

~$6,318
+4,780 vs Oregon

Nevada

No state income tax

~$5,000
+3,462 vs Oregon

California

13.3% top rate (progressive)

~$8,023
+6,485 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 Passive Activity Loss Deduction Guide

Frequently Asked Questions

How much can I save with the Passive Activity Loss Deduction in Oregon?

In Oregon, the passive activity loss deduction can save you an estimated $1,538 per year on a $5,000 deduction. This includes $1,100 in federal tax savings and $438 in Oregon state tax savings at the 8.75% marginal rate. The national average savings is $5,000/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 Passive Activity Loss Deduction in Oregon?

Taxpayers with passive losses from rental or business activities with limited participation. 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 Passive Activity Loss Deduction in Oregon?

To claim the passive activity loss deduction, you need to file Form 8582 and Schedule E 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 Passive Activity Loss Deduction 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

Capital Loss Deduction in Oregon

Avg savings: $660/year

Tax-Loss Harvesting in Oregon

Avg savings: $5,000/year

Investment Interest Expense in Oregon

Avg savings: $1,500/year

Qualified Dividend Tax Rate in Oregon

Avg savings: $3,000/year

Opportunity Zone Investment in Oregon

Avg savings: $10,000/year

1031 Like-Kind Exchange in Oregon

Avg savings: $30,000/year