Bonus Tax in Oregon (2026)
A bonus is supplemental pay, and it is usually withheld at a flat federal rate rather than your normal bracket. Employers apply 22% to supplemental wages up to a yearly threshold, and a higher rate on the part above it. FICA comes out on top, and then the Oregon state layer applies.
Paid Leave Oregon and the Statewide Transit Tax still apply to a bonus, and Portland-area local taxes can too.
Worked example: a $5,000 bonus in Oregon
| Federal withholding (22%) | $1,100 |
| FICA (Social Security + Medicare) | $383 |
| Oregon withholding | $400 |
| Total withheld | $1,883 |
| You keep about | $3,117 |
Assumes year-to-date wages under the $184,500 Social Security wage base. Withholding, not final tax — it reconciles on your return.
Bonus tax calculator (2026)
| Federal withholding (flat 22%) | $1,100 |
| FICA (Social Security + Medicare) | $383 |
| Oregon withholding (8%) | $400 |
| You keep about | $3,117 |
Assumes your year-to-date wages are under the $184,500 Social Security wage base. Withholding, not your final tax — it reconciles on your return.
See what your regular paycheck keeps in Oregon: Oregon paycheck calculator.
Frequently asked questions
Why is my bonus taxed so high?
What you see is withholding, not your final tax. Federal rules withhold supplemental pay like a bonus at a flat 22%, which is often more than your normal rate, so the bonus looks heavily taxed. It squares up when you file, where your real rate is applied to your total income.
Does Oregon have a flat bonus withholding rate?
It depends on the state. The breakdown above shows Oregon's supplemental rate if it has one, or notes when the aggregate method applies instead.
Federal: IRS 2026 brackets (Rev. Proc. 2025-32) · FICA: IRS Topic 751 · Wage base: SSA · Oregon: Oregon Department of Revenue · Paid Leave Oregon (employee share): Paid Leave Oregon · Oregon Statewide Transit Tax: Oregon DOR - Statewide Transit Tax. Rates current as of July 16, 2026. Annual-liability estimates, not payroll withholding — see methodology.