Oregon Business Taxes: Rates, CAT & Filing Dates (2026)

How Business Structure Determines Your Oregon Taxes

Your tax obligations in Oregon start with how you file your federal return with the IRS. The Oregon Secretary of State lists five common business structures: sole proprietorship, general partnership, limited liability company (LLC), corporation, and nonprofit. Oregon follows federal entity classification and disregarded entity rules, so you file the same way for Oregon as you do for federal taxes.

An LLC does not have a separate Oregon tax classification. An LLC taxed as a partnership federally files a partnership return in Oregon. An LLC can also elect S corporation tax filing status with the IRS without changing its business registry with the Oregon Secretary of State. Changing an LLC from a sole proprietorship to a partnership with the IRS only requires a free update to the Secretary of State LLC registry to show more than one owner.

Registering a corporation with the Oregon Secretary of State or the Department of Consumer and Business Services Insurance Division does not create a state tax filing requirement on its own. If your corporation is not doing business in Oregon and has no income from an Oregon source, you do not need to file an Oregon tax return.

• sos.oregon.gov: Oregon Secretary of State : Business Taxes & Filing Status Changes : Business Information
• oregon.gov: Oregon Department of Revenue : Corporation Excise and Income Tax : Businesses : State of O

Oregon Corporate Activity Tax (CAT) Rules and Calculation

Established under ORS Chapter 317A for tax years beginning on or after January 1, 2020, the Corporate Activity Tax (CAT) applies to C corporations, S corporations, partnerships, LLCs, and sole proprietorships. It is imposed for the privilege of doing business in Oregon and sits on top of the state's income and excise taxes.

The CAT is measured on your Oregon commercial activity, which is the total amount realized from transactions and activity in the regular course of business in Oregon, using your federal income tax accounting method. You cannot file a CAT return through Revenue Online. CAT returns must be filed by mail or through an approved e-file vendor.

Once your Oregon commercial activity reaches $750,000 in a year, you must register for the CAT within 30 days through Revenue Online. Failing to register on time carries a penalty of $100 per month, up to $1,000 per calendar year. Once registered, you do not need to re-register in future years.

To compute your taxable Oregon commercial activity, you first remove statutory exclusions on Schedule OR-EXC-CAT and then subtract 35 percent of the greater of your cost inputs or your labor costs sourced to Oregon.

• Cost inputs are cost of goods sold (COGS) as calculated in arriving at federal taxable income under the Internal Revenue Code. For farming operations under NAICS codes 111, 112, or 115 that do not report federal COGS, cost inputs mean operating costs excluding labor costs.
• Labor costs include wages, health insurance, retirement, and other fringe benefits paid to employees, but exclude employees' payroll taxes and compensation over $500,000 paid to any single employee.
• Partners and LLC members receiving guaranteed payments or distributive income, statutory employees under IRC Section 3121(d)(3), and independent contractors under ORS 670.600 do not count as employees for the labor subtraction.
• Exclusions from commercial activity include retail and wholesale grocery sales, motor vehicle fuel sales, items or services delivered outside of Oregon, sales to Oregon wholesalers documented with an Out-of-State Resale Certificate, distributive income from a pass-through entity, and receipts between members of the same unitary group.
• Entities with more than 50 percent direct or indirect common ownership engaged in a unitary business enterprise must register, file, and pay as a single unitary group taxpayer using Form OR-AF-CAT.

• oregon.gov: Oregon Department of Revenue : Corporate Activity Tax (CAT) : Businesses : State of Oregon
• oregon.gov: Oregon Department of Revenue : Corporation Excise and Income Tax : Businesses : State of O

Worked Example: Calculating Your Oregon CAT Liability

Under ORS 317A.125, you only owe a CAT payment if your taxable Oregon commercial activity remains above $1,000,000 after subtracting 35 percent of your eligible cost inputs or labor costs. Here is a step-by-step worked example written by our team using the official Oregon Department of Revenue formula for a calendar-year Oregon company with $2,000,000 in total gross receipts.

• Step 1: Determine Oregon commercial activity after exclusions. Out of $2,000,000 in total receipts, $200,000 came from goods delivered outside of Oregon. Removing that $200,000 exclusion leaves $1,800,000 in Oregon commercial activity, which requires filing a CAT return.
• Step 2: Compare eligible cost inputs (COGS) and qualifying labor costs. The business has $500,000 in federal COGS attributable to Oregon sales. It also paid $700,000 in total employee compensation and benefits in Oregon, including $600,000 to its CEO and $100,000 to a manager. Removing the $100,000 above the $500,000 single-employee cap leaves $600,000 in qualifying labor costs.
• Step 3: Calculate the 35 percent subtraction. Because qualifying labor ($600,000) exceeds cost inputs ($500,000), the business uses labor costs. By our calculation from the ORS 317A.119 rule, 35 percent of $600,000 equals a $210,000 subtraction.
• Step 4: Compute taxable Oregon commercial activity. Subtracting $210,000 from $1,800,000 leaves $1,590,000 in taxable Oregon commercial activity.
• Step 5: Apply the CAT rate formula. Multiplying the $590,000 over the $1,000,000 threshold by 0.57 percent (0.0057) equals $3,363. Adding the $250 base amount gives a total CAT liability of $3,613 for the year. Because this is under the $5,000 quarterly estimated threshold, the business pays on its annual due date without quarterly installments.

• oregon.gov: Oregon Department of Revenue : Corporate Activity Tax (CAT) : Businesses : State of Oregon
• oregon.gov: Oregon Department of Revenue : Corporation Excise and Income Tax : Businesses : State of O

Oregon Corporation Excise and Income Taxes (C Corps and S Corps)

Corporations doing business in Oregon file a Corporation Excise Tax return (Form OR-20 for C corporations, Form OR-20-S for S corporations, or Form OR-20-INS for insurance companies) and are subject to the corporation minimum tax. Corporations not doing business in Oregon that have Oregon-source income file a Corporation Income Tax return (Form OR-20-INC) and are not subject to the minimum tax.

For tax years beginning January 1, 2013 and later, the calculated tax rate for C corporations and S corporations is 6.6 percent on Oregon taxable income of $1 million or less, and $66,000 plus 7.6 percent of the amount over $1 million. C corporation excise tax filers pay the greater of the calculated tax or the corporation minimum tax.

For S corporations, net income or loss generally passes through to shareholders on federal Schedule K-1. However, an S corporation doing business in Oregon must pay a $150 minimum excise tax on Form OR-20-S, which does not flow through to shareholders. S corporations are also taxed at the corporate rate on built-in gains and excess net passive income if taxed on the federal S corporation return.

Oregon is tied to the federal definition of taxable income as of December 31, 2022, though it remains disconnected from federal subsidies for prescription drug plans under IRC Section 139A and certain 2009 to 2010 depreciation deferral adjustments under IRC Sections 168(k) and 179. Oregon allows corporate net operating losses (NOLs) to be carried forward up to 15 years, with no carryback allowed unless the corporation is engaged in crop production, animal production, or aquaculture.

• oregon.gov: Oregon Department of Revenue : Corporation Excise and Income Tax : Businesses : State of O
• oregon.gov: Oregon Department of Revenue : Corporate Activity Tax (CAT) : Businesses : State of Oregon

Pass-Through, Self-Employed, and Employer Payroll Taxes

Owners of sole proprietorships, partnerships, and S corporations report their share of business income on their personal tax returns. Resident S corporation shareholders are taxed on their pro rata share of income, losses, and deductions from federal Schedule K-1, modified by Oregon additions and subtractions. Nonresident shareholders are taxed on their share of modified income multiplied by the S corporation's apportionment percentage from Schedule OR-AP. Pass-through entities with nonresident owners can check Publication OR-OC and Form OR-19 for composite return and withholding rules, and Oregon also administers a Pass-Through Entity Elective (PTE-E) Tax program.

Self-employed business owners must pay federal self-employment tax (Social Security and Medicare) and file Schedule SE (Form 1040 or 1040-SR) if net earnings from self-employment are $400 or more. Within Oregon, self-employed individuals operating inside local transit districts also face Transit Self-employment Taxes administered by the Oregon Department of Revenue.

Employers must handle federal Social Security and Medicare taxes, federal income tax withholding, and Federal Unemployment (FUTA) tax on forms such as Form 941 and Form W-2. In Oregon, state employer payroll and transit programs include W-2 and 1099 reporting via iWire and these accounts:

• Oregon Withholding and Payroll Tax
• Oregon Unemployment Insurance Tax
• Workers Benefit Fund Assessment
• Statewide Transit Tax
• TriMet Transit District Payroll Tax and Lane County Transit District Payroll Tax
• Agricultural Employer Overtime Tax Credit

• IRS: Business taxes
• oregon.gov: Oregon Department of Revenue : Corporation Excise and Income Tax : Businesses : State of O

Key Oregon Business Tax Deadlines and Extensions

Oregon corporation returns are due on the 15th day of the month following the due date of your federal corporation return. Weekend or holiday deadlines move to the next business day. Oregon does not have a separate state extension form for corporations. You use federal Form 7004 and include it when you file your Oregon return (write "for Oregon only" across the top if you only need an Oregon extension). Your extended Oregon corporation due date is the 15th day of the month following your federal extended due date.

For the Corporate Activity Tax, starting with tax years beginning on or after January 1, 2024, a seven-month filing extension is available without needing to show good cause. If you have a federal income tax extension, you automatically receive the seven-month CAT extension and only need to keep a copy of the federal extension in your records. Otherwise, request a CAT extension by filing Form OR-EXT-CAT on or before the original CAT due date.

An extension to file is never an extension to pay. For the CAT, failing to pay by the original due date triggers a 5 percent late payment penalty plus interest, and filing more than three months after the original or extended due date adds a 20 percent late filing penalty. For tax years beginning on or after January 1, 2022, CAT taxpayers required to make quarterly estimated payments must pay at least 90 percent of each quarterly balance to avoid the 5 percent quarterly underpayment penalty.

• oregon.gov: Oregon Department of Revenue : Corporate Activity Tax (CAT) : Businesses : State of Oregon
• oregon.gov: Oregon Department of Revenue : Corporation Excise and Income Tax : Businesses : State of O

Checklist: Every Agency and Account for a New Oregon Business

The State of Oregon does not issue a general statewide business license. Your registration with the Oregon Secretary of State Corporation Division serves that purpose, and you add federal, tax, local, and occupational registrations based on your activity. Our team compiled this compliance checklist from the Oregon Secretary of State and Department of Revenue startup guides.

• 1. Oregon Secretary of State (Corporation Division): Check name availability on the Business Registry Database and register your Assumed Business Name (renews every two years) or your LLC, corporation, or nonprofit (files an annual report each year on its registration anniversary).
• 2. Financial Crimes Enforcement Network (FinCEN): Most new active corporations and LLCs must electronically file a Beneficial Ownership Information (BOI) report at fincen.gov/boi within 90 days of formation.
• 3. Internal Revenue Service (IRS): Apply online for a federal Employer Identification Number (EIN) to open a business bank account and file federal taxes.
• 4. Oregon Department of Revenue (Revenue Online): Set up your Revenue Online account to manage corporate estimated payments, register for the Corporate Activity Tax within 30 days of hitting $750,000 in Oregon commercial activity, and register for employer payroll and transit tax programs before hiring employees.
• 5. State Occupational Boards and Local Governments: Search the Oregon Business License Directory (licenseinfo.oregon.gov) for state board requirements, such as the Construction Contractors Board or Landscape Contractors Board, and check with your city and county planning offices for local business licenses and zoning.
• 6. County Assessor and Oregon State Treasury: Report business personal property to your county assessor's office, and file the mandatory annual unclaimed property report with the Oregon State Treasury (required by law for all Oregon businesses, regardless of size).

• sos.oregon.gov: Oregon Secretary of State : Starting a Business : Business Information Center : State of O
• oregon.gov: Oregon Department of Revenue : Corporation Excise and Income Tax : Businesses : State of O

Oregon Business Tax Guides, Services, and Flat-Price Filing

If you want year-round support, you can work with an Oregon Small Business Accountant or an Accountant in Oregon, and use Online Bookkeeping in Oregon for monthly bank and card reconciliation and financial statements. To submit your federal, state, and local returns for an LLC, partnership, S corporation, or C corporation, explore Business Tax Preparation in Oregon or learn how to File Business Taxes in Oregon. Sole proprietors can review the Oregon Self-Employed Tax Guide for Schedule C, Schedule SE, and Oregon transit self-employment tax rules, while businesses in major cities can check local requirements in Portland, Eugene, and Salem.

Aldro is the cheapest way to get your business taxes done: $399 flat, with bookkeeping at $20 a month.

Our team prepares and files for a single flat price that covers everything tax for the year (every federal and state or provincial business return: Schedule C, 1065, 1120-S, 1120 and state returns, T2 and T1 with T2125 in Canada). We include multi-state returns at the same price, the owner's personal return when the business income needs it, city and local business returns and state franchise tax reports included, and 1099-NEC slips included. We work out quarterly estimates, and extensions and quarterly estimate reminders are included. If you have unfiled prior years, each unfiled prior year is billed at the same flat price. Our monthly bookkeeping covers unlimited bank and card accounts, monthly reconciliation and statements, but not payroll processing or sales-tax filing. If you are switching from Bench or another service, we start within a week of getting the documents.

• oregon.gov: Oregon Department of Revenue : Corporation Excise and Income Tax : Businesses : State of O
• sos.oregon.gov: Oregon Secretary of State : Starting a Business : Business Information Center : State of O