No Tax on Tips Calculator for Oregon (2026)
Calculate how much Oregon workers save now that tips are deductible from federal taxable income (caps and income limits apply) under the OBBBA.
Your Information
Your Annual Tax Savings in Oregon
Tips Tax Deduction in Oregon
Under the One Big Beautiful Bill Act (OBBBA), workers in Oregon who earn tips can deduct 100% of their tip income from federal income tax for tax years 2025 through 2028.
Oregon Minimum Wage for Tipped Workers
The minimum wage in Oregon is $15.95/hour. Oregon does not allow a lower tipped minimum wage — all workers receive the full minimum wage regardless of tip income.
Top Tipped Industries in Oregon
- Restaurant servers
- Bartenders
- Hotel staff
- Brewery taproom workers
Does Oregon Tax Tips? (State Conformity)
Oregon has no state income tax, so combined with the federal tip tax deduction, tipped workers in Oregon pay no income tax at all on their tips. Only FICA taxes (Social Security and Medicare) still apply.
How the No Tax on Tips Law Works
What Qualifies
- Cash tips received directly from customers
- Credit/debit card tips
- Tips from tip pools or tip sharing
- Service charges distributed as tips
What Doesn't Change
- FICA taxes still apply: You still pay 6.2% Social Security + 1.45% Medicare on tip income
- Tips must still be reported: Report all tips to your employer and on your tax return
- Annual cap: Deduction limited to $25,000 per year in tip income
- Income limit: The deduction applies to workers earning less than $150,000/year (single) or $300,000 (married filing jointly)
Overtime Tax Deduction in Oregon (2026)
The same OBBBA Schedule 1-A rules apply nationwide: only the FLSA overtime premium (the half of time-and-a-half) is deductible, up to $12,500 ($25,000 joint), with MAGI phase-outs. Oregon state income tax may still apply to overtime wages even when the federal premium deduction is available.
Use the free Overtime Tax Calculator to estimate federal savings for Oregon workers — including common searches like “oregon overtime tax calculator.”
Federal Calculators
Compare with the federal-level tools: Tip Tax Savings (Federal) | Overtime Tax Calculator (Federal)