Oregon LLC State Tax Obligations — Annual Compliance
Beyond the Annual Report filed with the Secretary of State, your Oregon LLC has state tax obligations administered by the Oregon Department of Revenue. This page covers the ongoing tax compliance requirements you'll face each year. For the complete tax breakdown, see our Oregon tax guide. For formation, see our LLC formation guide. For all compliance requirements, see our after-formation overview.
Annual Tax Obligations Summary
| Tax/Filing | Who Owes It | Rate | Due Date | Filed With |
|---|---|---|---|---|
| Oregon personal income tax | All LLC members | 4.75%-9.9% | April 15 | Oregon DOR |
| Quarterly estimated payments | Members expecting $1,000+ tax | Varies | Quarterly | Oregon DOR |
| Corporate Activity Tax (CAT) | LLCs with OR revenue >$1M | $250 + 0.57% | April 15 | Oregon DOR |
| Corporate excise tax | Only C-corp elected LLCs | 6.6%-7.6% | April 15 | Oregon DOR |
| Oregon employer withholding | LLCs with employees | Varies | Varies | Oregon DOR |
| Statewide transit tax | LLCs with employees in OR | 0.1% of wages | Quarterly | Oregon DOR |
Oregon Personal Income Tax (Pass-Through LLCs)
The primary state tax obligation for Oregon LLC members is Oregon personal income tax on their share of LLC profits:
- Single-member LLCs: All profit on your Oregon Form OR-40
- Multi-member LLCs: Each member's K-1 share on their Oregon Form OR-40 (or OR-40-N for non-residents)
- Rates: 4.75% to 9.9% depending on total taxable income
- Due: April 15 (extension available to October 15)
- File at: revenueonline.dor.oregon.gov
Oregon income tax applies whether or not you withdraw money from the LLC. Your share of LLC profits is taxable when earned, not when distributed.
No Sales Tax — But Don't Forget These
Ready to get started?
Get StartedOregon has no sales tax, which eliminates one major compliance burden. However, Oregon LLC owners sometimes overlook:
- Multnomah County Business Income Tax (2.0%) — If your LLC operates in Multnomah County (Portland metro)
- Portland Metro Supportive Housing Tax (1%) — On income over $125K/$200K for individuals in the Metro district
- City business license taxes — Portland, Eugene, Salem, and most Oregon cities have their own annual business license fees/taxes
- Transient lodging tax — If your LLC operates short-term rentals
- Oregon marijuana tax (17%) — If your LLC is in the cannabis retail industry
Department of Revenue Registration
When you must register with Oregon DOR:
- You hire employees (withholding obligations)
- You elect corporate taxation (excise tax)
- Your commercial activity exceeds $750,000 (CAT registration required)
- You operate in a city with local business taxes requiring state coordination
Registration: oregonbusinessreport.com or contact Oregon DOR directly
Employer-Specific Obligations
If your Oregon LLC has employees:
| Obligation | Rate/Amount | Frequency | Agency |
|---|---|---|---|
| Oregon income tax withholding | Based on employee W-4 elections | Each payroll | Oregon DOR |
| Statewide transit tax | 0.1% of gross wages | Quarterly | Oregon DOR |
| Unemployment insurance | 0.7%-5.4% (employer), 0.6% (employee) on first $50,900 | Quarterly | Oregon Employment Dept. |
| Workers' compensation | Varies by industry classification | Annual/quarterly | Oregon DCBS |
| Paid Leave Oregon | 1% of wages (employer + employee split) | Quarterly | Oregon Employment Dept. |
Key Filing Deadlines
Ready to get started?
Get Started| Filing | Deadline | Extension |
|---|---|---|
| Oregon Form OR-40 (personal) | April 15 | October 15 |
| Estimated payments | Apr 15, Jun 15, Sep 15, Jan 15 | None |
| CAT annual return | April 15 | Available (request before due date) |
| Annual Report (SOS, not DOR) | Formation anniversary | 45-day grace period |
| W-2s to employees | January 31 | None |
| 1099s to contractors | January 31 | None |
FAQ
Does my Oregon LLC file a state tax return?
The LLC itself does not file a separate Oregon income tax return (for pass-through entities). Members file individually. However, if you elect C-corp taxation, the LLC files Oregon Form 20 (corporate excise tax). If you make the PTE-E election, the LLC files an entity-level return.
What's the penalty for late filing?
Oregon charges 5% of unpaid tax per month (up to 25%) plus interest on late-filed returns. Estimated payment underpayment interest also applies quarterly. Filing on time but paying late incurs lower penalties than not filing at all.
I live in another state but have an Oregon LLC. What do I owe Oregon?
You owe Oregon income tax on income sourced from Oregon business activities. File Oregon Form OR-40-N (Non-Resident). You'll likely receive a credit on your home state return for Oregon taxes paid.
Are Annual Report fees and income taxes paid to the same agency?
No. Annual Report ($100) is paid to the Secretary of State. Income taxes are paid to the Oregon Department of Revenue. They are completely separate agencies with separate filings.