Oregon Transit Tax

Oregon transit tax is automatically deducted from all eligible employees.

Some areas you should consider.

  • What is the employee eligibility criteria

  • How to exclude individual employees

  • How to cost the tax

  • What wage basis rules it follows

For further info, see the Oregon Statewide Transit Tax authority website.

Employee eligibility criteria

Oregon residents and nonresidents who work in Oregon are subject to the tax. There is no wage limit.

Exclude individual employees

To exclude the wage accumulation and tax for an individual employee:

  1. Use the Calculation Cards task to open the person's Tax Withholding card for editing.

  2. Select the Oregon state regional node.

  3. In Withholding Exemption, mark the person as exempt from state transit tax.

Cost the tax

Cost the following predefined elements using the Tax Calculated input value.

  • State Transit Tax

  • State Transit Tax Not Taken

For further info, see Payroll Costing of Elements for the US in the Help Center.

Wage basis rules

Oregon State Transit Tax rules follow the Oregon State Income Tax wage basis rules.

Employee contributions are accumulated using the State Transit Tax balances.