No Tax on Tips Calculator for Oregon (2026)

Calculate how much Oregon workers save now that tips are exempt from federal income tax under the OBBBA.

Minimum Wage$15.95/hr
Tipped Min. Wage$15.95/hr
State Income Tax9.9%

Your Information

Your base pay per hour
Your average tip earnings per hour worked

Your Annual Tax Savings in Oregon

$5,370
per year in federal income tax on tips
Annual Tip Income
$42,000
Federal Tax Saved on Tips
$5,370
Your Marginal Federal Rate
22.0%
FICA Still Owed on Tips
$3,213
Annual Base Pay
$27,913
Total Annual Income
$69,913

Tips Tax Exemption 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)

✅ No — Oregon does not tax tips.Oregon conforms to the federal OBBBA "No Tax on Tips" deduction, so tips are also exempt from Oregon state income tax (rate: 9.9%).

Oregon has no state income tax, so combined with the federal tip tax exemption, 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 exemption applies to workers earning less than $150,000/year (single) or $300,000 (married filing jointly)

Federal Calculators

Compare with the federal-level tools: Tip Tax Savings (Federal) | Overtime Tax Savings (Federal)

Calculate Tips Tax Savings for Other States

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