Oregon doesn't tax Social Security benefits, but most other retirement income is taxed at your top income tax rate.
However, you can deduct as much as $6,250 of federal income taxes paid on your Oregon return, and there is a retirement-income credit for seniors with certain income restrictions.
Do I qualify for the Oregon Retirement Income Credit?You qualify for this credit if all of the following are true:
- You were age 62 or older on December 31, 2015, and receiving retirement income, and
- Your household income is less than $22,500 ($45,000 if Married Filing Jointly), and
- Your Social Security benefits and/or tier 1 Railroad Retirement Board benefits are less than $7,500 ($15,000 if Married Filing Jointly), and
- Your household income plus your Social Security and/or tier 1 Railroad Retirement Board benefits is less than $22,500 ($45,000 if Married Filing Jointly).
