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posted Jun 4, 2019 6:50:43 PM

Am I required to pay Oregon state income taxes?

I receive retirement income from a Texas Retirement System qualified plan and live in Oregon. Am I required to pay state income taxes in Oregon? 

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Expert Alumni
Jun 4, 2019 6:50:46 PM

Yes. Most retirement income is subject to Oregon tax when received by an Oregon resident. This is true even if you were a non-resident when you earned the income. However, you may subtract some or all of your federal pension income from Oregon income, and there is a retirement-income credit up to $6,250 for seniors with certain income restrictions. The state does not tax Social Security or Railroad Retirement benefits. Depending on your age and income, you may be entitled to a retirement income credit on your Oregon return. If you receive a U.S. government pension, you may be entitled to subtract part or all of that pension on your Oregon Individual income tax return. 

1 Replies
Expert Alumni
Jun 4, 2019 6:50:46 PM

Yes. Most retirement income is subject to Oregon tax when received by an Oregon resident. This is true even if you were a non-resident when you earned the income. However, you may subtract some or all of your federal pension income from Oregon income, and there is a retirement-income credit up to $6,250 for seniors with certain income restrictions. The state does not tax Social Security or Railroad Retirement benefits. Depending on your age and income, you may be entitled to a retirement income credit on your Oregon return. If you receive a U.S. government pension, you may be entitled to subtract part or all of that pension on your Oregon Individual income tax return.