When theOR tax form asks if I paid Federal income tax in 2017 does mean when I filed my 2016 taxes or is it what I have deducted from my paycheck?

If you are referring to your 2017 Form OR-40, Line 10, "2017 Federal Tax Liability", it is asking for this year's tax liability from your federal tax return.  

Your 2017 Federal Tax Liability amount can be found on your 2017 Form 1040 (line 63), Form 1040A (line 39), or Form 1040EZ (line 12).

If this doesn't fully answer your question please comment below so I can assist you further.