Oregon Temporarily Increases Statewide Transit Tax

Oregon’s statewide transit tax rate was temporarily increased for two years starting in 2026 in a bill signed Nov. 7 by Gov. Tina Kotek (D).

The bill (H.B. 3991) increases the tax rate to 0.2%, from 0.1%, for 2026 and 2027. The bill then decreases the tax rate back to 0.1% starting Jan. 1, 2028.

The tax is assessed on Oregon residents, regardless of where they work, and on nonresidents working in Oregon. Residents working outside Oregon for an employer without a presence in Oregon must self-report and pay the tax or have their employer voluntarily withhold the ...