Most people in the Portland area never pay either tax. But for single filers with Oregon taxable income above about $125,000, and couples above about $200,000, two local income taxes apply on top of Oregon's own rates, which already reach 9.9%. For 2026, one of them changed its thresholds for the first time.
The two taxes at a glance
|
Metro Supportive Housing Services (SHS) |
Multnomah County Preschool for All (PFA) |
| Who levies it |
Metro regional government |
Multnomah County |
| Rate |
1% |
1.5%, plus another 1.5% at higher incomes |
| 2026 threshold, single |
$128,000 |
$125,000 (3% above $250,000) |
| 2026 threshold, joint |
$205,000 |
$200,000 (3% above $400,000) |
| Residents taxed on |
All income |
All income |
| Nonresidents taxed on |
Income from the Metro district |
Income from Multnomah County |
Both are administered by the City of Portland's Revenue Division and filed together.
What changed in 2026
SHS thresholds now rise with inflation. From 2021 to 2025 the SHS tax started at $125,000 for single filers and $200,000 for joint filers. For 2026 those became $128,000 and $205,000, and they will be adjusted each year from now on.
PFA thresholds don't. Preschool for All still starts at $125,000 and $200,000, and they are not indexed. Each year, inflation pushes more households over the line without any real raise.
The PFA rate increase was postponed. The county had planned to raise the rates in 2026. For tax year 2026 they stay at 1.5% and 3%; the increase is now scheduled for 2027.
Only income above the threshold is taxed
Neither tax is a cliff. Crossing the threshold by $1,000 means tax on $1,000, not on your whole income. Here's what a single filer living in Multnomah County (which is inside the Metro district) pays in 2026:
| Oregon taxable income |
SHS |
PFA |
Total |
| $130,000 |
$20 |
$75 |
$95 |
| $150,000 |
$220 |
$375 |
$595 |
| $200,000 |
$720 |
$1,125 |
$1,845 |
| $250,000 |
$1,220 |
$1,875 |
$3,095 |
| $300,000 |
$1,720 |
$3,375 |
$5,095 |
| $500,000 |
$3,720 |
$9,375 |
$13,095 |
And for joint filers in Multnomah County:
| Oregon taxable income |
SHS |
PFA |
Total |
| $220,000 |
$150 |
$300 |
$450 |
| $300,000 |
$950 |
$1,500 |
$2,450 |
| $450,000 |
$2,450 |
$4,500 |
$6,950 |
The PFA tax grows faster at the top because of its second tier: above $250,000 (single) every extra dollar costs 3 cents in PFA plus 1 cent in SHS.
Where you live matters
Multnomah County (Portland, Gresham, Troutdale and others): you pay both taxes on all your income. City of Portland residents also owe the separate $35 Arts Tax.
The Metro part of Washington or Clackamas County (most of Beaverton, Hillsboro, Tigard, Lake Oswego and similar suburbs): you pay SHS on all your income, and PFA only on income you earn working in Multnomah County. A couple in Beaverton with $260,000 of income who both work in Washington County pay $550 in SHS and no PFA.
Outside the Metro district, including Washington State: you pay each tax only on income from work done inside its area, if your total income is over the threshold.
Vancouver commuters
Living in Washington means no state income tax at home, but working in Portland means Oregon nonresident income tax on your Oregon wages, and potentially both local taxes.
Take a single Vancouver resident with $180,000 of income who works in a downtown Portland office three days a week and from home in Washington two days. About 60% of their income comes from work in Multnomah County, which is inside Metro. Their SHS and PFA taxes are roughly 60% of what a resident would pay: about $312 + $495 = $807. The exact nonresident calculation on the official forms can differ slightly.
Withholding and estimated payments
Employers in the area must offer to withhold both taxes and must withhold automatically once an employee's pay passes $200,000 in a year. Below that level, many people owe the tax without any withholding, which can mean a surprise bill.
From 2026, you generally need to make quarterly estimated payments if you expect to owe $5,000 or more across the taxes and your withholding won't cover it. You can opt in to employer withholding to avoid this.
Enter your Oregon taxable income, filing status and where you live and work in the Portland Metro tax calculator. It applies the 2026 SHS and PFA thresholds and handles nonresident income.