How this calculator works
Both taxes use Oregon taxable income and apply only to the part above a threshold. Income below the threshold is never taxed, so a single filer earning $129,000 pays SHS on just $1,000.
Metro SHS is 1% of income above $128,000 for single filers and $205,000 for joint filers in 2026. This is the first year the thresholds rise with inflation; they were $125,000 and $200,000 from 2021 to 2025.
Preschool for All is 1.5% of income above $125,000 single or $200,000 joint, plus another 1.5% on income above $250,000 or $400,000, for 3% at the top. These thresholds are fixed. A rate increase planned for 2026 was postponed to 2027.
Residents of the Metro district pay SHS on all their income, and Multnomah County residents pay PFA on all their income. People who live elsewhere, including Washington State commuters, owe each tax only on income earned there. The calculator scales the tax by the share you enter, which approximates the official nonresident method.
City of Portland residents also owe the $35 Arts Tax if they are 18 or older and have at least $1,000 of income, unless their household is below the federal poverty line.
Worked example
Single, lives in Portland, $180,000 of Oregon taxable income
- Metro SHS: ($180,000 − $128,000) × 1% = $520.
- Preschool for All: ($180,000 − $125,000) × 1.5% = $825.
- Arts Tax: $35.
- Total local income tax: $1,380. At $300,000 the same person would pay $1,720 SHS and $3,375 PFA.
Questions people ask
Do I pay the Preschool for All tax if I live in Beaverton or Lake Oswego?
Only on income you earn working in Multnomah County. Preschool for All is a Multnomah County tax. Most of urban Washington and Clackamas counties is inside the Metro district, though, so residents there usually owe the SHS tax on all their income.
I live in Vancouver, Washington, and work in Portland. Do these apply?
Yes, if your income is above the thresholds: you owe SHS on income from work in the Metro district and PFA on income from work in Multnomah County. You also owe Oregon nonresident income tax on Oregon wages.
Does my employer withhold these taxes?
Employers must offer withholding, and withhold automatically once an employee earns over $200,000 in the year. Below that, you may need to opt in or make estimated payments if you expect to owe $5,000 or more.
Are these taxes going away?
Not for now. Both taxes are in force for 2026, and Preschool for All is scheduled to raise its rates in 2027. Their future has been debated locally, so check the City of Portland Revenue Division for changes.
Sources
Last reviewed October 2, 2026