Supplemental pay
How bonuses are taxed in Oregon
Oregon follows the IRS framework for supplemental pay — bonuses, commissions, back pay, severance and performance awards. The default withholding method is the flat rate: 22% federal and 8% Oregon, applied to the bonus amount directly. That is why your bonus check can look dramatically smaller than expected — the flat percentages are withheld on top of your regular withholding, which already assumed your normal salary.
The calculator models exactly this: flat federal and Oregon rates on the bonus, then FICA on the bonus amount up to the annual caps, then the 0.1% transit tax and 0.6% Paid Leave. Add your regular annual pay so the Social Security and additional-Medicare caps are applied correctly.
What you keep
Net bonus by size
Single filer with $100,000 regular pay, one allowance, outside the Portland local districts:
| Bonus | Federal 22% | Oregon 8% | FICA | Transit + Leave | Net bonus |
|---|---|---|---|---|---|
| $1,000 | $220 | $80 | $77 | $7 | $617 |
| $5,000 | $1,100 | $400 | $383 | $35 | $3,083 |
| $10,000 | $2,200 | $800 | $765 | $70 | $6,165 |
A $5,000 bonus nets about $3,083 — roughly 62% of the headline. Note the flat rates do not change with the bonus size; what changes is where you sit against the FICA caps. At $195,000 of regular pay, most of the bonus escapes Social Security, pushing the net bonus up to about $3,423.
Two methods
Percentage method vs. aggregate method
Employers can withhold bonus tax two ways. The percentage method — what this calculator shows — takes a flat 22% federal and 8% Oregon off the top. The aggregate method adds the bonus to your regular pay for one check, withholds at your marginal rates, and subtracts the regular-pay withholding. For most workers the two converge by tax time, but the percentage method is simpler and is what most Oregon employers use. If your employer aggregates, your bonus check may withhold slightly more or less than this estimate; the annual total is what matters.
The caps matter
FICA and the bonus
Social Security is capped at $184,500 of wages in 2026, and additional Medicare kicks in above $200,000 single / $250,000 married. A bonus counts toward both thresholds. If your regular pay is near or past the cap, the bonus escapes Social Security (6.2%) entirely — a real, if modest, boost to the net. The calculator applies the caps against your entered regular pay automatically, which is the detail most generic bonus calculators get wrong.
Oregon specifics
Oregon payroll taxes on a bonus
Beyond income tax, Oregon adds two payroll taxes on your bonus just like on regular wages: the statewide transit tax at 0.1% (uncapped) and Paid Leave Oregon at 0.6%, capped at $184,500 of combined wages. If you live or work in the Portland Metro district or Multnomah County, the local SHS and PFA taxes also apply to the bonus once your base income clears the thresholds. Set your region in the calculator to include them.
Planning
How to keep more of a bonus
- Defer to retirement: a pre-tax 401(k) or 403(b) contribution from the bonus cuts both federal and Oregon tax on it.
- Fund an HSA: HSA dollars are pre-tax for federal, Oregon and FICA — the triple-advantaged play, if you have the plan.
- Ask about the method: if your employer will aggregate, check whether your marginal rate is below 22% — it can improve the per-check number.
- Know the kicker: if Oregon's revenue exceeds forecast, you may get a credit on next year's taxes — a small return on the Oregon you paid on the bonus.