A three-layer stack
The three local taxes
Portland-area residents and workers can face three separate local income taxes, all of which stack on top of federal, FICA and Oregon state tax. In order of size: the Metro Supportive Housing Services tax (SHS) at 1%, the Multnomah County Preschool for All tax (PFA) at 1.5% to 3%, and the flat $35 Portland Arts Tax. Together they can add 2.5% to 4% on top of an already-high Oregon effective rate at upper incomes.
This guide explains each one, who pays it, and \u2014 crucially \u2014 why you might owe them even though nothing was withheld from your check.
The district tax
Metro Supportive Housing Services (1%)
Metro SHS is a 1% tax on income above the threshold \u2014 roughly $125,000 single / $200,000 married for 2026, and inflation-indexed. It funds supportive housing services across the Portland Metro district, which covers the urban portions of Multnomah, Washington and Clackamas counties plus part of Columbia County.
Two triggers apply: you pay it as a Metro district resident, and you pay it on income earned within the district. So a Beaverton or Hillsboro resident is liable (Washington County is in the district), and a Salem resident who works in Portland may be liable on the Portland-sourced income. The tax is calculated on income above the threshold, not on the first dollar.
The county tax
Multnomah Preschool for All (1.5% to 3%)
Multnomah PFA is a county income tax at 1.5% on income above roughly $125,000 single / $200,000 married, with an additional 1.5% above $250,000 single / $400,000 married \u2014 a top rate of 3%. It funds preschool access in Multnomah County and applies to county residents plus county-sourced income.
Because it\u2019s a county tax, your residence matters: a Gresham or Portland resident is liable; a Beaverton or Hillsboro resident is not, even working in Portland. The second tier is the reason Multnomah households above $250,000 see local taxes jump fastest.
The flat tax
The $35 Portland Arts Tax
The Arts Tax is a flat $35 per year for adults who live within Portland city limits and earn above the poverty level. Unlike SHS and PFA, it\u2019s a head tax, not an income percentage \u2014 and it\u2019s billed separately by the City of Portland, never withheld from a paycheck. Gresham, Beaverton and Hillsboro residents do not pay it; only Portland residents do.
Residency vs. work location
Who pays \u2014 residency and work location
- Metro SHS: district residents on all income, plus anyone on income earned in the district.
- Multnomah PFA: Multnomah County residents on all income, plus anyone on county-sourced income.
- Arts Tax: Portland residents only.
Run the Portland calculator (Multnomah region) or the Beaverton / Hillsboro calculators (Metro region) to see exactly which apply to you.
The surprise
Why you may get a surprise bill
Here\u2019s the trap: SHS and PFA are frequently not withheld by employers. Withholding began unevenly after the taxes launched, and many payroll systems still don\u2019t compute them. If your employer doesn\u2019t withhold, you\u2019re still liable \u2014 and you\u2019ll owe at filing or via quarterly estimated payments. Oregonians routinely get April bills for thousands of dollars they never saw on a stub. This site\u2019s calculators show the true local-tax cost so you can set aside the money or make quarterly payments.
The real numbers
What it costs at common incomes
Single filer, one allowance, living in Multnomah County, 2026:
| Gross | SHS (1%) | PFA (1.5%) | Local total | Take-home |
|---|---|---|---|---|
| $100,000 | $0 | $0 | $0 | $71,333 |
| $150,000 | $221 | $331 | $552 | $99,384 |
| $200,000 | $721 | $1,081 | $1,802 | $128,063 |
At $200,000 the local stack costs over $1,800 a year in Multnomah County \u2014 money most residents never see withheld. The PFA second tier means the number climbs sharply above $250,000. Compare the Beaverton numbers (SHS only) to see the county-line difference.