Selling a business in Oregon: what the state takes (2026)
Oregon’s top individual income tax rate is 9.9%. Here is what an owner selling company stock pays, with 2026 rules from official sources and worked examples at $10 million, $25 million and $50 million.
- 9.9%
- Top Oregon income tax rate (2026)
- $2,475,000
- State tax on a $25M long-term gain
- 33.7%
- Combined federal and state rate on $25M
- 6 of 51
- Rank by total tax on $25M (1 = highest)
How Oregon taxes a business sale
- Income tax
- Top rate 9.9%: Over $125,000 (single); over $250,000 (joint). Top threshold is not inflation-indexed..
- Long-term capital gains
- Capital gains are part of Oregon taxable income and taxed at ordinary rates up to 9.9%, with no general exclusion or preferential rate. The reduced pass-through rates (ORS 316.043) exclude capital gains.
- Relief that applies only in some sales
- None relevant to a stock sale. Oregon's reduced capital gains rate in ORS 316.045 covers certain farm property only.
- Entity-level taxes
- The corporate activity tax (CAT) is $250 plus 0.57% of taxable commercial activity above $1 million and applies to S corps and partnerships as well as C corps.
- Local taxes
- Residents of the Portland-area Metro district pay the Metro Supportive Housing Services tax: 1% of Oregon taxable income over $128,000 single ($205,000 joint) for 2026, now inflation-indexed. Multnomah County residents also pay the Preschool for All tax: 1.5% over $125,000 single plus another 1.5% over $250,000, for a 3% top rate. A scheduled 0.8-point PFA increase was delayed to Jan 1, 2028. A Portland resident subject to both pays up to 4% more on the gain.
Three worked examples
| Long-term gain | $10,000,000 | $25,000,000 | $50,000,000 |
|---|---|---|---|
| Federal capital gains tax (20%) | $2,000,000 | $5,000,000 | $10,000,000 |
| Net investment income tax (3.8%) | $380,000 | $950,000 | $1,900,000 |
| Oregon tax | $990,000 | $2,475,000 | $4,950,000 |
| Total tax | $3,370,000 | $8,425,000 | $16,850,000 |
| Effective combined rate | 33.70% | 33.70% | 33.70% |
| Net proceeds after tax | $6,630,000 | $16,575,000 | $33,150,000 |
| Extra tax versus Texas | $990,000 | $2,475,000 | $4,950,000 |
Seller’s tax calculator
Estimate federal and state tax on a stock sale and what is left before fees and debt.
- Long-term capital gain
- $25,000,000
- Federal capital gains tax (20%)
- $5,000,000
- Net investment income tax (3.8%)
- $950,000
- Oregon tax
- $2,475,000
- Taxable gain at 9.9%
- $2,475,000
- Total tax
- $8,425,000
- Effective rate on the gain
- 33.70%
- Net proceeds after tax
- $16,575,000
Not included: Metro SHS 1% + Multnomah County Preschool for All 3% (Portland) residents pay up to 4% on top, about $1,000,000 on this gain.
Illustration, not tax advice. Assumes a resident individual, the whole gain long-term, top marginal rates, no state credits, installment terms, QSBS exclusion or other planning, and no local taxes. Net proceeds are before transaction fees, debt repayment, escrows and earn-outs. Rates are for tax year 2026 where published; see the methodology.
Compare with other states
Neighboring states
- California37.1% combined, $15.72M net
- Idaho29.1% combined, $17.73M net
- Nevada23.8% combined, $19.05M net
- Washington33.5% combined, $16.63M net
Methodology and sources
Oregon figures are for tax year 2026. Top bracket fixed by ORS 316.037 at $125,000 single (not indexed); lower brackets are indexed. Tax Foundation's 2026 table shows 9.9% over $125,000. DOR's PIT page still shows only 2025 rate charts. The examples assume a resident individual selling privately held stock for a long-term gain equal to the sale price (zero basis), with every dollar taxed at the top marginal rates, the federal 20% capital gains rate and the 3.8% net investment income tax, and no planning, credits or local taxes. Full assumptions are in the report methodology.
All 50 states and DC with source URLs.
- 1ORS 316.037 (rate schedule; top bracket not indexed)
- 2ORS 316.043 (reduced pass-through rates exclude capital gains)
- 3ORS 317A.125 (corporate activity tax rate)
- 4City of Portland Revenue Division, Metro SHS and Multnomah County PFA personal income taxes
- 5Multnomah County news release on delay of the PFA tax increase
- 6Tax Foundation, State Individual Income Tax Rates and Brackets, 2026. Secondary source
Data last updated October 26, 2026.
Cite this research
You may quote and republish figures from this page with attribution and a link to the source.
Citation
Laurent Capital Research, “The Seller’s Tax Map: What Selling a Business Costs in Every State (2026): Oregon,” 2026, https://laurent.capital/research/seller-tax-map/oregonLink (HTML)
<a href="https://laurent.capital/research/seller-tax-map/oregon">The Seller’s Tax Map: What Selling a Business Costs in Every State (2026): Oregon</a> (Laurent Capital)Planning a sale and weighing the tax cost?
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