RSU tax rate in Oregon: state, federal, and FICA on vest income

Oregon has no general sales tax, but that does not mean equity compensation escapes tax. RSU vest FMV is ordinary wage income when shares deliver, and Oregon taxes personal income including those wages for residents and for income sourced to the state. Federal income tax and FICA apply separately on the same FMV, so planning an Oregon RSU vest requires both state and federal layers even though everyday shopping carries no sales tax.

Oregon uses progressive state income tax brackets per Oregon Department of Revenue guidance for your filing year. Large quarterly vests stacked on salary can push marginal Oregon dollars above what flat supplemental withholding captured on one pay stub. Employers may withhold Oregon tax on equity using supplemental methods that do not model your full-year taxable income.

Portland metro residents and some workers may owe additional local income tax — including the Metro Supportive Housing Services income tax where applicable — on top of state tax. Local rules depend on residence and work location within the metro area. Check current Oregon DOR and Metro publications for your address rather than assuming state withholding alone covers every local obligation.

Moving from Oregon to Washington mid-year removes Oregon state tax on post-move vests for typical WA residents, but Oregon may still tax income connected to Oregon residency before the move. Part-year resident returns allocate vests by timing and sourcing. Remote Oregon residents working for out-of-state employers generally still owe Oregon tax on vest wages as resident income.

Estimated Oregon tax may be needed when state and local withholding on a vest falls short of liability after stacking salary and multiple vests. W-2 Boxes 16–17 should include vest FMV in Oregon wages when payroll sources income correctly — reconcile against vest confirmations and any local tax lines on the pay stub.

• ✓OR state withholding line on vest pay stub.
• ✓W-2 OR wage and tax boxes.
• ✓Vest FMV in federal Box 1.
• ✓OR marginal rate estimate with all income per current DOR guidance.
• ✓Withholding gap for OR plus federal.
• ✓Move date if part-year OR.
• ✓Local tax lines if Portland metro resident.

• ✓OR vest pay stub state line.
• ✓W-2 OR boxes.
• ✓Vest confirmation.
• ✓OR estimated payment confirmations if made.
• ✓Move or residency documentation if part-year.

• ✓Part-year OR resident with large equity income.
• ✓Portland metro local tax on vest wages.
• ✓Employer withheld wrong state on OR resident vest.
• ✓Remote work for employer with no OR office.