OR · Tax Year 2026
How Oregon taxes Social Security, pensions, 401(k)/IRA withdrawals, and military retirement pay in 2026.
Federal/military pension portion attributable to service before October 1, 1991 may be subtracted; no general dollar retirement exclusion
Income-tested retirement credit generally age 62+
Additional Notes
Post-1991 service portion generally taxable
Does Oregon tax Social Security benefits?
No. Oregon does not tax Social Security retirement benefits.
Does Oregon tax pension income?
Partially. Oregon provides exemptions for certain types of pension income — often public, government, or military pensions — while private pensions may be partially or fully taxable. See eligibility details above.
Does Oregon tax 401(k) and IRA withdrawals?
Yes, traditional 401(k) and IRA withdrawals are generally taxable in Oregon. However, exclusions or credits may apply depending on your age and income — review the details above.
Is Oregon a tax-friendly state for retirees?
It depends on your income mix. Oregon offers some retirement income relief, but the rules vary by income type and eligibility. Review the details above and consider consulting a tax professional for your specific situation.
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Data Source
Official Oregon state tax authority guidance. Tax year 2026. Some annually indexed thresholds may not yet be finalized — confirm with the state revenue department before filing.
Neighboring States
Data reflects tax year 2026 rules sourced from official Oregon state tax authorities. This page is for informational purposes only — always confirm current rules with the state revenue department or a qualified tax professional before making financial or relocation decisions.