Roth conversion taxes in Oregon (2026)
By Mario Bailey · Published · Last reviewed
Oregon taxes Roth conversions as ordinary income at graduated rates up to 9.9%. A conversion adds to your state taxable income in the year you convert, on top of federal tax. The table below shows the computed Oregon tax on a $50,000 conversion at three baseline income levels, using 2026 rates.
Computed example: $50,000 conversion
State tax only (federal not included), age 66, standard deduction, no other state adjustments. Computed with the same functions the calculator uses.
| Filing status | Baseline income | State tax without conversion | With $50,000 conversion | Tax on the conversion | Effective rate |
|---|---|---|---|---|---|
| Single | $40,000 | $2,404 | $6,779 | $4,375 | 8.8% |
| Single | $80,000 | $5,904 | $10,279 | $4,375 | 8.8% |
| Single | $150,000 | $12,212 | $17,162 | $4,950 | 9.9% |
| Married filing jointly | $40,000 | $1,855 | $6,230 | $4,375 | 8.8% |
| Married filing jointly | $80,000 | $5,355 | $9,730 | $4,375 | 8.8% |
| Married filing jointly | $150,000 | $11,480 | $15,855 | $4,375 | 8.8% |
Social Security and retirement income
Oregon does not tax Social Security benefits. A conversion can still raise the federally taxable share of your benefits through the provisional income formula. Oregon also excludes up to $6,250 of retirement income for filers age 62 and over, which can shelter part of a conversion depending on how the state defines eligible retirement income.
Oregon retirement income credit eliminated for 2026+. Oregon pension deduction (ORS 316.157) allows up to $6,250 (single) or $12,500 (MFJ) for age 62+. This file models the single cap; MFJ filers understate their exclusion slightly. Standard deductions: single/MFS $2,835, MFJ $5,670, HoH $4,560.
FAQ
Does Oregon tax Roth conversions?
Yes. Oregon taxes Roth conversions as ordinary income at graduated rates up to 9.9%. Federal tax applies on top.
Does Oregon tax Social Security benefits?
No. Social Security benefits are not subject to Oregon income tax.
What is the top Oregon rate on a conversion in 2026?
9.9% at the highest marginal rate.
Model your Oregon conversion in the calculator
Rate data source: Oregon Department of Revenue, 2026 Withholding Tax Tables 150-206-430 (oregon.gov/dor); four-bracket structure 4.75%–9.9%; ORS 316.157 (pension deduction)