What is the Oregon PTET rate?

Oregon's PTET rate is 9.00% flat. Graduated: 9% on first $250,000 of distributive proceeds; rate increases for higher amounts per Form OR-21 instructions (verify upper bracket structure).

Is the Oregon owner credit refundable?

Oregon's PTET owner credit is refundable. Per Schedule OR-21-K-1: member receives REFUNDABLE PTE-E tax credit for their share.

Does Oregon PTET affect composite-return filing?

Stacks. See the composite-vs-PTET page for the full matrix.

Oregon · OR

Oregon Pass-Through Entity Tax (PTET)

Oregon's PTET regime is one of the 37+ state workarounds to the federal SALT cap (IRC §164(b)(6)). The election is annual, statute-pinned below, and interacts with composite filing and §199A QBI in state-specific ways.

Statute: ORS 314.778 et seq. (Pass-Through Entity Elective Tax); ORS 314.605–314.675 (apportionment)
State DOR portal: https://www.oregon.gov/dor/programs/businesses/pages/pass-through-entity-elective-tax.aspx
Election deadline: [PLACEHOLDER: state DOR cite] — Form OR-21 election deadline to be pinned.
Election form: Form OR-21 (Oregon Pass-Through Entity Elective Tax); Schedule OR-21-AP (apportionment); Schedule OR-21-K-1 (member share)
Entity-level rate: 9.00% — Graduated: 9% on first $250,000 of distributive proceeds; rate increases for higher amounts per Form OR-21 instructions (verify upper bracket structure).
Eligible entities: s-corp, partnership, llc-as-s, llc-as-partnership
Owner credit: refundable — Per Schedule OR-21-K-1: member receives REFUNDABLE PTE-E tax credit for their share.
Composite interaction: stacks
§199A QBI base reduction: Yes — Reduces federal flow-through income (Notice 2020-75).
Last verified: 2026-05-11

Source: oregon.gov/dor/programs/businesses/pages/pass-through-entity-elective-tax.aspx + 2025 Form OR-21 instructions.

IRC §164(b)(6)Notice 2020-75 IRC §199A

Reference computation

For a Oregon pass-through entity with $500,000 of qualified net income allocated to this state, at a 37% federal marginal bracket, the entity-level PTET and federal-deduction math is:

Oregon — reference example

QBI allocation·OR rate= Entity-level tax

$500,000×9%=$45,000

ORS 314.778 et seq. (Pass-Through Entity Elective Tax); ORS 314.605–314.675 (apportionment)

Entity tax·Federal bracket= Federal deduction (gross)

$45,000×37%=$16,650

At a 37% federal bracket, the entity-level deduction saves $16,650 in federal tax. Net of §199A QBI offset (~20% × bracket × entity tax = $3,330), aggregate benefit is approximately $13,320.

IRS Notice 2020-75

Run the picker pre-filled for Oregon

Election walkthrough

Verify eligibility. Oregon accepts: s-corp, partnership, llc-as-s, llc-as-partnership.
Check the deadline. [PLACEHOLDER: state DOR cite] — Form OR-21 election deadline to be pinned. PTEs must make estimated payments if expected tax ≥ $1,000.
Compute the entity-level tax. Apply the 9.00% rate to qualified net income.
Pay and file. Use Form OR-21 (Oregon Pass-Through Entity Elective Tax); Schedule OR-21-AP (apportionment); Schedule OR-21-K-1 (member share). Quarterly estimates may be required.
Owners claim the state credit. refundable credit on the personal state return.
Verify composite interaction. Composite interaction: stacks. See composite vs PTET.
Run the federal §199A QBI math. PTET reduces the QBI base proportionally; net the federal SALT-arbitrage against the §199A offset.

Oregon PTET — common questions

Annual deadline reminder

State PTET law revises annually. Oregon's data was last verified on 2026-05-11. Re-confirm with the state DOR primary source before electing or filing. Last full-site review: 2026-05-12.

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Reference computation

For a Oregon pass-through entity with $500,000 of qualified net income allocated to this state, at a 37% federal marginal bracket, the entity-level PTET and federal-deduction math is:

Entity tax·Federal bracket= Federal deduction (gross)

$45,000×37%=$16,650

At a 37% federal bracket, the entity-level deduction saves $16,650 in federal tax. Net of §199A QBI offset (~20% × bracket × entity tax = $3,330), aggregate benefit is approximately $13,320.

IRS Notice 2020-75

Election walkthrough

Verify eligibility. Oregon accepts: s-corp, partnership, llc-as-s, llc-as-partnership.

Check the deadline. [PLACEHOLDER: state DOR cite] — Form OR-21 election deadline to be pinned. PTEs must make estimated payments if expected tax ≥ $1,000.

Compute the entity-level tax. Apply the 9.00% rate to qualified net income.

Pay and file. Use Form OR-21 (Oregon Pass-Through Entity Elective Tax); Schedule OR-21-AP (apportionment); Schedule OR-21-K-1 (member share). Quarterly estimates may be required.

Owners claim the state credit. refundable credit on the personal state return.

Verify composite interaction. Composite interaction: stacks. See composite vs PTET.

Run the federal §199A QBI math. PTET reduces the QBI base proportionally; net the federal SALT-arbitrage against the §199A offset.

Oregon PTET — common questions