Category Archives: Bookkeeping

This has an added effect of driving down your net income for the period. In the equation above, beginning inventory reflects the total value of whatever inventory you carried over from the previous accounting period. This could be the prior year, quarter, or month, depending on how frequently you calculate COGS. Likewise, ending inventory reflects the total value of whatever inventory remains unsold at the end of the accounting period, which you will carry over into the next. LIFO assumes that the first socks you sell are the last socks you purchased. Since you sold 400 pairs, the first 300 cost $10 each, and the next 100 cost $5 each.

Each method has its advantages and implications for COGS calculation and tax obligations, so it’s essential to choose wisely and stick with the chosen method. Once calculated, COGS appears as a direct expense below revenue on the income statement, impacting gross profit. Enerpize is an all-in-one online accounting software designed to streamline financial management for businesses of all sizes.

Ending inventory is the value of inventory at the end of the year. Learn marketing techniques that can enhance efficiency and drive business growth. Let’s break it down step by step with formulas and real-world examples to make it easy to grasp. Tally up what you spend on new inventory—fuel deliveries, snack orders, even those extra straws. We’ll walk through it with a real-world example—say, a typical month at your c-store or gas station. Cost of goods sold is also an important figure for auditing purposes because it offers transparency over cost and earnings.

Some service companies may record the cost of goods sold as related to their services. But other service companies—sometimes known as pure service companies—will not record COGS at all. The difference is some service companies do not have any goods to sell, nor do they have inventory. But to calculate your profits and expenses properly, you need to understand how money flows through your business.

Calculating COGS using LIFO

The cost of goods sold applies only to businesses that sell products. If your business is service based (like a psychology clinic or legal team), your direct costs don’t come from sales of goods. Instead, your direct costs are any expenses related directly to your service. For instance, an outsourced accounting company would likely include its accounting software subscription as part of its direct costs.

Step 4: Apply the COGS Formula

• Poor assessment of your COGS can impact how much tax you’ll pay or overpay.
• If your business is U.S.-based, you’ll need to fill out IRS Form 970 before switching to LIFO (you can’t use LIFO in Canada or any other IFRS country).
• It involves a simple formula and can be calculated monthly to keep track of progress or even less frequently for more established businesses.
• Count it all and calculate what you paid (your cost, not the selling price).

In almost all cases, the metric cost of goods sold (COGS) is the best way to measure these expenses. Below, you’ll learn how to calculate COGS, including automatically via accounting software. Cost of goods sold does not include costs unrelated to making or purchasing products for sale or resale or providing services. General business expenses, such as marketing, are often incurred regardless of if you sell certain products and are commonly classified as overhead costs.

Understanding the COGS formula

Using LIFO, the jeweler would list COGS as $150, regardless of the price at the beginning of production. Using this method, the jeweler would report deflated net income costs and a lower ending balance in the inventory. Operational costs such as marketing, sales force expenses, and after-sales support are not included in COGS. These costs can be substantial and are vital for driving sales and supporting the product’s market position. By not including these costs, COGS overlooks essential aspects of the total cost of delivering a product to market.

But it also helps determine how efficiently you are running your business. Can you afford to update tools or renovate your business space? These are all questions where the answer is determined by accurately assessing your COGS. Both the Old UK generally accepted accounting principles (GAAP) and the current Financial Reporting Standard (FRS) require COGS for Income Tax filing for most businesses.

Net Income and Taxes

Operating expenses (OPEX) are the indirect costs your business incurs that aren’t directly tied to production. SG&A expenses also count as operating expenses or indirect costs on your income statement. In service-oriented businesses, where direct costs of services (like labor) may not be as clearly definable as in manufacturing, COGS becomes a less effective metric. In these cases, comprehensive cost accounting methods that can allocate overhead and administrative costs more accurately are more informative.

The averaging method for calculating COGS is a technique that doesn’t consider the specific cost of individual units. It also doesn’t matter what was purchased when or how inventory costs fluctuate. Instead, businesses using the averaging method establish an average per unit cost and then multiply that average by the number of units sold during a particular period to determine COGS. While there’s only one formula for calculating COGS, companies can choose from several different accounting methods to find their specific cost. Each method is a different way of calculating the cost of the specific items sold in a given period.

COGS only applies to those costs directly related to producing goods intended for sale. At the bottom of the sheet, you’ll subtract your expenses from your revenue to list your net profit. To find the COGS, a company must find the value of its inventory at the beginning of the year, which is the value of inventory at the end of the previous year. The cost of goods made or bought adjusts according to changes in inventory. For example, if 500 units are made or bought, but inventory rises by 50 units, then the cost of 450 units is the COGS. If inventory decreases by 50 units, the cost of 550 units is the COGS.

• The ending inventory is the value of unsold goods remaining at the end of the period.
• Cost of goods sold is also an important figure for auditing purposes because it offers transparency over cost and earnings.
• It’s a key figure in calculating gross profit and understanding a company’s profitability, especially for businesses like retail stores, convenience stores, or gas stations.
• However, a physical therapist who keeps an inventory of at-home equipment to resell to patients would likely want to keep track of the cost of goods sold.
• Cost tracking is essential in calculating the correct profit margin of an item.

Cost of goods sold formula

FreshBooks offers COGS tracking as part of its suite of accounting features. It can computing cost of goods sold help you track and categorise your expenses more accurately. Accurate records can give you peace of mind that you are on track come reporting time.

The IRS has a long article about COGS, but it’s always a good idea to consult a CPA to ensure you’re not missing out on any deductions. They can look at complex things like rent, mortgage interest and utilities, and figure out how to assign a percentage to each of the products in your inventory. It’s the sum total of the money you spent getting your goods into your customer’s hands—and that’s a deductible business expense. The more eligible items you include in your COGS calculation, the lower your small business tax bill.

This is everything you have in stock at the start of the month—fuel in the tanks, candy on the racks, coffee cups in the back. Count it all and calculate what you paid (your cost, not the selling price). Through the COGS period, you purchase wool and cotton to make more items, along with additional items such as elastic and pre-made logos. Different accounting treatments can also yield different results of running the cost of goods sold formula. Businesses should maintain detailed inventory records, clearly allocate costs between COGS and OPEX, and retain documentation to support their calculations in case of tax scrutiny.

In addition, the cost of goods sold calculation must factor in the ending inventory balance. If there is a physical inventory count that does not match the book balance of the ending inventory, then the difference must be charged to the cost of goods sold. The beginning inventory is the total value of goods available at the start of the accounting period. It includes leftover stock from the previous period and can be found in the company’s balance sheet under inventory. Understanding these components helps businesses accurately calculate COGS.

Regular reconciliation of inventory records with physical counts is crucial for identifying discrepancies and ensuring that the reported COGS is accurate. Next, you need to account for any additional inventory purchased during the accounting period. This includes both raw materials and finished goods that are ready for sale. Let’s say you purchased $100,000 worth of additional inventory throughout the year; this amount is added to the beginning inventory. For example, assume that a company purchased materials to produce four units of their goods. As revenue increases, more resources are required to produce the goods or service.

However, for certain types of income, such as interest or dividends, a new form Retail Accounting may need to be submitted every three years. When filling out a W-8 form, it is important to provide accurate and consistent personal information. This includes your full name, date of birth, permanent address, and country of citizenship. It is crucial to double check this information against official documents such as your passport or national ID card.

• However, the main purpose of the W8 BEN form is to establish eligibility for a tax withholding exemption or rate reduction.
• So, in summary, W-8 forms are for nonresidents who may qualify for tax treaty benefits, while W-9 forms are for US taxpayers.
• However, the form becomes invalid immediately if any information on it changes, such as your country of residence or entity structure.
• A W-8BEN-E form is required for foreign businesses that are earning income from a US source.
• Generally, Form W-8BEN and W-8BEN-E remain valid for three years after the date it was signed, while a Form W-8EXP and W-8IMY remain valid for one year after the date it was signed.

Outsource Work from USA to India – Complete Guide for US Companies

As with foreign persons who receive certain types of income, the money generated by foreign businesses is typically withheld at a 30% rate by the payer or withholding agent in the United States. However, the form allows the foreign business to claim a reduction in taxes if its country of residence has a tax treaty with the United States. For this reason, any foreign person or company who expects to receive payments from U.S. sources should complete and submit a W-8 form beforehand. The information provided on the form will help inform the payer about the appropriate tax rate and whether withholding should apply at all. For example, some countries have treaties with the United States that provide reduced withholding rates for their citizens – something that must be stated on the W-8 form in order for these benefits to take effect. In order for this exemption or reduction in taxes to be claimed on behalf of the payee, it must be established that they fall under one of several categories specified in IRS regulations.

Different Types of W-8 Forms

The W-8 form will collect information on who the individual or business is, where they’re from, and the types of income earned. For example, a non-resident foreigner who earns interest or dividends from U.S.-issued securities would likely file a W-8BEN, while a foreign nonprofit with operations in the U.S. might need to file retained earnings form W-8ECI. Former U.S. residents who earn retirement income, or who occasionally perform freelance work for U.S. clients, might also have to submit the form to reduce their tax withholdings.

• Working with tax professionals during this process can help ensure all corrections are handled properly and prevent similar issues in the future.
• Instead, you should submit the completed form to the party that requests it.
• The form should be returned to the company or entity that sent the form W-8BEN, not to the IRS.
• We are committed to empowering our readers with the knowledge they need to understand their tax obligations and maximize their refunds.
• You need to file a new W-8BEN sooner for changes in circumstances causing information on a submitted W-8 BEN to be incorrect.

What Happens if You Don’t Submit a w8 Form?

These typically include interest or dividends received from a US payor, but also include license/royalty fees paid by a US payor. For tech companies, including SaaS companies, it may be unclear whether some element of the payment could be treated as a license fee. If there is a US source withholdable payment, the payor may require Part III to be completed to reduce US withholding; absent this the payor may withhold 30% of the gross payment. As US payors are treated as withholding agents, the IRS imposes joint and several liability. In the event a payment is made to an overseas recipient and tax is not properly withheld, the IRS is permitted to assess the tax on the US payor and hold the US payor liable for the under-withheld tax. Understandably accounts payable departments tend to err on the side of collecting a what is a w8 Form W-8BEN-E even on non-withholdable payments just in case the IRS were to request the information – e.g., as part of a tax audit.

Avoiding Errors That Cause Rejections

Also, stay informed about any changes in tax regulations that may impact the requirements for the W-8EXP form. Navigating international tax regulations can be complex, especially for non-U.S. One critical requirement for foreign taxpayers is completing IRS Form W-8, which determines their tax obligations, withholding rates, and eligibility for treaty benefits. Understanding this form is essential for avoiding unnecessary tax withholding and ensuring compliance with U.S. tax laws.

Nonprofit financial management may not be the first thing on your mind, but it’s a necessary part of making your organization run smoothly and fulfilling your nonprofit’s purpose. These goals should be tailored to the organization’s needs and should take into account both short-term and long-term objectives. By setting financial goals, you will be able to ensure that your https://nerdbot.com/2025/06/10/the-key-benefits-of-accounting-services-for-nonprofit-organizations/ nonprofit organization is able to achieve its mission and remain financially secure in the future. If you’re looking for an all-star accounting team to support your nonprofit as it builds its financial plan, we should talk. We’re Hiline – a one-stop shop for all things tech-enabled accounting – and we provide a premium experience to nonprofits looking to take their finances to the next level. Cash management involves understanding where your nonprofit’s money is going, why, and how it’s entering the org.

Nonprofit accounting: Best practices for financial management

• With solid financial analysis, nonprofits can make choices that align with their goals and deliver real impact.
• In 2023, the one-year donor retention rate was 44%, meaning less than half of donors made a repeat donation at organizations they contributed to the previous year.
• Having a contingency plan in place can make all the difference to your nonprofit organization’s financial planning.
• Their ability to analyze risks, allocate resources efficiently, and implement a nonprofit crisis management plan ensures the organization can continue delivering on its mission under challenging circumstances.
• A comprehensive nonprofit crisis management plan equips organizations with the tools to respond proactively, ensuring they continue delivering on their mission even under adverse conditions.
• Establishing reserve funds, building reserves and identifying alternative revenue sources for functional expenses can provide a cushion during unforeseen circumstances.

After gathering all these market insights and information, it’s time to set your fundraising goals. This is where you define how much money you expect to bring in for your nonprofit organization. Before diving right into financial planning, it’s crucial to explore the broader nonprofit industry.

The Hive Networking Community

This section of your financial plan should briefly describe the key people in the organization and the skills and expertise they bring with them. The executive summary does as its name suggests, summarizing the contents of the plan in a few paragraphs for busy people like executives. The executive summary is usually written last because it highlights the most important aspect of the financial plan, like how much money accounting services for nonprofit organizations you expect to generate and the major programs and services to be developed. When you’re explaining to supporters what your nonprofit spends it funding on, be sure to put everything in terms of impact.

Nonprofit Financial Planning with Data Tables and Templates

This comprehensive approach enables nonprofits to build a sustainable foundation, adapt to challenges, and continue fulfilling their mission effectively. Although nonprofits primarily focus on mission-driven objectives, understanding financial sustainability is essential for their long-term viability. Financial sustainability ensures that organizations maintain sufficient resources to fulfill their missions without compromising future operations.

Fiscal Policies and Procedures

Although many nonprofits face resource constraints, the strategic adoption of technology can significantly enhance financial management by improving accuracy, efficiency, and transparency. Cloud based solutions offer scalable platforms that reduce upfront infrastructure costs and facilitate real-time financial data access across departments. Integrating specialized financial software automates routine tasks such as bookkeeping, budgeting, and reporting, minimizing human error and freeing staff for higher-value activities.

However, you pay rent, subscription fees, and insurance premiums in advance, making them annuities due. Mathematically, that adjustment involves multiplying the result by the discount rate plus 1. You can see this by comparing the two present value formulas below. Note that “pmt” equals the payment amount, “r” equals the discount rate, and “n” is the total number of payments. First, know that the present value of any annuity will be less than the sum of the payments. This is because cash promised in the future is less valuable than cash in your hand today.

As a result, you can access funds without fully surrendering the annuity. Unpaid loans, however, can reduce your future annuity payments and may be taxable. The amount of money needed to start an annuity depends on the type of annuity and the provider. Some annuities may require a minimum investment, while others have no minimum. Many annuities grow over time and are known as deferred annuities. On the other hand, immediate annuities begin payments shortly after a one-time investment is placed and offer tax-deferral benefits.

• While monthly payments are common, annuities may be paid off in lump sums, payments every other month, or once a year.
• The present value of the annuity due formula uses the same inputs but adjusts for the earlier payment timing.
• While you can cash out your annuity early, this could result in a surrender charge and incur costly fees from your insurance provider.
• These payments are made after a certain period and at the end of the payment interval.
• While immediate annuities are beneficial in many situations, they do come with some drawbacks.

Annuity and Insurance Labs

Through this platform, he and his team aim to eliminate the guesswork in retirement planning by helping individuals find the best insurance coverage at the most competitive rates. His mission is to simplify retirement planning and insurance, ensuring that clients understand their choices and secure the best coverage at unbeatable rates. For many at retirement age, immediate annuities provide excellent value and give the peace of mind that comes with knowing that they will not outlive their retirement savings. A significant market downturn in your retirement years can have a devastating effect on your plans. You will receive the same amount every time no matter what happens with the market, which can provide valuable peace of mind.

The Bankrate promise

So, the article makes an attempt to shed light on the differences between the two, have a look. ordinary annuity vs annuity due The timing of payments, in turn, affects the annuity’s present value. Understanding present value can help you evaluate an income annuity relative to its cost.

Suppose a corporate bond pays $ 30,000 annually for the next 10 years at an interest rate of 6% to investors. We can use the formula above to calculate the present value of this ordinary annuity. Common examples of ordinary annuities include payments on bonds, saving certificates, preference shares, etc. These payments are made after a certain period and at the end of the payment interval. All types of annuities have specific characteristics that could make them more or less attractive to you.

Understanding Annuity Due vs. Ordinary Annuity: Key Differences and Benefits

Compared with ordinary annuities, a Due annuity is calculated using slightly different formulas. During each period, payments are made at the beginning, not the end. Ordinary annuities and Due annuities differ in their payment timing. An ordinary annuity pays at the end of every period, whereas a Due annuity pays at the beginning of each period. Because of the time value of money, annuity dues generally have a higher value than ordinary annuities. As the payment arrives earlier, there is more time for it to grow through interest or investment.

How Much Do Annuities Cost?

Deciding which annuity option is best for you depends on various factors. As you decide whether to buy an annuity, remember the following to ensure you choose what works best for you. Ranging from three to nine years, they offer predictable returns, making them a stable choice for securing one’s financial future. Ordinary annuities pay at the end of each period, while Due annuities pay at the beginning of each period.

The present value of the ordinary annuity formula considers the dollar amount of each payment, the discount rate, and the number of payments. The present value of the annuity due formula uses the same inputs but adjusts for the earlier payment timing. Once you have consulted with a financial professional and established the type of annuity that would suit your needs, the next step is determining the best way to fund the purchase. The most common source for funding an immediate annuity is savings from a 401(k), an IRA, or another retirement account. Another common option is to use an annuity as a bridge for a certain number of years. For example, let’s say you want to retire at age 60 but want to defer collecting Social Security until age 70 in order to .

Some annuities may offer additional death benefits for an extra fee, increasing the benefit amount beyond the account’s value during the accumulation phase. Annuity due accounts have a higher present value since the early payments allow the money more time to generate a significant return. Also, the PV of an annuity due is generally higher than an ordinary annuity. Likewise, payers of annuities would prefer an ordinary annuity mechanism.

The timing difference directly impacts the present value and future value of all annuities. Ordinary annuities are typically more costly to the investor than Due annuities for the same payment stream because of the delayed receipt of payments. Alternatively, ordinary annuities have a lower future value than annuities due to fewer compounding periods. This seemingly small difference in timing can impact the future value of an annuity because of the time value of money. Money received earlier allows it more time to earn interest, potentially leading to a higher future value compared to an ordinary annuity with the same payment amount. An ordinary annuity can be any financial obligation that requires periodic payments made at the end of a period.

In this article, we’ll unpack these differences, how each type works, and the financial implications to help you choose the best option for your needs. The differences between an annuity due and ordinary annuity are tabulated below. If you use a spreadsheet, look for the PMT function under financials. Remember, these are just examples, and the actual payment amounts of an annuity will differ depending on the specific terms of the contract. The calculation of the payment amount (PMT) for an annuity due also uses a formula that considers the time value of money. The four main types of annuities are immediate, deferred, fixed, and variable.

Investors face possible highs and lows in future market performance, making monitoring investments and realigning funds essential as retirement approaches or job situations change. Due to the payment occurring at the end of a period, an ordinary annuity is more beneficial when making payments. The prime difference between both annuity types is the payment timing for each payment interval. Lease, rental, and interest payments paid in advance are examples of annuity-due instruments. However, in the financial markets, ordinary annuity instruments are more common.

With an annuity due, the initial payment and all subsequent payments are made at the beginning of each payment period. This seemingly minor difference can impact the overall value of the annuity due to the time value of money. Annuities sold by insurance companies to provide retirement income can be structured as ordinary annuities or annuities due. Because you can invest and grow cash on hand — which you cannot do with cash promised. Present value formulas account for this by using an interest rate to discount those future payments.

Variable annuities invest policyholder deposits in various investments, while fixed annuities grow the deposits at fixed interest rates. Indexed annuities provide returns based on how a selected index fund performs. Any fixed payment for a service or property before a service period begins is an example of an annuity due payment.

• In contrast, an annuity due requires payments to be made at the beginning of each period.
• Annuities typically allow tax-deferred growth, meaning investment grows without immediate tax, enhancing their retirement planning appeal.
• Bankrate.com is an independent, advertising-supported publisher and comparison service.
• Carbon Collective is the first online investment advisor 100% focused on solving climate change.
• An annuity due is less common than an ordinary annuity, but it works in a similar way.
• Because of the time value of money, annuity dues generally have a higher value than ordinary annuities.

Because annuity payments are due at the beginning of a period, if all else is equal, the present value of an annuity due is higher than the present value of an ordinary annuity. CFI explains that this is due to the time value of money principle since annuity due payments are received earlier. If you are collecting annuity payments, an annuity due is beneficial because of that higher present value. A lump sum payment investment in an ordinary annuity results in fixed payments over time, typically commencing at the end of the initial period. This deferred payment arrangement offers a clear financial roadmap for effective budget planning.

These updates are critical for businesses to review for compliance and tax optimization. Lawmakers need to recognize the damage caused by growing income inequality and enact policies that lift up all Oregonians, not just the richest. One way to do so is to not wait to tax capital gains – the profits from the sale of stocks, bonds, and other assets. Under current law, workers see their income taxed on a regular basis, while holders of capital assets don’t pay taxes on their gains until they sell.

Property Taxes by State and County, 2025

As mentioned above, these are pre-tax contributions, so not only do they help you save for the future, they also save you money on your taxes now. The Revenue Division may also begin collection activity for the balance due for your account. To request a filing extension, you must submit an extension payment by the original return due date for an automatic six-month filing extension. Extension payments may be made online or by mail using a payment voucher.

The corporate income tax has weakened, despite strong corporate profits

• This can help you understand what tax bracket you fall in and what to expect when filing.
• Revenue from the property tax typically goes to support local services such as schools and law enforcement.
• Oregon’s maximum marginal income tax rate is the 1st highest in the United States, ranking directly below Oregon’s %.
• Oregon levies a progressive state income tax system with one of the highest top rates in the U.S., at 9.90%.
• Right now, the Oregon legislature is considering Senate Bill 1 that would add an optional form to Oregon’s personal income taxes, allowing people to select up to three racial and ethnic identifiers from nearly 40 definitions.
• Most properties are taxed by a number of districts, such as a city, county, school district, community college, fire district or port.

While the top marginal rate remains at 9.9%, the income thresholds for each bracket have shifted slightly to prevent “bracket creep,” where inflation results in higher tax liabilities without actual income growth. In Oregon, different tax brackets are applicable to different filing types. Married couples filing their Oregon income tax return jointly will usually have wider tax brackets than those filing separately or as an individual. The Income tax rates and personal allowances in Oregon are updated annually with new tax tables published for Resident and Non-resident taxpayers. The Tax tables below include the tax rates, thresholds and allowances Keep Records for Small Business included in the Oregon Tax Calculator 2020.

How Oregon residency impacts tax filing

This allows the wealthy to avoid taxes for years, and sometimes forever. We’ve built a platform to give everyone access to the tax and wealth-building tools typically reserved for wealthy individuals with a team of accountants and lawyers. We make it simple and seamless ledger account for our customers to take advantage of these hard-to-access tax-advantaged structures. With Valur, you can build your wealth more efficiently at less than half the cost of competitors. You can also compare the quantitative returns and tax savings of these different strategies using our ordinary income tax savings calculator and customize it to your own situation.

If you do not have an estimated tax balance due but would like to request an extension to file, your federal or state extension will serve as your Metro SHS and/or your Multnomah County PFA Personal Income Tax extension. Check the “Extension Filed” box when you file your personal income tax return(s) and attach a copy of your federal extension or verification of your Oregon extension payment with your return. These bracket adjustments intersect with deductions and credits, which can influence a taxpayer’s net liability. For example, credits for dependents or education expenses can reduce taxable income, potentially placing taxpayers in lower brackets. Understanding one’s position within these brackets is essential for effective tax planning, such as making retirement contributions or charitable donations to maximize tax benefits. The Tax tables below include the tax rates, thresholds and allowances included in the Oregon Tax Calculator 2019.

Common Mistakes in Tax Filings

Beyond federal income taxes, your employer will also withhold Social Security and Medicare taxes from each of your paychecks. Social Security tax is withheld at 6.2% and Medicare tax at 1.45% of your wages. Your employer then matches those amounts, so the total contribution is double what you paid. If you earn wages in excess of $200,000 as a single filer, head of household or qualifying widow(er), these wages are subject to a 0.9% Medicare surtax.

If you receive a U.S. government pension for service before October 1991, you may be entitled tosubtract all or part of that pension on your oregon state income tax Oregon return. Oregondoesn’t tax Social Security or Railroad Retirement Board benefits. Another way you can alter your paycheck is to change your contributions to employer-sponsored retirement or medical expense accounts.

• The proposed changes to federal tax code conformity in Oregon are a good example of a change that could significantly reshape the state’s tax code in the future, despite being framed as temporary technical adjustments.
• Each marginal rate only applies to earnings within the applicable marginal tax bracket.
• Residents of Portland should also factor in the city’s $35 arts tax, which applies to many adult residents.
• Oregon’s state income tax brackets range from 4.75% to 9.9%, depending on your income and filing status.
• If approved for the program, you will borrow money from the State of Oregon to pay your county property taxes.
• Oregon had about 75,000 taxpayers in the state’s top income tax bracket in 2020, according to state data, triple the number in 2010.

That means capital gains can be taxed at a rate as high as 9.9%, depending on your total income. The Tax tables below include the tax rates, thresholds and allowances included in the Oregon Tax Calculator 2024. The corporate excise and income tax is the second largest source of state tax revenue. This is expected to account for 11% of the state’s General Fund for the 2023–25 biennium.