Under New Tax Law 3 out of 4 Families with Children Are Projected to Pay More in Oregon Income Tax Than Federal Income Tax.

I recently posted on Twitter an analysis showing that a Oregon family of four with income of $75,000 would pay more in Oregon income taxes than federal income tax under both the existing and the new federal tax law. 

Under the new tax law the federal income tax for this family would decline by 40% and their state income tax would increase by 3%, so in 2018 their state income tax would be 125% more than their federal income tax. The table below shows this data. 

How Frequently Do/Will Oregonians Pay More in State Income Tax Than in Federal Income Tax?

I followed up with state officials after that post to ask how frequently filers in Oregon pay more in state income tax than in federal income tax.

I put the data from the response I received into the graph pasted below; note that data is for full year Oregon filers. 

Observations:

1. The lowest % of filers paying more in Oregon income taxes than federal (37%) was ALL filers under the current tax law. That will increase to 44% under the new tax law.
2. The highest % of filers paying more in Oregon income taxes than federal (77%) will be families with children under the new tax law. Under current tax law 60% of these filers pay more in Oregon income tax than federal.
3. Note that frequency does not show how much more Oregon income taxes are compared to Federal Income taxes.

Originally created and posted on the Oregon Housing Blog.