Quick Answer
The Portland Metro tax is a 0.7526% tax on earned income over $125,000 for individuals (or $200,000 for joint filers) who work in the Portland metro area. Someone earning $150,000 pays about $188 annually in Metro tax.
Best Answer
Sarah Chen, Payroll Tax Analyst
Best for W-2 employees working in Portland metro who want to understand this paycheck deduction
What is the Portland Metro tax
The Portland Metro tax is a 0.7526% tax on earned income that exceeds certain thresholds, paid by people who work in the Portland metropolitan area. This tax funds public transportation and regional services managed by Metro, the regional government.
According to Metro's enabling legislation, the tax applies only to income above $125,000 for individuals ($200,000 for married filing jointly). This means most workers don't pay anything, and high earners only pay on the amount above the threshold.
Example: $150,000 salary with Metro tax
Here's how the Metro tax works for someone earning $150,000:
If you're married filing jointly and your household income is $220,000:
Who pays the Portland Metro tax
You owe Metro tax if:
The tax applies to these counties:
Key point: It's based on where you WORK, not where you live. If you live in Vancouver, WA but work in Portland, OR, you still pay the Metro tax.
Metro tax thresholds and rates
*Tax caps at these income levels due to Social Security wage base limits
**Assumes income subject to payroll taxes
How it appears on your paystub
Look for these labels on your paystub:
Your employer automatically calculates this based on your work location and year-to-date earnings.
What the Metro tax funds
The tax revenue supports:
What you should do
Use our paycheck calculator to see how the Metro tax affects your take-home pay. The calculator accounts for the income threshold, so you'll see $0 Metro tax if you earn under $125,000.
If you work remotely for a Portland-based company but live and work outside the metro area, check with your employer — you may not owe the tax.
Key takeaway: The Portland Metro tax only applies to income above $125,000 for individuals working in the metro area, costing high earners roughly $150-450 annually at typical income levels.
Key Takeaway: The Portland Metro tax only applies to income above $125,000 for individuals working in the metro area, costing high earners roughly $150-450 annually.
Portland Metro tax by income level and filing status
| Annual Income | Single Filer | Married Joint | Annual Metro Tax |
|---|---|---|---|
| $100,000 | $0 | $0 | $0 |
| $125,000 | $0 | $0 | $0 |
| $150,000 | $188 | $0 | $188 (single only) |
| $200,000 | $565 | $0 | $565 (single only) |
| $250,000 | $941 | $376 | Varies by filing status |
More Perspectives
Sarah Chen, Payroll Tax Analyst
Best for people who recently moved to the Portland area or changed jobs and are encountering Metro tax for the first time
Metro tax for new Portland area workers
If you recently moved to the Portland metro area or started a new job here, the Metro tax only applies to income earned while working in the metro counties (Clackamas, Multnomah, Washington). This creates some unique situations for mid-year job changes.
Started Portland job in July, earning $140,000 annually:
Moved FROM Portland in September, earning $160,000:
Remote work considerations
The Metro tax is based on your work location, which creates questions for remote workers:
Company headquartered in Portland, you work remotely in Salem: Generally no Metro tax owed (you don't work IN the metro area)
Live in Vancouver WA, work in Portland office: You owe Metro tax (work location determines liability)
Split time between Portland office and remote: May owe partial Metro tax based on days worked in the metro area
What to do when starting a Portland job
1. Verify your work location is actually within metro boundaries
2. Estimate your annual income to see if you'll exceed thresholds
3. Check your first paystub to ensure withholding is correct
4. Update withholding if you have multiple jobs or complex income
Remember: The tax is calculated on your total annual income from metro area work, not just your income with one employer.
Key takeaway: New Portland area workers only pay Metro tax on income earned while working in the metro counties, and only if total annual income exceeds $125,000.
Key Takeaway: New Portland area workers only pay Metro tax on income earned while working in the metro counties, and only if total annual income exceeds $125,000.
Sources
- Metro Regional Government - Payroll Tax Information — Official Metro guidance on payroll tax rates, thresholds, and employer responsibilities
- Oregon Department of Revenue - Local Tax Information — State guidance on local transit taxes including Metro tax administration
- IRS Publication 17 — Federal tax guide including state and local tax deduction information
Reviewed by Sarah Chen, Payroll Tax Analyst on February 28, 2026
This content is for educational purposes only and is not a substitute for professional tax advice. Consult a qualified tax professional for advice specific to your situation.