Oregon sits in the western US, in the Pacific Northwest. The state covers 250,000 km² and is home to just over 4.2 million people. The northwest of the Beaver State is the most densely populated part, and it is where you find the three largest cities: Portland, Eugene and the capital, Salem.
Oregonians like to believe there is something special about their state: a breathtaking public coastline, majestic mountain peaks and world-class breweries. The economy is just as remarkable. Alongside a diverse manufacturing base, high-tech hardware, software development, food processing and outdoor gear are all showing significant growth.
Competitive costs
The tax environment is very attractive, and businesses face low taxes. The effective tax rate is 3.3 percent, which has ranked among the five lowest in the country in each of the past five years. Oregon has no sales tax, and corporate tax is only due on the share of profit attributed to Oregon.
On top of that, the state offers competitive incentives such as property tax relief and income tax credits, all designed to help businesses expand.
Oregon also scores on industrial electricity costs. At under six cents per kilowatt hour, the price is less than half of what you pay in California. Part of the reason is that the Beaver State can generate power from hydroelectricity.
Industrial strength
Oregon's diverse industries deliver record employment and the second-best growth in GDP and personal income in the entire country. The manufacturing base is complemented by a well-paid creative sector. The Beaver State ranks sixth in the nation for patents per worker and ninth for business spending on research and development.
Oregon is in the middle of a tech boom, with both hardware and software growing fast. The software industry is 2.5 times more concentrated in Oregon than in other states. Oregonians make silicon chips, for example, and the thriving high-tech industry is anchored by Intel's largest facility in the world.
The fast-growing aerospace industry and the unmanned aircraft systems sector are on the rise too, led by companies such as Precision Castparts, Boeing and Cloudcap Technologies.
Oregon is a leader in food processing, with literally tons of local berries, hazelnuts and wheat turned into countless products by ConAgra, Amy's Kitchen, Diamond Foods and hundreds of other food processors, then shipped all over the world.
The Pacific coast advantage
Oregon's ideal location on the Pacific coast gives easy access between markets in the US, Asia and Europe. A large and varied range of transport and logistics companies offer direct international cargo and passenger flights, container services, intermodal rail and road transport, warehousing, transshipment and related services. Portland International Airport was voted the best airport in the US by Travel + Leisure four years in a row.
Costs are very competitive for businesses, yet it is often advantages like access to the Pacific, the quality of the workforce and the enviable quality of life that make the difference.
Income tax in Oregon
Oregon levies an income tax of 4.75 to 9.9%, depending on income. On top of that, you pay federal income tax.
Corporate tax in Oregon
Oregon levies a corporate tax of 6.6%; the share of profit above $1 million is taxed at 7.6%. On top of that, you pay federal corporate tax.
Sales tax in Oregon
The US has no European-style VAT. Instead, states, counties and municipalities levy a local sales tax on sales of goods (but not services).
Sales tax rate in Oregon
Oregon has no sales tax.
For an overview of every state, see our directory US states at a glance. Our guide Which US state is best for your company? helps you pick the right state, and the guide to forming a US company walks you through the process. And if you want to run your US LLC tax-free without a US permanent establishment, our sister site zerotax.llc is the place to go.
Our services for Oregon:
You can form your company with us in six states; our overview of US company formation shows you which one suits your plans in Oregon. Any open questions we answer in a consultation.