SB1081 • 2025

Exempts from Oregon personal income taxation a taxpayer with Oregon adjusted gross income that is equal to or less than 120 percent of the median Oregon adjusted gross income.

Taxes

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor: Senator Anderson
Last action: 2025-06-27
Official status: In Senate Committee
Effective date: Not listed

Plain English Breakdown

Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.

Exempts from Oregon personal income taxation a taxpayer with Oregon adjusted gross income that is equal to or less than 120 percent of the median Oregon adjusted gross income.

Digest: The Act says that a taxpayer with income equal to or less than 120 percent of the state median income does not pay state income tax.

What This Bill Does

Digest: The Act says that a taxpayer with income equal to or less than 120 percent of the state median income does not pay state income tax.
(Flesch Readability Score: 60.0).
Exempts from Oregon personal income taxation a taxpayer with Oregon adjusted gross income that is equal to or less than 120 percent of the median Oregon adjusted gross income.
Applies to tax years beginning on or after January 1, 2026, and before January 1, 2032.

Limits and Unknowns

This entry is temporarily using official source text because the generated explanation could not be confirmed against the official bill text during the last sync.

Bill History

2025-06-27 Senate
In committee upon adjournment.
2025-02-25 Senate
Introduction and first reading. Referred to President's desk.
2025-02-25 Senate
Referred to Finance and Revenue.

Official Summary Text

Digest: The Act says that a taxpayer with income equal to or less than 120 percent of the state median income does not pay state income tax. (Flesch Readability Score: 60.0).
Exempts from Oregon personal income taxation a taxpayer with Oregon adjusted gross income that is equal to or less than 120 percent of the median Oregon adjusted gross income.
Applies to tax years beginning on or after January 1, 2026, and before January 1, 2032.
Takes effect on the 91st day following adjournment sine die.
Relating to: Relating to exempting taxpayers with certain incomes from personal income tax; prescribing an effective date.
Current location: In Senate Committee

Current Bill Text

Read the full stored bill text

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83rd OREGON LEGISLATIVE ASSEMBLY--2025 Regular Session
Senate Bill 1081
Sponsored by Senator ANDERSON
SUMMARY
The following summary is not prepared by the sponsors of the measure and is not a part of the body thereof subject
to consideration by the Legislative Assembly. It is an editor’s brief statement of the essential features of the
measure as introduced. The statement includes a measure digest written in compliance with applicable readability
standards.
Digest: The Act says that a taxpayer with income equal to or less than 120 percent of the state
median income does not pay state income tax. (Flesch Readability Score: 60.0).
Exempts from Oregon personal income taxation a taxpayer with Oregon adjusted gross income
that is equal to or less than 120 percent of the median Oregon adjusted gross income.
Applies to tax years beginning on or after January 1, 2026, and before January 1, 2032.
Takes effect on the 91st day following adjournment sine die.
A BILL FOR AN ACT
Relating to exempting taxpayers with certain incomes from personal income tax; and prescribing an
effective date.
Be It Enacted by the People of the State of Oregon:
SECTION 1.
Section 2 of this 2025 Act is added to and made a part of ORS chapter 316.
SECTION 2. A taxpayer shall be exempt from the tax imposed under this chapter if the
taxpayer has Oregon adjusted gross income that is equal to or less than 120 percent of the
median Oregon adjusted gross income for all taxpayers filing the type of return filed, as de-
termined by the Department of Revenue for tax years ending in the immediately preceding
calendar year.
SECTION 3. Section 2 of this 2025 Act applies to tax years beginning on or after January
1, 2026, and before January 1, 2032.
SECTION 4. This 2025 Act takes effect on the 91st day after the date on which the 2025
regular session of the Eighty-third Legislative Assembly adjourns sine die.
NOTE: Matter in boldfaced type in an amended section is new; matter [ italic and bracketed] is existing law to be omitted.
New sections are in boldfaced type.
LC 3907