taxbetween

Portland's Metro housing tax indexes its thresholds for the first time

The 1% Supportive Housing Services tax now starts at $128,000 for a single filer instead of $125,000, and will move every year. Multnomah County's preschool tax rises in 2027.

The Metro Supportive Housing Services (SHS) personal income tax has charged 1% above $125,000 of taxable income for a single filer, and $200,000 filing jointly, since it began in 2021. Those thresholds never moved — so five years of wage growth pulled more people into the tax without a vote being taken.

That stops in 2026. The Revenue Division’s own wording: “Beginning in tax year 2026, these income exemption thresholds will be adjusted annually for inflation to prevent taxpayers from moving into higher brackets solely due to rising living costs.”

Filing status 2021–2025 2026
Single $125,000 $128,000
Joint $200,000 $205,000

The tax applies across the parts of Clackamas, Multnomah and Washington counties inside Metro’s district, and reaches people who work there as well as those who live there.

Multnomah County’s Preschool for All tax is moving the other way. It charges 1.5% above $125,000 single or $200,000 joint, and 3% in total above $250,000 or $400,000 — and from January 1, 2027 both rates rise by 0.8 points, to 2.3% and 3.8%. Its thresholds are not indexed.

For a Multnomah County resident the combined marginal rate above those lines is Oregon’s 9.9% plus 1.5% plus 1% — 12.4% today, and 13.2% once the 2027 increase lands. Neither tax is included in the take-home figures on this site, because both depend on exactly where you live and work.

Source:City of Portland Revenue Division

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