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The Portland Area’s Local Income Taxes, Explained

Here’s a reminder on all our local taxes due today: The Portland Arts Tax, Metro Supportive Housing Services, and Multnomah County Preschool for All Tax.

The Portland Area’s Local Income Taxes, Explained

Tax season is coming up! In addition to the federal and state taxes everyone pays, there's a number of additional local taxes that are due next month.

Here’s a reminder you may may owe some local taxes too:

🎨 The Portland Arts Tax

Everyone in Portland age 18 years or older who lived some part of the last year in Portland and made at least $1,000 pays this tax. There are exemptions for people who don’t have taxable income; low-income exemptions are also available.

How much: $35 per person

Year voters approved it: 2012

How much it’s generated: $112 million in the program's first 11 years

What it pays for: Mostly it goes to fund art and music teachers at Portland elementary schools, but it also helps to fund local arts nonprofit organizations.

Updates: New City Council President Jamie Dunphy wants to reform the arts tax, maybe charging high-income Portlanders more and instituting a fee on streaming services.

🏠 Metro Supportive Housing Services

Individuals who report $125,000 in income or more have to pay this one. For couples filing jointly, the income threshold is $200,000.

It applies to everyone who lives and works inside the Metro region (within the growth boundary, and not in rural areas; you can check your address if you’re not sure).

How much: 1% on taxable income above $125,000 (or $200,000 for couples)

Year voters approved it: 2020 

How much it’s generated: More than $250 million annually

What it pays for: It’s for helping fund services for people experiencing homelessness or for services to keep people housed.

Updates: The tax is in place till 2030, but last year’s effort to extend it to 2050 was abandoned.

🎒 Multnomah County Preschool for All Tax

The same income bracket as the Metro tax ($125,000 for individuals and $200,000 for couples filing jointly) have to pay up. It applies to anyone who lives or works in Multnomah County.

How much: 1.5% (on income above $125,000 for individuals) and 3% above $200,000

Year voters approved it: 2020

How much it’s generated: Last year, Multnomah County brought in $224 million in revenue — about $60 million more than expected.

What it pays for: It pays for free preschool education for 3- and 4-year-olds in Multnomah County. The program is phasing in, prioritizing children who may need it most.

Update: After first working to repeal the tax, Gov. Tina Kotek is now launching a commission to study taking the effort statewide.