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Portland Metro Tax Year-End Update

Metro Supportive Housing Services Tax and Multnomah County Preschool for All Tax

In 2020, voters approved the institution of two new taxes: The Metro Supportive Housing Services tax and Multnomah County Preschool for All tax. Both resulted in new local personal income taxes that became effective January 1, 2021. As of January 1, 2022, all employers must comply with the withholding requirements.

The Metro Supportive Housing Services Personal Income Tax

1% on taxable income for residents of, or income sourced in, the Portland Metro District above $125,000 for those filing single or married filing separately and $200,000 for those filing jointly, qualified widower, or head of household.

The Multnomah County Preschool for All Personal Income Tax

1.5% on taxable income for residents of, or income sourced in, Multnomah County above $125,000 for those filing single or married filing separately and $200,000 for those filing jointly, qualified widower, or head of household. An additional 1.5% will be withheld on taxable income over $250,000 for individuals and $400,000 for those filing jointly.

Payroll withholdings by employers within these jurisdictions are required beginning January of 2022. In calendar year 2021, withholdings were voluntary and not required. For employees and businesses, tax may be paid with the 2021 tax return without underpayment penalties if withholding was not available.

  • Employees earning $200,000 or more annually, payroll withholding will be automatic unless an employee submits an Opt-In/Out form indicating they want to opt-out.
  • Employees earning less than $200,000 will NOT be set up for this withholding. To opt-in to have this tax withheld, an Opt-In/Out form must be submitted.

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If you have questions, please reach out to your Perkins team for help!