Oregon reports 27.6% drop in individual income tax collections in 2024 compared to previous year
Oregon experienced a significant decline in individual income tax revenue during 2024, according to newly released data from the U.S. Census Bureau’s Annual Survey of State Government Tax Collections.
The report shows that Oregon collected approximately $9.54 billion in individual income taxes in 2024, down sharply from $13.17 billion collected in 2023. The decrease represents a 27.6% decline year over year, making it one of the most notable changes among the state’s major revenue sources.
Despite the drop in income tax collections, Oregon’s overall tax revenue remained substantial. The state collected roughly $17.2 billion across all tax categories in 2024, with individual income taxes continuing to account for the largest share of total revenue.
Income Taxes Remain Oregon’s Largest Revenue Source
Individual income taxes generated more revenue than any other tax category in Oregon during 2024. Even after the significant decline, the category contributed more than half of the state’s total tax collections.
Income tax revenue is often influenced by economic conditions, employment levels, investment income, capital gains, and taxpayer refunds. Large year-to-year swings can occur depending on economic performance and tax policy changes.
The decline of more than $3.6 billion compared to the previous year highlights how dependent Oregon’s budget remains on personal income tax collections.
Other Major Tax Categories Show Mixed Results
While individual income tax revenue fell sharply, several other tax categories either remained stable or posted modest gains.
Selective sales and gross receipts taxes generated approximately $2.88 billion in 2024, slightly lower than the $2.92 billion collected in 2023.
Corporate net income taxes increased from about $1.62 billion to $1.69 billion, providing one of the stronger areas of growth among major tax categories.
General sales and gross receipts taxes also showed a small increase, rising from $1.34 billion in 2023 to nearly $1.34 billion in 2024.
Motor fuel taxes, motor vehicle license taxes, and occupation and business license taxes all recorded moderate year-over-year increases.
Tobacco Tax Revenue Continues to Decline
One notable decrease outside of individual income taxes was tobacco product tax revenue.
The state collected approximately $377.5 million from tobacco taxes in 2024, compared with $414.9 million in 2023. The decline reflects a continuing trend seen in many states as tobacco consumption decreases over time.
Hunting and fishing license tax revenue also dropped, falling from $64.5 million in 2023 to $55.4 million in 2024.
Areas Showing Revenue Growth
Several categories posted noticeable gains during the year.
Estate and gift tax collections increased from roughly $297.6 million to $340 million.
Insurance premium taxes rose from $173.7 million to $187.1 million.
Alcoholic beverage sales taxes increased from $19.2 million to $22.5 million, while severance taxes climbed from $16.6 million to $20.4 million.
Corporate license taxes and public utility sales taxes also reported year-over-year growth.
State Revenue Remains Strong Overall
Although Oregon’s individual income tax collections fell significantly, the state’s tax system continued to generate billions of dollars in revenue through a diverse mix of tax sources.
According to the U.S. Census Bureau, state tax collections nationwide totaled nearly $1.5 trillion in 2024. These revenues help fund essential government services including education, transportation infrastructure, public safety, healthcare programs, and other state operations.
The latest figures demonstrate both the importance of individual income taxes to Oregon’s finances and the role that other tax categories play in supporting state revenue when major sources experience fluctuations.
Officials and economists will likely continue monitoring tax collection trends as they evaluate Oregon’s fiscal outlook and future budget planning efforts.
