The state assembly has made the following changes to 2026 Oregon tax returns:
What is the new standard deduction?
2026 Oregon standard deduction amounts:
- Married filing jointly: $5,820
- Head of household: $4,685
- Single: $2,910
- Married filing separately: $2,910
What's new for adjustments/deductions?
- Starting in tax year 2026, you may not claim the federal passenger vehicle loan interest deduction on your Oregon return.
- The 2026 federal tax subtraction limit is $8,750 ($4,375 for married filing separately). It may be limited further based on your adjusted gross income (AGI).
- Starting in tax year 2026, you must add back any deduction under IRC 168(k) for the special depreciation allowance.
What's new for additions to income?
- Starting in tax year 2026, you must add back any gain excluded on your federal return from the sale of qualified small business stock.
Additional Information
- Federal return. When you file your Oregon return, you must include a copy of your federal Form 1040, 1040-SR, or 1040-NR with Schedules 1 through 3 (if applicable), or Form 1040-X if you're filing an amended return. Items on your Oregon return may be adjusted or denied if your federal return isn't included.
- Oregon Instruction