2024 Form OR-W-4, Oregon withholding Instructions, 150-101-402-1

150-101-402-1 (Rev. 10-04-23)

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2024 Form OR-W-4 Instructions

Purpose of this form

Use Form OR-W-4 to tell your employer or other payer how

much Oregon income tax to withhold from your wages or

other periodic income.

Instructions for employer or other payer. Enter the business

name, federal employer identification number (FEIN), and

address in the “Employer use only” section of Form OR-W-

4. Keep the completed form with your records. For more

information and additional instructions, see Publication

150-211-602, W-4 Information for Employers, and the additional

resources listed on page 4.

Complete Form OR-W-4 if:

• You’re starting a new job with an employer who must

withhold Oregon tax from your pay.

• You’re receiving a pension or annuity and the payer must

withhold Oregon tax from each payment.

• You’ve had a recent personal or financial change that

affects your taxes, such as a change in your income, filing

status, or number of dependents.

• You weren’t satisfied with the amount of Oregon tax you

owed or had refunded to you when you filed a recent

return.

• You filed a federal Form W-4 with your employer after

2017 that didn’t specify withholding allowances for

Oregon.

The worksheets in these instructions are designed to help

you estimate the amount of Oregon tax your employer

should withhold from your pay. For a more accurate esti-

mate, use the Oregon Withholding Calculator at www.

oregon.gov/dor before you complete Form OR-W-4.

Pension and annuity withholding. Use Form OR-W-4 to des-

ignate the Oregon withholding from your pension, annuity,

or other periodic payments.

Questions to consider:

• Do you (including your spouse) have more than one job?

• Do you expect your wages or your total income for 2024 to

be more than $100,000 (or $200,000 if you’re married and

will file a joint return with your spouse, or you’re a recent

widow(er)?

• Are you making mid-year changes to your withholding?

• Do you receive pension or annuity payments?

•

Do you live outside Oregon, or did you move to Oregon this

year?

•

Are you a non-U.S. citizen without permanent resident status?

If you answered yes to any of these questions, read

the “Specific information” section in these instruc-

tions before completing the worksheets or Form

OR-W-4. Consider using the online Oregon Withholding

Calculator at www.oregon.gov/dor instead of the work-

sheets for more accurate results.

General information

What is Oregon income tax withholding?

Oregon income tax must be paid during the year as you earn

or receive your income. Employers and certain other pay-

ers are required by law to set aside (withhold) part of your

paycheck or other payment for taxes that they send to the

Department of Revenue on your behalf every time they pay

you. “Withholding” refers to the portion of income that your

employer or other payer holds back from each paycheck or

other payment.

How is the amount of Oregon income tax

withholding determined?

The amount that the employer or other payer must withhold

depends on several things, such as:

• Your income.

• Your marital status.

• The number of children or other dependents you have.

Allowances. Depending on your situation, some of your

income might not be subject to withholding. Each allowance

reduces the amount of income that is withheld from each

payment. The worksheets in these instructions will help you

determine how many allowances you may claim.

Additional withholding. You may want to have more money

withheld from each payment. If you have other income that

isn’t subject to withholding, requesting additional withhold-

ing on Form OR-W-4 may help you avoid owing tax on that

other income when you file your tax return.

You report your marital status, allowances, and any addi-

tional amount you want withheld by completing Form

OR-W-4 and submitting it to your employer or other payer.

They will use this information, along with Publication 150-

206-436, Oregon Withholding Tax Formulas, to withhold a

specific amount each pay period.

What if too much or not enough is withheld?

If you have too much tax withheld, you may have a refund

when you file your tax return. This is money that you

couldn’t use during the year when you might have needed it.

If you have too little tax withheld, you may owe tax when

you file your tax return, plus penalty and interest. This is

money that you might have used during the year but will

need to pay when you file your return after the year ends.

See Publication OR-17 for penalty and interest information.

Why can’t the federal form be used for all

withholding?

Oregon employees used to be able to use federal Form W-4

for both their federal and Oregon withholding. In 2020, the

Internal Revenue Service made some major changes to the

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Form OR-W-4 Instructions

Oregon Withholding Statement

and Exemption Certificate

2024

150-101-402-1 (Rev. 10-04-23)

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2024 Form OR-W-4 Instructions

way that federal withholding is done. They changed Form

W-4 in such a way that it can no longer be used for Oregon

withholding purposes. Similar changes were made to Form

W-4P, for withholding from pensions and annuities, starting

in 2022. You must use Oregon’s Form OR-W-4 instead.

How often does Form OR-W-4 have to be submitted?

Complete and submit a new Form OR-W-4 when you start

a new job and whenever your tax situation changes. This

includes changes in your income, marital status, and number

of dependents.

Note: If you are claiming an exemption from Oregon with-

holding, you must submit a new Form OR-W-4 by February

15 every year if you continue to qualify for exemption. See

the instructions for line 4.

What will happen if no Form OR-W-4 is submitted?

Your employer or other payer will refer to your most recent

withholding form to determine your withholding. If no Form

OR-W-4 has been submitted, they will withhold for Oregon

based upon the following order:

• An Oregon-only version of the federal Form W-4 for a year

prior to 2020, or federal Form W-4P for a year prior to 2022.

• Federal Form W-4 for a year prior to 2020, or Form W-4P

for a year prior to 2022.

• Eight percent of your wages or other income subject to

withholding.

What will happen if the information on the form

is false?

You may be assessed a penalty of $500 if there is no reason-

able basis for the instructions you’re giving your employer

or other payer using Form OR-W-4.

Specific information

Two earners or multiple jobs. See the instructions for Work-

sheet C or use the online withholding calculator if you have

more than one job at a time or will file a joint return with a

working spouse.

Wages or adjusted gross income (AGI)* that exceed the

threshold. Your income level affects your withholding. Do

you expect to have wages or AGI on your 2024 return that

are more than $100,000 (or $200,000 if using the married fil-

ing jointly or the qualifying surviving spouse filing status)?

If so, you may want to request additional withholding.

Consider using the online calculator to determine the correct

amount to put on your Form OR-W-4.

*Helpful tip: AGI. Your AGI is your total income minus

federal adjustments to income. This amount on your 2023

federal Form 1040 may help you estimate your 2024 AGI.

Mid-year changes. If you claimed too many allowances for

the first part of the year, your withholding may not cover

all of your tax when you file your return. Use the online

calculator to determine the additional amount you need

withheld to make up for the shortage. If you don’t change

your withholding, you may owe tax, penalties, and interest

when you file your return. See Publication OR-17 for penalty

and interest information.

Pension or annuity payments. If you’ve opted out of federal

withholding from a pension, annuity, or other periodic pay-

ment, you’re automatically opted out of Oregon withholding

also. If you’re not having tax withheld from this income, you

may be required to make estimated tax payments. See Publi-

cation OR-ESTIMATE to determine the amount of estimated

tax payments you need to make.

If you elect to have Oregon tax withheld from your pension

or annuity payment, where the tax must be withheld at a

certain percentage, you can’t claim allowances on Form

OR-W-4, but you may request additional withholding.

Exemption from withholding. You may be in a situation

where none of your income is subject to Oregon tax. In that

case, your income may be exempt from withholding. The

exemption period depends on the type of income you have.

For wages, the exemption ends on February 15th of the fol-

lowing year. For commercial annuities, employer deferred

compensation plans, and individual retirement plans where

an election to have no withholding may be made, the exemp-

tion ends when you notify the payer in writing that you

revoke the election. See the instructions for line 4.

Part-year and nonresidents. Have you recently moved to

Oregon, or do you live outside the state? If so, you’ll report

your Oregon income and deductions in the Oregon col-

umn of your part-year or nonresident tax return. Use only

the amounts that will be in the Oregon column when you

complete Worksheet B or C, or use the online withholding

calculator for more accurate results.

Non-U.S. citizen without permanent resident status. If all or

a portion of your wages are exempt from federal withhold-

ing, these wages are also completely or partially exempt from

Oregon withholding. Submit federal exemption Form 8233

to your employer to exempt all or part of your wages from

Oregon withholding.

If any portion of your wages is not exempt, submit Form

OR-W-4 to your employer. You may not qualify to claim

certain deductions from your Oregon income, so you will

need to take extra steps to ensure that your withholding is

adequate. Follow the instructions below when completing

Form OR-W-4:

• Line 1. Check the “single” box regardless of your marital

status.

• Line 2. Usually, you should claim -0- withholding allow-

ances. However, if you complete the worksheets, follow

the instructions below.

— Complete Worksheet B using amounts that will be

included in the Oregon column of your return.

— Once you have completed all applicable worksheets,

subtract 1 allowance from the number on line A4, B15,

or C5.

• Line 4. Don’t claim exempt due to “no tax liability” or for

the portion of your wages exempted on federal Form 8233.

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2024 Form OR-W-4 Instructions

Form OR-W-4 line instructions

For the form and all worksheet instructions, terms such

as “pay,” “paycheck,” and “wages” also refer to pensions,

annuities, and other periodic payments, and the word

“employer” also refers to other payers.

Type or clearly print your name, Social Security number

(SSN), and mailing address.

Note. You must enter an SSN. You can’t use an individual

taxpayer identification number (ITIN).

Redetermination check box. If the department issued a

determination letter to your employer specifying the amount

your employer needs to withhold from your wages and you

want to decrease your withholding, you must have a per-

sonal or financial change affecting your tax situation. If you

do, mark the “Redetermination” check box. Provide a copy

to your employer and send a copy with all of the applicable

worksheets filled out to the department at:

ADP OR-W-4 Project

Oregon Department of Revenue

PO Box 14560

Salem, OR 97309

Line 1. If you anticipate using the single, married filing

separately, or head of household filing status when you file

your 2024 return, mark “Single.”

If you anticipate using the married filing jointly or qualify-

ing surviving spouse filing status when you file your 2024

return, mark “Married.” If you meet the married filing jointly

qualifications, but want tax withheld at the higher “single”

rate, mark “Married, but withhold at the higher single rate.”

For the qualifications of each filing status, see federal Publica-

tion 501, Exemptions, Standard Deduction, and Filing Information.

Line 2. Complete all applicable worksheets. Enter the allow-

ances from Worksheet A, line A4, Worksheet B, line B15, or

Worksheet C, line C5.

Line 3. If you choose to have an additional amount withheld

from your pay, enter the amount that you want withheld

from each paycheck. If you completed Worksheet C, line C8

may direct you to claim an additional amount per paycheck.

Line 4. If you’re claiming exemption from withholding, you

must meet one of these requirements:

• Your wages must be exempt from Oregon taxation, or

• You must meet the qualification for having no tax liability.

To claim exemption due to no tax liability, you must meet

both of the following conditions:

• Last year you had the right to a refund of all Oregon tax

withheld because you had no tax liability, and

• This year you expect a refund of all Oregon income tax

withheld because you expect to have no tax liability.

To claim exempt, enter the corresponding code from the

Exemption chart on line 4a. Enter only one exemption code,

even if more than one applies. Write “Exempt” on line 4b.

Note: For wages, exemptions end February 15th of the fol-

lowing year. A new Form OR-W-4 must be completed and

submitted to your employer each year.

Exemption chart

Exemption Code

Air carrier employee A

American Indian enrolled tribal member living and

working in Indian country in Oregon.

Amtrak Act worker C

Casual laborer D

Domestic service worker E

Hydroelectric dam worker at the Bonneville, John Day,

McNary, or The Dalles dam.

Military pay for nonresidents stationed in Oregon and

their spouses, residents stationed outside Oregon, and

service members or spouses treated as nonresidents

for tax purposes.

Minister who is duly ordained, commissioned, or licensed

and performing duties in their ministry or a member of a

religious order performing duties required by their order.

Real estate salesperson under a written contract not

to be treated as an employee.

Waterway worker K

No tax liability. See above for definition. L

Nonresident who expects a refund of all Oregon income

tax withheld because their wages won’t be subject to

Oregon tax.

Sign and date Form OR-W-4. Submit Form OR-W-4 to your

employer. Don’t complete the employer’s information. Keep

the worksheets with your tax records.

Worksheet instructions

Worksheet A—Personal allowances

Note: If your annual wages from this job are more than

$100,000 and you’re marking “Single” or “Married, but with-

hold at the higher single rate” ($200,000 if you’re marking

“Married”), skip Worksheet A and claim zero allowances on

Form OR-W-4.

Line A3. Dependents. Enter the total number of all qualify-

ing children and qualifying relatives you are able to claim

as dependents on your Oregon return. See the “Exemp-

tion credit” section of Publication OR-17 for dependent

qualifications.

Worksheet B—Deductions, adjustments, credits,

and nonwage income

Line B1. If you have large amounts of nonwage income, such

as interest, dividends, or self-employment income, consider

making estimated tax payments. For required payments and

other information, see Publication OR-ESTIMATE. You may

also request additional withholding from each paycheck.

Otherwise, you may owe additional tax when you file your

return, together with interest on any underpayment of

required estimated tax payments.

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2024 Form OR-W-4 Instructions

Line B2. Additions are generally items the federal govern-

ment doesn’t tax but Oregon does. See Publication OR-17

for a list of additions and instructions.

Line B4. Enter your anticipated 2024 Oregon deductions. If

you don’t know your anticipated 2024 deductions, enter the

standard deduction for your anticipated filing status.

The 2024 standard deduction for each filing status is:

• $2,745 for single or married filing separately.

• $4,420 for head of household.

• $5,495 for married filing jointly or qualifying surviving

spouse.

If you qualify for an additional standard deduction amount

because you or your spouse are age 65 or older or blind, and

you don’t plan to itemize your deductions, add the addi-

tional amount to your anticipated deduction amount on line

B4. If you’re married (or a qualifying surviving spouse), the

additional standard deduction is $1,000; for everyone else,

the additional amount is $1,200.

Itemized deductions include items such as medical expenses

that are more than 7 1/2 percent of your AGI, state and local

taxes you paid (limited to $10,000, but don’t include Oregon

income taxes), qualifying home mortgage interest, charitable

contributions, and certain miscellaneous deductions. If you

plan to itemize your deductions, enter your estimated Oregon

itemized deductions. See Schedule OR-A Instructions for

more information.

Line B7. Adjustments to income reduce your gross income,

resulting in AGI on your federal return. See the instructions

for federal Form 1040 and the “Adjustments” section of

Publication OR-17 for more information.

Subtractions are generally items the federal government

taxes but Oregon doesn’t. See Publication OR-17 for a list

of subtractions and instructions. Don’t include your federal

tax subtraction.

Line B10. Divide line B9 by $3,200. Round to one decimal

place. For example, round 4.84 to 4.8 and 4.85 to 4.9. This

calculation converts the amount from line B9 into allowances.

Line B11. Credits reduce the amount of tax you must pay.

Standard and carryfoward credits can reduce your tax to

zero but can’t be refunded to you. Refundable credits can

reduce your tax to zero and also result in a refund of any

remaining amount. See Publication OR-17 for a list of credits

and instructions.

Enter an estimate of the credits you will claim on your 2024

Oregon return. Don’t include your exemption credits.

Line B12. Divide line B11 by $249. Round using one decimal

place. For example, round 4.84 to 4.8 and 4.85 to 4.9. This

calculation converts the amount from B11 into allowances.

Line B13. Add lines B10 and B12. Round to the nearest whole

number that is closer to zero by eliminating the decimal value.

For example, round 4.3 or 4.8 to 4 and round -3.3 or -3.7 to -3.

Example 1. Roger entered -3.1 on line B10. He entered 2.4 on

line B12. He will enter -0- on line B13 (-3.1 + 2.4 = -0.7, which

is rounded to 0).

Line B15. If the result when you add lines B13 and B14 is

less than zero, you may owe tax when you file your return.

Request additional withholding or consider making esti-

mated tax payments to avoid owing tax plus potential

penalties and interest. See Publication OR-ESTIMATE for

information about estimated payments.

Worksheet C—Two earners / multiple jobs

Use Worksheet C if you work more than one job at a time or

you have a working spouse.

Line C5. For your highest paying job, enter the result of

Worksheet C, line C5 on Form OR-W-4, line 2. For all of your

lower paying jobs, claim zero allowances.

Line C8. For your highest paying job, enter the result of

Worksheet C, line C8 on Form OR-W-4, line 3. Round to the

nearest whole dollar. For all of your lower paying jobs, claim

zero as the additional amount to be withheld.

Example 2. Todd is completing this form in January and has

entered $824 on line C7. For his highest paying job, he is paid

every two weeks and has 25 paychecks left for the year. Todd

will enter $33 on line C8 and Form OR-W-4, line 3 ($824 ÷ 25

= $32.96, which is rounded up to the nearest whole dollar).

Additional resources

For additional information, refer to the following publications:

• Publication 150-206-436, Oregon Withholding Tax Formulas.

• Publication OR-17, Oregon Individual Income Tax Guide.

• Publication OR-ESTIMATE, Instructions for Estimated Income Tax.

• Publication 150-211-602, W-4 Information for Employers.

• Federal Pub. 501, Exemptions, Standard Deduction, and Fil-

ing Information.

• Federal Form 2833, Exemption From Withholding on Compensa-

tion for Independent (and Certain Dependent) Personal Services

of a Nonresident Alien Individual.

• Federal Form 1040 Instructions.

Do you have questions or need help?

www.oregon.gov/dor

503-378-4988 or 800-356-4222

questions.dor@ dor.oregon.gov

languages.

150-101-402-1 (Rev. 10-04-23)

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2024 Form OR-W-4 Instructions

Note: If you marked “Single” or “Married, but withhold at higher single rate” and your annual wages for this job will be

more than $100,000 ($200,000 if you marked “Married”), skip lines A1 through A3 and enter 0 on line A4.

A1. Enter “1” for yourself if no one else can claim you as a dependent. Otherwise, enter 0.................... A1.

A2. Enter “1” for your spouse if your spouse isn’t employed. Otherwise, enter 0 ................................... A2.

A3. Enter the number of dependents you will claim on your Oregon tax return ....................................... A3.

A4. Add lines A1 through A3. Enter the result here and follow the instructions below .............................. A4.

Complete all worksheets that apply.

• Worksheet B—Use this worksheet if you plan to do any of the following on your 2024 Oregon return:

o Itemize your Oregon deductions or claim additional standard deduction amounts.

o Claim federal adjustments to income or Oregon additions, subtractions, or credits (other than personal exemption credits).

o Report nonwage income (such as dividends, interest, or self-employment income).

• Worksheet C—Use this worksheet if you (including your spouse) have more than one job and the combined earnings from

all jobs exceed $20,000.

If neither of the above worksheets apply, stop here and enter the number from line A4 on Form OR-W-4, line 2.

Worksheet A—Personal allowances

– Keep this worksheet for your records –

STOP

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2024 Form OR-W-4 Instructions

Use this worksheet if you plan to do any of the following on your 2024 Oregon return:

• Itemize your Oregon deductions or claim additional standard deduction amounts.

• Claim federal adjustments to income or Oregon additions, subtractions, or credits (other than personal exemption credits).

• Report nonwage income (such as dividends, interest, or self-employment income).

Having your most recent Oregon tax return on hand may help you when completing this worksheet.

Don’t use negative numbers unless otherwise instructed. For example, write a $1,000 Oregon subtraction as “$1,000”, not

“($1,000)” or “-$1,000”. For more information, see the instructions for this worksheet starting on page 3.

B1. Enter your estimated 2024 nonwage income (such as dividends or interest) .............B1.

B2. Enter your estimated 2024 Oregon additions ...............................................................B2.

B3. Add lines B1 and B2 .............................................................................................................................B3.

B4. Enter your estimated 2024 Oregon deductions. (See instructions) ..............................B4.

B5. Enter the standard deduction based on your anticipated 2024 filing status: ..............B5.

• Single or Married Filing Separately: $2,745.

• Head of Household: $4,420.

• Married Filing Jointly or Qualifying Surviving Spouse: $5,495.

B6. Line B4 minus line B5. If the result is zero or less, enter 0 ...................................................................B6.

B7. Enter your estimated 2024 federal adjustments to income and Oregon subtractions

(exception—don’t include the federal tax subtraction) ........................................................................B7.

B8. Add lines B6 and B7 .............................................................................................................................B8.

B9. Line B8 minus line B3. If less than zero, enter as a negative amount ..................................................B9.

B10. Line B9 divided by $3,200. Round to one decimal place. If less than zero,

enter as a negative amount.................................................................................................................B10.

B11. Enter your estimated 2024 Oregon standard, carryforward, or refundable

credits (exception—don’t include personal exemption credits) .................................B11.

B12. Divide line B11 by $249. Round to one decimal place .......................................................................B12.

B13. Add lines B10 and B12. If less than zero, enter as a negative amount. Round to

the whole number closest to zero (See instructions) ..........................................................................B13.

B14. Enter the number from Worksheet A, line A4 ....................................................................................B14.

B15. Add lines B13 and B14. If zero or less, enter 0. (See instructions) ..................................................... B15.

If you’re using Worksheet C, enter the result from line B15 on Worksheet C, line C1.

Otherwise, stop here and enter the result from line B15 on Form OR-W-4, line 2.

– Keep this worksheet for your records –

Worksheet B—Deductions, adjustments, credits, and nonwage income

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2024 Form OR-W-4 Instructions

If you (including your spouse) work three or more jobs at one time, consider using the Oregon Withholding Calculator at www.

oregon.gov/dor for a more accurate calculation of your allowances.

If you don’t use the online calculator, use this worksheet to figure the number of allowances to claim on the Form OR-W-4 for your highest

paying job. For the best results, we recommend that you claim allowances only on the Form OR-W-4 you submit for your highest paying

job, and that you claim zero allowances on Form OR-W-4, line 2 for all of your (or your spouse’s) other jobs. Doing so will help prevent

under-withholding. For more information, see the instructions for this worksheet starting on page 4.

Complete this worksheet only if you (including your spouse) have more than one job and the combined earnings from all jobs exceed $20,000.

C1. Enter the number from Worksheet B, line B15. If you didn’t use Worksheet B, enter the

number from Worksheet A, line A4 ..................................................................................................... C1.

C2. Enter the indicated number based on your 2024 anticipated filing status ................... C2.

• Single, Head of Household, or Married Filing Separately: Enter “2”;

however, if two of your jobs individually exceed $40,000, enter “4”.

• Married Filing Jointly or Qualifying Surviving Spouse: Enter “3”; however,

if two of your jobs individually exceed $50,000, enter “6”.

C3. If you (including your spouse) will work three or more jobs at the same time at

any point during the year, enter the indicated number for your 2024 anticipated

filing status. Otherwise, enter 0 .................................................................................... C3.

• Single, Head of Household, or Married Filing Separately: Enter “2”.

• Married Filing Jointly or Qualifying Surviving Spouse: Enter “3”.

C4. Add lines C2 and C3 .............................................................................................................................C4.

C5. Is line C1 less than line C4?

• Yes. Enter 0 on line C5 and on Form OR-W-4, line 2. Continue with lines C6 through C8

to figure the additional withholding amount necessary to avoid owing tax with your return.

• No. Line C1 minus line C4. Enter the result on line C5 (if zero, enter 0) and on Form OR-W-4,

line 2. Don’t complete the rest of this worksheet.. ...........................................................................C5.

C6. Line C4 minus line C1 ...........................................................................................................................C6.

C7. Line C6 multiplied by $249 ...................................................................................................................C7.

C8. Line C7 divided by the number of paychecks remaining in 2024 for the highest paying job and

rounded to the nearest dollar. Enter the result here and on Form OR-W-4, line 3. This is the

additional amount to be withheld from each paycheck ....................................................................... C8.

Reminder: If you’re requesting additional withholding for part of the year, remember to check your withholding again early next year.

– Keep this worksheet for your records –

Worksheet C—Two earners / multiple jobs

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