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Oregon Statewide Transit Tax 2026 Increase Delayed
January 05, 2026
At A Glance
The Oregon Department of Revenue (DOR) has postponed the implementation of the planned increase to the Statewide Transit Tax, originally set to begin on January 1, 2026.
Summary
Oregon previously enacted HB 3991 which would have raised the Statewide Transit Tax to 0.2% effective, January 1, 2026. Following a special legislative session, petitioners began an Initiative Petition to refer HB 3991 to Oregon voters. On December 12, 2025, the petition signatures were submitted to the Oregon Secretary of State for validation.
The Oregon DOR is, therefore, pausing the rate increase's implementation while signatures are validated.
Next Steps
Paylocity will continue to monitor developments and provide updates as new information becomes available.
Thank you for choosing Paylocity as your valued service partner. This information is provided as a courtesy, may change, and is not intended as legal or tax guidance. Employers with questions or concerns outside the scope of a Payroll Service Provider are encouraged to seek the advice of a qualified CPA, Tax Attorney, or Advisor.
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