Springfield, OR Local Payroll Tax

At A Glance

• Effective January 1, 2027, Springfield, Oregon, employees and employers will be required to make payroll contributions for a new local payroll tax.
• The contribution rate is set at 0.1% of covered wages, paid by both employers and employees. Covered wages are the portion of an employee’s wages that are subject to taxation. 

Summary

On June 1, 2026, the Springfield City Council adopted a new payroll tax ordinance to address the city’s general fund structural imbalance. Beginning January 1, 2027, employers with a physical presence within Springfield city limits and employees working for a Springfield-based employer will be subject to the Springfield payroll tax.

The tax rate applies to wages earned while working for a Springfield-based employer. The tax rate contribution requirements will be as follows:

• Employers must pay 0.1% of covered wages paid to their employees.
• Employees must pay 0.1% of their covered wages.

Employees are only subject to the tax if they perform work within the Springfield city limits. Springfield residents who work for an employer located outside of Springfield city limits are not subject to this tax. 

If an employer operates both inside and outside Springfield city limits, only wages earned for work performed inside the city limits are subject to this tax.