Taxes and Incentives for Hillsboro Businesses

Fewer Taxes

Hillsboro is not subject to some of the typical taxes applicable to businesses in other cities or states.

• No sales tax
• No inventory tax
• No worldwide unitary tax
• No motor vehicle tax
• No business income tax (City or County)
• No direct levies on intangible properties

Current Tax Rates

The current property tax rate for industrial areas is approximately $17 per $1,000 of taxable assessed value, and property tax rates are limited to 1.5 percent of real market value (excluding bonds or levies).

Other Tax Considerations

• Personal income tax
  5 to 7 percent on annual income greater than $3,550 (single) or $7,100 (joint)
  9 percent on annual income greater than $8,900 (single) or $17,800 (joint)
  9.9 percent on annual income greater than $125,000 (single) or $250,000 (joint)
• Corporate income tax
  Single Sales Factor - applies only to income received on goods and services sold within Oregon
  6.6 percent rate applies to taxable income up to and including $1 million
  7.6 percent rate applies to taxable income over $1 million
• Corporate activity tax (DOR FAQ)
  $250 plus 0.57 percent rate applies to Oregon taxable commercial activity in excess of $1 million

In Comparison

According to the Tax Foundation, a non-partisan research institution, Oregon ranks 15th in the 2021 State Business Tax Climate Index. Compared to its most common competitors, Oregon’s corporate income tax rate and business property tax rates are often lower—in some cases significantly so.

Additional Tax Information

Financial Incentive Programs

Hillsboro offers a range of financial incentive programs to businesses:

Questions?

Contact our Economic Development Supervisor, Val Okada, for more information.