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Multnomah County Preschool for All Income Tax

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The Revenue Division will be administering Multnomah County's Preschool For All (PFA) Personal Income Tax program. This page will be updated with new information for this program.

On November 3, 2020, Multnomah County voters approved a measure to establish a tuition-free preschool program. This program is funded by a personal income tax, which went into effect January 1, 2021.

The personal income tax is 1.5% on taxable income over $125,000 for individuals and $200,000 for joint filers, and an additional 1.5% on taxable income over $250,000 for individuals and $400,000 for joint filers. The rate will increase by 0.8% in 2026.

Employers are required to offer in writing to withhold for employees as soon as their payroll system is capable in 2021. Withholding is mandatory in 2022. Employees may elect to opt in or out of withholding based on their individual tax situation. Employers should automatically withhold for employees making over $200,000 per year, unless the employee has opted out of withholding.

Next Steps

In April 2021, you will be able to remit payroll withholding and/or make quarterly estimated payments to Portland’s Revenue Division. Annual returns are due beginning April 15, 2022. Please see Multnomah County’s Preschool for All website for more information about these new taxes, including tax codes and frequently asked questions.