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Personal Income Tax Withholding Information for Employers/Payroll Providers

Information
Information for employers and payroll providers about the withholding requirements for Metro’s Supportive Housing Services (SHS) and Multnomah County’s Preschool For All (PFA) personal income taxes. The Revenue Division administers these taxes on behalf of Metro and Multnomah County.
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Overview: SHS and PFA Personal Income Tax

Metro Supportive Housing Services (SHS) Personal Income Tax

In 2020, voters in greater Portland approved a measure to raise money for supportive housing services for people experiencing homelessness or at risk of experiencing homelessness.

The program is funded by two separate taxes: a 1% personal income tax on taxable income above $125,000 for individuals and $200,000 for those filing jointly, and a 1% business income tax on net income for businesses with gross receipts above $5 million. 

For more information visit Oregon Metro's SHS website.

Multnomah County Preschool For All (PFA) Personal Income Tax

In 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 rate 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.

For more information, visit Multnomah County's PFA website.


Withholding Requirements

Metro SHS Personal Income Tax

For calendar year 2021, payroll withholding is not required. However, an employer must offer in writing to withhold the Metro personal income tax from employees’ wages as soon as the employer’s payroll system(s) are able to process the withholding. Metro understands the challenge of this transition and will not assess penalties if the withholding is not available in 2021.

Beginning calendar year 2022, employers with a Metro location are required to withhold this tax from employees that work within Metro and earn $200,000 or more during the calendar year. Income above $200,000 will be withheld at a rate of 1%.

An employee may use the Metro OPT Form to elect in or out of withholding, or to designate a different withholding amount, based on their tax situation.

For more information, including the complete tax codes and opt-in/opt-out forms, and written notification templates, visit Oregon Metro's SHS website.

Multnomah County PFA Personal Income Tax

Multnomah County employers are required to withhold on behalf of employees for the Preschool For All Personal Income Tax. 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.

Employers should automatically withhold for employees making over $200,000 per year. Income above $200,000 will be withheld at a rate of 1.5%. Income above $400,000 will be withheld at a rate of 3%. View Multnomah County's PFA withholding calculator

Employees may elect to opt in or out of withholding based on their individual tax situation.

For more information, including the complete tax codes, opt-in/opt-out forms, and written notification templates, visit Multnomah County's PFA website.


Filing Requirements

Employers and payroll service providers must file quarterly returns and annual reconciliation returns for the Metro Supporting Housing Services (SHS) and Multnomah County Preschool For All (PFA) withholding tax programs with the City of Portland's Revenue Division.

Reporting due dates are the same as those for Oregon employer reports:

Filing Due Dates for Quarterly Returns
QuarterQuarter Ending DateReturn Due Date 
1st (January through March)March 31April 30
2nd (April through June)June 30July 31
3rd (July through September)September 30October 31
4th (October through December)December 31January 31, subsequent year 
Filing Due Dates for Annual Returns
YearYear Ending DateReturn Due Date
January through DecemberDecember 31January 31, subsequent year 

Bulk XML File Information

Employers and payroll service providers who are filing returns for more than 25 employees must file returns in bulk via XML upload.

To request the XML file template, please email EmployerWithholding@portlandoregon.gov.


Remitting Payments

Employers and payroll service providers must submit SHS and PFA personal income tax withholding payments to the Revenue Division. Payment due dates are the same as the dates for depositing federal and State of Oregon withholding tax liabilities. For more details, please see Oregon Metro's SHS website and Multnomah County's PFA website.

Contact

Employer Withholding Tax Help

Revenue Division

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