Personal Income Tax Filing and Payment Information
Information about Metro Supportive Housing Services (SHS) Personal Income Tax and Multnomah County Preschool for All (PFA) Personal Income Tax, including requirements for filing personal tax returns and paying personal taxes with the City of Portland's Revenue Division.
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Notice of Debt Letter Explanation (May 2024)
The City of Portland's Revenue Division regularly sends notices to taxpayers for personal income taxes which they administer. If you received a Notice of Debt letter in the month following the filing of your tax return, it is generally due to an adjustment made to that return. The tax year 2023 personal income tax returns were due on April 15, 2024, and notices for adjustments made to returns that were filed on or before this date were generally mailed around May 20, 2024.
Examples of adjustments that would create a Notice of Debt letter would be a penalty and/or interest assessment, a math/calculation error, or a difference in the prepayments reported on the return and the prepayments that have been applied to the taxpayer’s account.
Some taxpayers paid their correctly calculated 2023 tax on or before April 15, 2024, and still received a Notice of Debt letter. This is most likely due to the assessment of interest on underpaid quarterly estimated payments and/or withholding. For taxpayers that owe $1,000 or more for either tax program, quarterly estimated payments are required if the tax liability in the prior tax year is $1,000 or more. Please review the tax payment requirements including their due dates.
For taxpayers that made quarterly payments (or whose employer withheld tax) that were assessed quarterly interest, this could be due to the employer withholding/estimated payments being underpaid, the correct account number or primary filer’s social security number not being used, or the estimated payments not being reported on the correct line of the return.
The interest on underpayment of estimated taxes was not due for tax year 2021 (the first year of the programs) or tax year 2022 (due to the amnesty program offered for that year). The interest is due for the first time for tax year 2023.
All income tax agencies rely upon technology and automation to cost effectively administer collections. Processes and controls exist to review any discrepancies raised by taxpayers, and appropriate system adjustments and resolutions are implemented after thorough review. If you believe that your adjustment was made in error, please contact us and we will work to investigate and resolve the issue. You can email us at SHS.Tax@portlandoregon.gov or PFA.Tax@portlandoregon.gov , or call us at 503-865-4748.
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. This tax went into effect January 1, 2021.
The SHS program is partially funded by a 1% personal income tax. The SHS personal tax is owed by individuals with Metro taxable income above $125,000 if filing single or $200,000 if filing joint who live in Metro (including for only a portion of the year), work in Metro, or have income from Metro sources even if not a resident of Metro. To determine if your address is located in the Metro tax jurisdiction, check your address in the Metro Boundary Address Lookup tool. Revenue is distributed within the portions of Clackamas, Multnomah and Washington counties that are inside Metro’s district.
The City of Portland Revenue Division administers the tax on behalf of Metro. Individuals who are liable for the tax must file a separate Metro SHS personal tax return and pay the tax to the City of Portland Revenue Division to be in compliance with the tax law.
Multnomah County Preschool for All (PFA) Personal Income Tax
In 2020, Multnomah County voters approved a measure to establish a tuition-free preschool program. The Preschool for All program is funded by a personal income tax, which went into effect January 1, 2021.
The personal income tax rate is 1.5% on Multnomah County taxable income over $125,000 for individuals or $200,000 for joint filers, and an additional 1.5% on Multnomah County taxable income over $250,000 for individuals or $400,000 for joint filers. The rate will increase by 0.8% in 2026. The PFA personal tax is owed by individuals with Multnomah County taxable income above $125,000 if filing single or $200,000 if filing joint who live in Multnomah County (including for only a portion of the year), work in Multnomah County, or have income from Multnomah County sources even if not a resident of Multnomah County. To determine if your address is located in the Multnomah County tax jurisdiction, search your address in Portland Maps. If the search results indicate a jurisdiction of Multnomah County, your address is within Multnomah County’s jurisdiction.
The City of Portland Revenue Division administers the tax on behalf of Multnomah County. Individuals who are liable for the tax must file a separate Multnomah County PFA personal tax return and pay the tax to the City of Portland Revenue Division to be in compliance with the tax law.
Payroll Withholding Tax Requirements
Metro Supportive Housing Services (SHS) Personal Income Tax
Starting in January of 2022, Metro employers are required to withhold the tax through payroll deductions for employees who earn more than $200,000 annually or for employees who opt into having the tax withheld. Some employers began withholding the tax in 2021. Your W-2 will indicate that this tax has been withheld in the local tax section under the name “METRO”.
If you would like opt in or out of the SHS withholding tax requirement, contact your employer.
Multnomah County Preschool for All (PFA) Personal Income Tax
Starting in January of 2022, Multnomah County employers are required to withhold the tax through payroll deductions for employees who earn more than $200,000 annually or for employees who opt into having the tax withheld. Some employers began withholding the tax in 2021. Your W-2 will indicate that this tax has been withheld in the local tax section under the name “MULT”.
If you would like opt in or out of the PFA withholding tax requirement, contact your employer.
Personal Income Tax Rates
Metro Supportive Housing Services (SHS) Personal Income Tax
The Metro Supportive Housing Services (SHS) personal income tax rate is 1% on Metro taxable income over $125,000 for individuals and $200,000 for joint filers.
Multnomah County Preschool for All (PFA) Personal Income Tax
The Multnomah County Preschool for All (PFA) personal income tax rate is 1.5% on Multnomah County taxable income over $125,000 for individuals and $200,000 for joint filers, and an additional 1.5% on Multnomah County taxable income over $250,000 for individuals and $400,000 for joint filers. The rate will increase by 0.8% in 2026.
Other Personal Income Taxes
City of Portland Arts Education and Access Fund (Arts Tax)
Each Portland resident age 18 and older that earns income above the federal poverty level and has $1,000 or more income is required to file and pay the Arts Tax. Visit our Arts Tax page for more information about the filing and payment requirements.
Residency Status: Full-Year and Part-Year/Non-Resident Filers
Metro Supportive Housing Services (SHS) Personal Income Tax
If your income is above the $125,000 single filer or $200,000 joint filer taxation threshold, your income subject to the SHS tax includes all income earned during the year while you were a resident of Metro, plus all Metro sourced income earned while you were a nonresident.
You are considered a full-year Metro resident if you lived within Metro for the entire year. You are also considered a full-year Metro resident, even if you lived outside of Metro for a portion of the year, if all of the following are true: you consider Metro as your permanent home; Metro is the center of your financial, social, and family life; and Metro is the place you intend to return after an absence. To determine if your place of residence is located within the Metro tax jurisdiction, utilize Metro’s address lookup tool. Full year residents are required to file Form MET-40 Full Year Resident.
If you were a Metro resident for only a portion of the year or if you were not a resident of Metro during the year but you earned income in Metro or received income from Metro sources, you are required to complete Form MET-40-NP Non-Resident/Part Year Resident. For part-year residents, Metro taxes your income from all sources earned or received while you were a Metro resident. For non-residents, Metro taxes only your income from Metro sources. If you were a part-year resident and also had income from Metro sources while you were a non-resident, Metro taxes the combined total of your part-year and non-resident income.
If you were a non-resident who traveled into Metro to perform work, income from the work done in Metro is taxable. If you were a non-resident employed by a Metro employer but did not travel into Metro to perform work (for example, work was done from a home office in a teleworking arrangement), the income received for that work is not taxable.
Multnomah County Preschool for All (PFA) Personal Income Tax
If your income is above the $125,000 single filer or $200,000 joint filer taxation threshold, your income subject to the PFA tax includes all income earned during the year while you were a resident of Multnomah County, plus all Multnomah County sourced income earned while you were a nonresident.
You are considered a full-year Multnomah County resident if you lived within Multnomah County for the entire year. You are also considered a full-year Multnomah County resident, even if you lived outside of Multnomah County for a portion of the year, if all of the following are true: you consider Multnomah County as your permanent home; Multnomah County is the center of your financial, social, and family life; and Multnomah County is the place you intend to return after an absence. To determine if your address is located in the Multnomah County tax jurisdiction, search your address in Portland Maps to verify the jurisdiction. Full year residents are required to file Form MC-40 Full Year Resident.
If you were a Multnomah County resident for only a portion of the year or if you were not a resident of Multnomah County during the year but you earned income in Multnomah County or received income from Multnomah County sources, you are required to complete Form MC-40-NP Non-Resident/Part Year Resident. For part-year residents, Multnomah County taxes your income from all sources earned or received while you were a Multnomah County resident. For non-residents, Multnomah County taxes only your income from Multnomah County sources. If you were a part-year resident and also had income from Multnomah County sources while you were a non-resident, Multnomah County taxes the combined total of your part-year and non-resident income.
If you were a non-resident who traveled into Multnomah County to perform work, income from the work done in Multnomah County is taxable. If you were a non-resident employed by a Multnomah County employer but did not travel into Multnomah County to perform work (for example, work was done from a home office in a teleworking arrangement), the income received for that work is not taxable.
Personal Income Tax Return Filing Requirements
You must file your personal income tax return(s) and pay your personal income tax liability to the City of Portland's Revenue Division following the same schedule that federal and state income tax returns are due (generally April 15). These taxes are not included on your Oregon tax return and must be filed with and paid to the City of Portland Revenue Division.
Electronic filing is only available for select software programs at this time. Check with your software provider to see if it allows the option for electronic filing. If your software does not provide an option for electronic filing, it may be able to generate a paper return for you to print and submit by mail.
The return(s) you are required to file will depend on your residency status within the jurisdictions. If you are liable for both the Metro SHS tax and the Multnomah County PFA tax and you have the same residency status for both jurisdictions, you do have the option to file a combined Metro SHS/MultCo PFA personal tax return on Portland Revenue Online (PRO).
Metro Supportive Housing Services (SHS) Personal Income Tax
You are required to file a Metro SHS Personal Income Tax return if:
- You are a full-year resident of Metro, and
- your Oregon taxable income is more than $125,000 and you file as “single”, which includes the federal filing statuses of Single and Married filing separately; or
- your Oregon taxable income is more than $200,000 and you file as “joint”, which includes the federal filing statuses of Married filing jointly, Head of household, and Qualifying surviving spouse
- your Metro taxable income is more than $125,000 and you file as “single”, which includes the federal filing statuses of Single and Married filing separately; or
- your Metro taxable income is more than $200,000 and you file as “joint”, which includes the federal filing statuses of Married filing jointly, Head of household, and Qualifying surviving spouse
If you do not meet the criteria listed above, you are not required to file a Metro SHS Personal Income Tax return. However, if your employer has withheld the taxes from your wages, you will be required to file a personal income tax return with the Revenue Division in order to receive a refund of the taxes withheld.
Multnomah County Preschool for All (PFA) Income Tax
You are required to file a Multnomah County PFA Personal Income Tax return if:
- You are a full-year resident of Multnomah County, and
- your Oregon taxable income is more than $125,000 and you file as “single”, which includes the federal filing statuses of Single and Married filing separately; or
- your Oregon taxable income is more than $200,000 and you file as “joint”, which includes the federal filing statuses of Married filing jointly, Head of household, and Qualifying surviving spouse
- your Multnomah County taxable income is more than $125,000 and you file as “single”, which includes the federal filing statuses of Single and Married filing separately; or
- your Multnomah County taxable income is more than $200,000 and you file as “joint”, which includes the federal filing statuses of Married filing jointly, Head of household, and Qualifying surviving spouse
If you do not meet the criteria listed above, you are not required to file a Multnomah County PFA Personal Income Tax return. However, if your employer has withheld taxes from your wages, you will be required to file a personal income tax return with the Revenue Division in order to receive a refund of the taxes withheld.
Requesting an Extension to File
To request a filing extension, you must submit an extension payment by the original return due date for an automatic six-month filing extension. Extension payments may be made online or by mail using a payment voucher. The Revenue Division does not allow an extension of time to pay your tax.
If you do not have an estimated tax balance due but would like to request an extension to file, your federal or state extension will serve as your Metro SHS and/or your Multnomah County PFA Personal Income Tax extension. Check the “Extension Filed” box when you file your personal income tax return(s) and attach a copy of your federal extension or verification of your Oregon extension payment with your return.
NOTE: Even if you file an extension, the tax liability must be paid in full by the original due date otherwise penalties and interest will be assessed.
Paying Your Personal Income Taxes (Quarterly Estimated Payments, Payment Plans)
The payment for your personal income taxes is due at the same time you file and pay your federal and state taxes (generally April 15 for most filers). If you have requested an extension of time to file your tax return, your payment is still due on the original due date. There is no extension to pay your personal income taxes.
Failure to pay the personal income taxes by the original due date will result in late payment penalties and interest. Payments apply first to any penalty accrued, then to interest accrued, then to taxes due.
Quarterly Estimated Payments
A taxfiler must pay quarterly estimated payments or have comparable employer withholding for the Metro SHS Personal Income Tax and/or Multnomah County PFA Personal Income Tax if the current year tax liability for either tax program will be $1,000 or greater, respectively, and the taxfiler's prior year tax liability for that tax program was also $1,000 or greater.
Each quarterly estimated payment must equal 25% or more of the current year's estimated tax liability.
For calendar year filers, quarterly estimated payments are due on:
Quarterly Estimated Payment Due Dates | Quarter | Payment Due Date |
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| 1st Quarter | April 15 |
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| 2nd Quarter | June 15 |
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| 3rd Quarter | September 15 |
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| 4th Quarter | January 15 |
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A taxpayer will be subject to quarterly underpayment interest if they are required to make quarterly estimated payments and by the due date of the 4th quarter payment have not made four quarterly estimated payments of 25% or more of the tax that equal:
- 100% of the prior year liability, or
- 90% of the current year liability
Quarterly underpayment interest is calculated using the interest rate in effect for each quarter that payments are late or less than the amount due.
Payment Plans
The Revenue Division recognizes that at times it may not be possible for a taxpayer to pay their tax liability in full. To encourage payment of all amounts due, the Revenue Division will consider entering into a payment plan agreement to ensure collection. Taxpayers are not eligible for a payment plan if the taxpayer fits into one of the following categories:
- The taxpayer has defaulted on a payment plan with the revenue Division within the last 2 years.
- The taxpayer has been referred to the City Attorney for legal action. They must enter into a confession of judgment instead.
A payment plan may be approved when the taxpayer has no other method of financing this debt (such as a credit card cash advances, home equity loan proceeds, business loans, etc.) The taxpayer must remain in compliance with City and County tax codes during the term of the payment plan.
Payment Plan Requirements
Generally, there is a $25 set up fee for a payment plan. The Revenue Division may discuss payment plan options and give approval to the taxpayer, provided the options meet the criteria established below.
- If you can pay the full amount you owe within 12 months, you can avoid paying the fee to set up the payment plan agreement.
- If a payment plan agreement of more than 24 months is needed, the set-up fee increases to $50 and supervisor approval is needed.
If terms outside these are requested, Revenue Division management will review the proposed alternate terms on a case by case basis.
The payment plan due date is the 10th or the 25th of the month, at least 16 days after the date the payment plan was set up. Interest continues to accrue during the repayment period.
All payments must be made by the due date. Failure to pay any installment of the payment plan by the due date will result in the payment plan being considered in default and any outstanding balance will become immediately payable.
Payments not received within five (5) business days after the due date will be considered late. The Revenue Division will allow one late payment. A second late payment will cause the entire outstanding balance to become immediately due and any penalty waiver granted under the Revenue Division’s penalty assessment policy would be immediately reinstated to the outstanding balance.
Delinquent Taxes
If payment for taxes due nor a protest to increased taxes is timely received, the Revenue Division may assess additional interest and penalties, including civil penalties of $500 per violation of the City and County tax codes. The Revenue Division may also begin collection activity for the balance due for your account.
If the Revenue Division refers your account to a third-party collection agency, additional fees up to 25% of the total balance due may be added to your debt, and you must contact the collection agency about your debt.
If the Revenue Division refers your account to the City Attorney's office, additional court or legal fees may be added to your debt.
Penalties & Interest
You may be subject to penalties for underpaying your tax liability, filing a late personal income tax return, and/or paying your income tax liability after the original due date of the return.
Although there is a late penalty for both failing to file a personal tax return and failing to pay the total tax liability by the original due date of the return, only one of these penalties will be applied if there is a failure of both requirements.
Late penalties will also be applied if an extension has been requested and the return is filed after the extension due date.
For the purposes of penalty calculations, unpaid tax is your tax liability reduced by any payment of tax made before the original due date and any credit against tax that is claimed on the return.
Underpayment Penalty
You may be subject to a penalty for underpaying your tax liability if, by the original due date of the return, timely payments are not made which are either:
- At least 90% of the total tax balance due, or
- 100% of the prior year’s tax liability paid by the original due date.
If you did not satisfy either requirement, you will be charged an underpayment penalty of 5% of the unpaid tax, but not less than $5.
Late Filing Penalty
If you do not file your personal income tax return by the original due date, file an extension with the Revenue Division by the original due date, or include a copy of your federal extension with your return when you file by the extended due date, the following late filing penalties will be applied:
- 5% of the amount of the unpaid tax.
- An additional penalty of 100% of the unpaid tax of all tax years if the failure to file is for three or more consecutive tax years.
Late Payment Penalty
Your personal income tax must be paid by the original due date (generally April 15 for most filers), even if you requested an extension to file your personal tax return. If you do not pay your tax by the original due date, the following late payment penalties will be applied:
- 5% of the amount of the unpaid tax.
- An additional penalty of 100% of the unpaid tax of all tax years if the failure to pay is for three or more consecutive tax years.
Interest on Tax Due
Monthly interest is assessed on tax that remains unpaid after the original return due date until the tax is paid in full.
Quarterly Underpayment Interest
Quarterly underpayment interest will be due if estimated payments were required and were underpaid. Estimated payments can be made through quarterly estimated payments, employer-provided withholding from a filer’s wages, or a combination of both. Your quarterly underpayment interest is calculated at the rate in effect for the tax year from the due date of each quarterly estimated payment to the original due date of the tax return to which the estimated payments apply. The amount of underpayment is determined by comparing the 90% of the current total tax liability amount to quarterly estimated payments made prior to the original due date of the tax return.
There is no interest on underpayment of quarterly estimated payments if:
- The total tax liability of the prior tax year was less than $1,000.
- An amount equal to at least 90% of the total tax liability for the current tax year was paid in accordance with Metro SHS and/or Multnomah County PFA tax code(s); or
- An amount equal to at least 100% of the prior year's total tax liability was paid in accordance with Metro SHS and/or Multnomah County PFA tax code(s).
Refunds
You will need to file a personal tax return to request a refund.
Refunds for the Metro SHS and Multnomah PFA taxes are generally issued within 8-10 weeks after the return is filed (with all supporting tax pages). Due to high volumes of mail, returns filed in March/April and September/October may require additional time for a refund to be issued.
Refunds will be issued only in the event of overpayment, duplicate payments, or a payment made when no tax was due, and a refund was requested on your return. All requests for refund must be made in writing.
An online payment made Monday through Friday may be voided on the same day it is made by canceling the payment before 4 pm Pacific Time.
ACH Refunds
To receive your refund via direct deposit, you must file your return electronically and request a refund on that return using Portland Revenue Online or through an approved eFile vendor.
