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Summary of 1995 Personal Income Taxes
The personal income tax is the state of Oregon´s largest source of revenue, accounting for 82.2 percent of General Fund revenues in fiscal year 1995-96. The information provided here is taken from the annual publication titled Oregon Personal Income Tax Annual Statistics and provides a summary of personal income taxes for 1995. For a flowchart depicting the components of the Oregon personal income tax click here.
 
Highlights of 1995
  • The Oregon Department of Revenue received 1.47 million 1995 personal income tax returns, a 3.2 percent increase from 1994.
  • Total personal income, taxable and non taxable, of Oregonians rose 7.8 percent to almost $68 billion. Tax due was 4.0 percent of personal income.
  • The total adjusted gross income of Oregon filers was $48.2 billion in 1995, up 8.9 percent from 1994. For full-year residents, adjusted gross income was $45.1 billion, up 8.6 percent from 1994.
  • The total taxable income of Oregonians was $37.9 billion in 1995 versus $34.9 billion in 1994.
  • Personal income tax revenue from 1995 returns totaled $2.7 billion, up 16.6 percent over 1994.
  • The average tax liability was $1,873, up from $1,659 in 1994. Excluding the surplus refund, the average tax liability in 1994 was $1,775.
  • The effective tax rate increased 7 percent between 1994 (5.3 percent) and 1995 (5.7 percent).
  • The average adjusted gross income of full-year residents rose 5.7 percent to $34,632. Over the same period the Portland Consumer Price Index rose 2.9 percent.
  • Among the fastest growing components of income were interest and dividends, up 21 percent, pension income, and rent, partnership, and S-corporation income, each up 11 percent from 1994.
 
Pit Graph
 
Income Tax and Other Economic Indicators
 
For the 1995 tax year, nearly 1.5 million tax returns were filed; 89 percent were from full-year residents while the remaining 11 percent were from part-year and non-resident filers. In total, all filers reported $48.2 billion in adjusted gross income (AGI) and $37.9 billion in taxable income. The resulting tax revenue for the state was just over $2.7 billion. This income tax revenue was $390.5 million higher than in 1994. Including the $157.5 million surplus refund returned to 1994 taxpayers, 1995 personal income tax revenue increased $233 million.
 
For the 1.3 million full-year returns, a total of $45.1 billion in AGI was reported for an average of approximately $34,600. The average AGI increased 56 percent between 1986 and 1995 from $22,148 to $34,632. During the same time period the Portland Consumer Price Index rose 42 percent. The 1995 tax revenue for the state from these filers was $2.6 billion (94 percent of the total) with an average liability of just under $2,000 per return.
 
Oregon´s population, as estimated by the Center for Population Research and Census at Portland State University, grew 1.6 percent in 1995. Between 1994 and 1995 the number of Oregon tax returns filed increased 3.2 percent. During the prior decade (1986-1995), Oregon´s population grew nearly 18 percent while the number of filers grew approximately 31 percent. Nonagricultural employment grew by four percent in 1995.
 
Total Oregon income tax was four percent of personal income in 1995 versus 3.7 percent in 1994; however, without the surplus refund in 1994, tax due would have been four percent of personal income. From 1986 to 1995, the percent of personal income devoted to tax grew from 3.5 percent to 4 percent. Personal income includes income from both taxable and nontaxable sources. For a historical table of personal income tax data and other economic indicators click here.
 
Sources of Income
 
Wages, salaries, and tips are the primary sources of income for Oregon taxpayers, comprising 68.8 percent of AGI in 1995. The next largest sources of AGI are taxable pensions (7.9 percent) and taxable dividends and interest (6.5 percent). There are also two negative components AGI: net farm income and adjustments (IRA deductions, moving expenses, etc.). Together, they reduced total AGI by roughly 1.5 percent.
 
While the top three sources of income have remained the same over the decade of 1986 to 1995, their relative sizes have changed and their combined share fell from 94 percent to 83 percent. The share of AGI from wages, salaries, and tips fell substantially from 78 to 69 percent. (Part of the drop is a result of a reporting change in 1987 that transferred income previously reported as wages to the "Other" category.) Dividends and interest declined from 10.3 percent AGI in 1986 to 6.5 percent in 1995; pensions rose from 5.8 to 7.9 percent. The largest gain in share is due to rent, partnerships, and S corporations which increased from 0.8 percent to 5.1 percent. For a table on sources of income for 1986 to 1995 click here.
 
County Data
 
Across all counties, the number of returns filed ranged from 639 in Wheeler to 291,721 in Multnomah county. These counties also had the lowest and highest total AGI and total tax due, respectively. Washington county had the highest average AGI and average tax due while Wheeler county had the lowest average AGI and Harney county had the lowest average tax due.
The three counties forming the Portland metropolitan area - Multnomah, Washington, and Clackamas - filed 40 percent of the tax returns, reported 47.4 percent of AGI and 49.6 percent of the total tax due. The Willamette Valley, com-prised of Lane, Linn, Benton, Polk, Marion, and Yamhill counties, accounts for an additional 24.3 percent of returns filed, 23.6 percent of AGI, and 23.1 percent of tax due. For county and area detail on the number of returns, total and average AGI, and total and average tax due click here.

1995
Tax rate
charts
Tax rate chart A:
For persons filing Single, or Married filing separately
If your taxable income is:
Not over $2,150
Over $2,150 but not over $5,400
Over $5,400
Your tax is:
5% of taxable income
$108 plus 7% of excess over $2,150
$335 plus 9% of excess over $5,400
Tax rate chart B:
For persons filing Jointly, Head of household,
or Qualifying widow(er) with dependent child
If your taxable income is:
Not over $4,300
Over $4,300 but not over $10,800
Over $10,800
Your tax is:
5% of taxable income
$215 plus 7% of excess over $4,300
$670 plus 9% of excess over $10,800