What is taxable income?
A resident is subject to tax on all items included in total federal income.

Taxable income includes:
Salaries, bonuses, wages, commissions, fees, vacation pay, profit sharing plan income and other compensation regardless of where earned.

Deferred compensation distributions.

Fair market value of merchandise or services received as compensation.

Net profit from operation of a business or profession or other activity regardless of where earned.

Income from a partnership, estate or trust, interest from bank accounts, credit unions, savings and loan associations and other income regardless of where earned.

Rental income, capital gains and dividends.

Lottery winnings

A nonresident is subject to tax on all items included in total federal income, which are derived from or connected with Portland sources.

Taxable income includes:

Salaries, bonuses, wages, commissions, fees, vacation pay, profit sharing plans and other compensation for services rendered as an employee in Portland.

Fair market value of merchandise or services received as compensation.

Net profits from the operation of a business or profession or other activity conducted in Portland.

Net profits from rental of real and tangible property located in Portland.

Net profits from sale or exchange of personal property located in Portland.

Show All Answers

1. How does Portland spend funds generated through the Income Tax?
2. What is the tax rate for the City of Portland Income Tax?
3. Why do I have to make quarterly estimated income tax payments?
4. How do I file for an extension of time?
5. What are the penalty and interest charges if I pay my income tax late?
6. Can I e-file my Portland income tax return?
7. Who needs to file a City of Portland Individual Income Tax Return (P-1040)
8. I lived in the City of Portland for part of the year. How do I file?
9. I lived in the City of Portland for part of the year, and I worked in the City all of the year. How do I file?
10. What is taxable income?
11. What is nontaxable income?
12. What deductions are allowable when filing the City of Portland Individual Income Tax Return (P-1040)
13. Who must file a City of Portland Corporate Income Tax Return (P-1040)
14. Who must file a City of Portland Partnership Income Tax Return (P-1065)?
15. Can a partnership pay the City Income Tax for the partners?
16. Who must withhold Portland City Income Tax?
17. How do I file and pay my withholding?
18. When are my withholding payments due?
19. I do not have withholding for this quarter. What do I do?
20. Who has to file a City of Portland Fiduciary Income Tax return (P-1041)?
21. Helpful Hints