Financial leadership for Oregon clinics dealing with one of the highest individual income tax rates and a gross receipts tax most accountants outside the state miss

9.9% top individual income tax rate

Oregon's graduated individual income tax tops out at 9.9% on income over roughly $125K for single filers and $250K for joint filers. The bracket structure means most clinic owners taking material distributions hit the top rate quickly. There is no preferential rate for pass-through income.

Source: Tax Foundation: Oregon

Corporate Activity Tax (CAT) at 0.57% on gross receipts above $1M

Oregon imposes a CAT on commercial activity above a $1M threshold at 0.57%, calculated as commercial activity minus 35% of the greater of cost inputs or labor costs. The CAT applies to S corps, partnerships, LLCs, and C corps alike. For a clinic doing $5M in commercial activity, the CAT can run roughly $15K to $25K per year depending on the labor or cost-of-goods deduction. Most outside accountants either miss it or compute it incorrectly because the cost-input rules are not intuitive.

Source: Oregon Department of Revenue: CAT

Corporate excise tax up to 7.6%

Oregon's corporate excise tax runs 6.6% on the first $1M of Oregon taxable income and 7.6% on income above that. C corp structures are uncommon for clinical practices because of double taxation, but the rate matters for MSO entities and DSO structures that may be C corps holding non-clinical operations.

Pass-Through Business Alternative Income Tax (PTE-E)

Oregon's PTE-E election lets S corps and partnerships pay state tax at the entity level, restoring federal SALT-cap deductibility. The election is made annually and must be made by the original due date of the return. For most Oregon clinic owners with meaningful net income, the federal savings are worth the administrative effort, but the math has to be worked through each year.

Source: Oregon Department of Revenue: PTE-E

No state sales tax

Oregon does not impose a state sales tax. For clinics with retail or aesthetic product sales, this removes a compliance burden that exists in most states. The trade-off is that property taxes and income taxes are higher than the national average to make up the revenue.