Oregon state and local taxes for booth renters
Which Oregon state and local taxes does a booth renter owe?
Oregon taxes a booth renter's income, not the services
Oregon does not have a state sales tax. A booth renter owes Oregon personal income tax on net earnings, plus local taxes that depend on where the chair is.
So there is no sales tax permit to apply for and no tax to add to a haircut or a retail bottle. That removes a whole filing some other states require from salons.
What replaces it is a high income tax. Oregon's rates run from 4.75 to 9.9 percent. The four-quarter payment plan is on quarterly estimated taxes.
The Oregon Department of Revenue's summary of Oregon taxes states that Oregon does not have a state sales tax. — Oregon Department of Revenue, retrieved 2026-09-27
4.75% to 9.9%Oregon's 2026 rate charts for single filers start at 4.75% of taxable income and reach 9.9% above $125,000. — Oregon Department of Revenue, retrieved 2026-09-27
TriMet and Lane Transit self-employment taxes
Booth renters working in the Portland metro TriMet district or the Eugene-Springfield Lane Transit district owe a transit self-employment tax on net earnings over $400.
It is small but easy to miss. It is filed with the Department of Revenue, due with your income tax return, usually April 15. The earnings figure comes from your federal Schedule SE.
The district boundary matters, not the city name. The Department's guide lists the ZIP codes in each district. If you work in and out of a district, an apportionment schedule splits the earnings.
| District | 2025 rate | 2024 rate |
|---|---|---|
| TriMet | 0.8237% | 0.8137% |
| Lane Transit District | 0.80% | 0.79% |
$400The Department of Revenue says taxpayers with net self-employment earnings over $400 from activity in the TriMet or LTD districts must pay transit self-employment tax. — Oregon Department of Revenue, retrieved 2026-09-27
0.8237%Publication OR-TRAN-SE lists 2025 transit self-employment rates of 0.008237 for TriMet and 0.0080 for Lane Transit District, using net earnings from federal Schedule SE. — Oregon Department of Revenue, retrieved 2026-09-27
Portland and Multnomah County business taxes
A sole-proprietor renter working in Portland files a combined city and county business tax return. The city rate is 2.6 percent and the county rate 2.0 percent of business income.
Small renters are often exempt from the tax itself. The city exempts gross receipts under $50,000, and the county under $100,000. The exemption is not automatic.
You still file the return to claim it, every year, by the deadline. For the 2025 tax year that was April 15, 2026. A renter who skips the filing because they owe nothing can be penalized anyway.
| Tax | Rate | Exempt below |
|---|---|---|
| City of Portland business license tax | 2.6% | $50,000 gross receipts |
| Multnomah County business income tax | 2.0% | $100,000 gross receipts |
2.6% and 2.0%Portland's Form SP instructions set a 2.6% city rate and a 2.0% Multnomah County rate, with exemptions for gross receipts under $50,000 and $100,000. — City of Portland Revenue Division, retrieved 2026-09-27
April 15, 2026The Form SP instructions say an exempt business is still required to file a business tax return by the due date, which for 2025 was April 15, 2026. — City of Portland Revenue Division, retrieved 2026-09-27
The Oregon corporate activity tax threshold
Oregon's corporate activity tax applies to any business form, sole proprietors included, but only above $1 million of taxable Oregon commercial activity.
Registration starts at $750,000. The tax itself is $250 plus 0.57 percent of activity over $1 million. A single chair will not reach it. A large suite operation might, which is why owners of multi-suite buildings should know it exists.
$250 + 0.57%The Oregon corporate activity tax is $250 plus 0.57 percent of taxable Oregon commercial activity above $1 million, and applies to sole proprietorships. — Oregon Department of Revenue, retrieved 2026-09-27
The LLC annual report is a state filing, not a tax
If you formed an LLC, Oregon expects a $100 annual report on each anniversary of the filing. It is not a tax on income, but missing it puts the entity at risk.
The state mails a notice about 45 days ahead. Private companies also mail look-alike notices asking for more. The Secretary of State has named these mailings and says the real fee is only $100.
Whether you need an LLC at all is covered on sole proprietor or LLC.
45 daysOregon's annual report or renewal is due on the anniversary date of the original filing, with renewal notices sent about 45 days before. — Oregon Secretary of State, Corporation Division, retrieved 2026-09-27
$100The Oregon Secretary of State says the required state fee for an LLC annual report is only $100. — Oregon Secretary of State, Corporation Division, retrieved 2026-09-27
Check your salon's address before you sign the lease
Two chairs a few miles apart can carry different local taxes. Look up the salon's ZIP code against the transit district lists, and check whether it sits inside Portland or Multnomah County.
A salon just outside the TriMet line may save you the transit tax. One inside Portland adds a yearly business tax filing, even if you owe nothing. Neither should decide the chair on its own, but both belong in the budget on the booth rental cost breakdown. Then follow the setup guide in order.
The Department of Revenue's transit guide lists the ZIP codes completely and partially inside the TriMet and Lane Transit districts. — Oregon Department of Revenue, retrieved 2026-09-27
Questions
Do I charge sales tax on retail products I sell at my station?
Not in Oregon, which has no state sales tax. Product sales are still business income and belong in your gross receipts on Schedule C.
Does the transit tax need quarterly payments?
No. Oregon's transit guide says estimated payments are not required. You file and pay the transit tax by the return's due date, usually April 15.
I live in Vancouver, Washington but rent a chair in Portland. Do Oregon taxes apply?
Oregon taxes nonresidents on income from services performed in Oregon, so chair income earned in Portland is Oregon-source income. Portland and transit taxes follow where the work is done.