Oregon Corporate Activity Tax (CAT) calculator for businesses. Computes tax on commercial activity over $1M with 35% cost subtraction, quarterly estimates, and filing deadlines. Triggers on Oregon CAT, Oregon business tax, corporate activity tax, Oregon commercial activity.
Compute Oregon CAT liability for businesses operating in Oregon. Handles the $250 base + 0.57% rate, 35% cost subtraction (cost inputs vs. labor costs), quarterly estimated payments, and filing deadlines per Oregon DOR rules.
Oregon's Corporate Activity Tax (CAT) is a modified gross receipts tax — it applies to commercial activity (gross receipts from transactions in Oregon), not net income. However, unlike a pure gross receipts tax, the CAT allows a for the greater of cost inputs or labor costs, making it a hybrid.
The CAT was enacted in 2019 (effective 2020) and applies to all business entity types — corporations, partnerships, LLCs, sole proprietors, and S-corps. It is separate from Oregon's corporate income/excise tax and personal income tax1.
The CAT has a single rate structure with a base amount:
| Component | Amount | Source |
|---|---|---|
| Base tax | $250 | Oregon DOR CAT |
| Rate on commercial activity over $1M | 0.57% | Oregon DOR CAT |
Formula:
CAT = $250 + (0.0057 × max(taxable_commercial_activity - $1,000,000, 0))
There are no tiered rates or classification-based rates. All business types pay the same rate1.
Oregon does not impose an additional surcharge on high-grossing businesses for the CAT.
The CAT's key feature: businesses may subtract 35% of the greater of2:
The subtraction cannot exceed 95% of commercial activity2.
Cost inputs vs. labor costs: Service businesses with few material costs typically benefit more from the labor cost subtraction. Manufacturing or retail businesses with significant COGS typically benefit from the cost input subtraction. Always compute both and use the greater amount2.
The following are exempt from the CAT (unless they have unrelated business taxable income)1:
Certain receipts are excluded from the commercial activity calculation1:
| Threshold | Amount | Requirement | Source |
|---|---|---|---|
| $750,000 or less | No obligations | No registration, no filing, no payment | Oregon DOR CAT |
| Over $750,000 | Must register | Register within 30 days of reaching threshold | Oregon DOR CAT |
| Over $1,000,000 | Must file and pay | File annual return + pay tax | Oregon DOR CAT |
| Filing Type | Due Date | Source |
|---|---|---|
| Annual return | April 15 (15th of 4th month after tax year end) | Oregon DOR CAT |
| Q1 estimated payment | April 30 | Oregon DOR CAT |
| Q2 estimated payment | July 31 | Oregon DOR CAT |
| Q3 estimated payment | October 31 | Oregon DOR CAT |
| Q4 estimated payment | January 31 | Oregon DOR CAT |
Estimated quarterly payments are required if the business expects $5,000 or more in CAT liability for the year1.
Returns must be filed by mail or approved e-file vendor — not through Revenue Online1.
Entities with 50%+ common ownership and unitary business activity must file as a single taxpayer. One member is designated as the CAT entity. A combined return with an affiliate schedule listing all members with Oregon commercial activity is required1.
The CAT uses a significant economic presence standard for nexus, without a bright-line dollar threshold3:
"A person has nexus with Oregon to the extent the person can be required under the U.S. Constitution to remit the tax."
In practice: If your business regularly takes advantage of Oregon's economy to generate commercial activity — through customers, sales, or services in Oregon — you likely have CAT nexus. The Oregon DOR does not publish a specific dollar threshold like Washington's $100K test3.
If you're unsure whether your business has CAT nexus, consult the Oregon DOR or a tax professional.
Oregon cities generally do not impose gross receipts taxes. However, Portland and Multnomah County impose local net income taxes on businesses (not gross receipts):
These are net income taxes, not gross receipts taxes — they work differently from the CAT. See references/city-taxes.md for full details on rates, thresholds, and filing.
Salem and Eugene do not impose city-level business income or gross receipts taxes.
Sum all gross receipts from transactions and activity sourced to Oregon. Exclude exempt receipts (grocery, fuel, out-of-state, etc.).
Calculate both options and use the greater:
cost_input_subtraction = 0.35 × cost_inputs
labor_cost_subtraction = 0.35 × labor_costs
subtraction = max(cost_input_subtraction, labor_cost_subtraction)
subtraction = min(subtraction, 0.95 × commercial_activity) # Cap at 95%
taxable = commercial_activity - subtraction
cat = $250 + (0.0057 × max(taxable - $1,000,000, 0))
If operating in Portland or Multnomah County, compute city/county net income taxes separately.
Annual Oregon commercial activity: $1,800,000
Cost inputs (COGS): $120,000
Labor costs (wages + benefits): $600,000
Step 1: Commercial activity = $1,800,000
Step 2: Over $1M → tax applies
Step 3: Subtraction
Cost input subtraction: 0.35 × $120,000 = $42,000
Labor cost subtraction: 0.35 × $600,000 = $210,000
Use labor (greater): $210,000
Cap check: 0.95 × $1,800,000 = $1,710,000 → $210,000 is under cap ✓
Step 4: Taxable = $1,800,000 - $210,000 = $1,590,000
Step 5: CAT = $250 + (0.0057 × ($1,590,000 - $1,000,000))
CAT = $250 + (0.0057 × $590,000)
CAT = $250 + $3,363.00
CAT = $3,613.00
Annual CAT liability: $3,613.00
When computing CAT, present results as:
## Oregon CAT — [Period]
| Item | Amount |
|---|---|
| Oregon Commercial Activity | $XX,XXX.XX |
| Cost Input Subtraction (35%) | $XX,XXX.XX |
| Labor Cost Subtraction (35%) | $XX,XXX.XX |
| **Subtraction Used (greater)** | **$XX,XXX.XX** |
| Taxable Commercial Activity | $XX,XXX.XX |
| Base Tax | $250.00 |
| Tax on Activity over $1M (0.57%) | $X,XXX.XX |
| **Total CAT Due** | **$X,XXX.XX** |
| Due Date | [date] |
*Portland/Multnomah taxes (if applicable):*
| Tax | Rate | Taxable Income | Tax Due |
|---|---|---|---|
| Portland BLT | 2.6% | $XX,XXX | $X,XXX |
| Multnomah MCBIT | 2.0% | $XX,XXX | $X,XXX |
This provides general tax guidance based on publicly available information. It is not legal or tax advice. Consult a qualified tax professional for your specific situation.
Oregon DOR CAT (referencing OAR 150-317-1010 for nexus guidance) ↩ ↩2