What Is the Oregon TriMet Tax and Who Needs to Pay It?
Navigate Oregon's TriMet tax obligations. This guide clarifies the transit tax system for employers, employees, and self-employed individuals in the district.
The Oregon TriMet tax is a transit payroll tax that funds the public transportation system, including buses and light rail, in the Portland metropolitan area. The tax applies to most employers and self-employed individuals conducting business within the Tri-County Metropolitan Transportation District (TriMet). This tax is separate from the statewide transit tax and is tied specifically to activities within the TriMet district’s boundaries.
Determining Who is Subject to the Tax
The obligation to pay TriMet tax is determined by where work is performed, not where an employer is based or an employee lives. Any employer, regardless of their location, must pay the tax on wages paid to employees for services conducted within the TriMet district. This includes wages for employees who travel into the district for work or who work from a home located within its boundaries. An interactive map is available on the TriMet website to determine if a work location is in the taxable area.
If an employee works both inside and outside the district, only the wages earned for the portion of work performed inside the district are subject to the tax. The responsibility for correctly calculating and remitting this tax falls entirely on the employer.
Self-employed individuals are also required to pay the tax if they have net earnings of more than $400 from business activities performed within the TriMet district. This applies to sole proprietors and individual members of a partnership who conduct business or provide services in the area. If a self-employed person’s business activities occur both inside and outside the district, they must apportion their net earnings to determine the taxable amount.
Certain organizations and types of wages are exempt from the TriMet tax. Exemptions include:
- Wages paid by federal credit unions, public school districts, and most 501(c)(3) nonprofit organizations, though hospitals are not exempt.
- Wages paid by insurance companies, other than domestic insurers.
- Wages for most domestic services in a private home.
- Income from insurance-related activities for self-employed individuals.
Calculating the TriMet Tax
Taxable wages broadly include all forms of compensation provided to an employee for their services. This includes salaries, hourly pay, commissions, and bonuses.
As of January 1, 2025, the TriMet tax rate is 0.8237% (0.008237). This rate applies to an employer’s gross payroll for work performed in the district and to a self-employed individual’s net earnings from work in the district. The tax is paid by the employer and is not a deduction from employee wages.
For an employer, the calculation involves multiplying their total taxable payroll for the period by the tax rate. For instance, if an employer has a total quarterly payroll of $100,000 for services performed within the TriMet district, their tax liability for that quarter would be $823.70 ($100,000 x 0.008237).
A self-employed individual calculates their tax based on their net business earnings. If a consultant earns $80,000 in net self-employment income for the year and determines that 75% of that income was from services performed within the TriMet district, their taxable base is $60,000. The TriMet tax owed would be $494.22 ($60,000 x 0.008237).
Filing and Payment Procedures
Employer Requirements
Employers report and pay the TriMet tax quarterly using the Oregon Quarterly Tax Report, Form OQ. This form is a combined report used for several state payroll taxes, including state income tax withholding and unemployment insurance. To complete Form OQ, employers need their Oregon Business Identification Number (BIN), the total subject wages for the quarter, and the calculated tax amount.
Filing can be done electronically through the state’s Revenue Online portal or by mailing Form OQ with a payment coupon, Form OTC. The quarterly deadlines are April 30, July 31, October 31, and January 31 for the preceding quarter. Employers must also file an annual reconciliation report, Form WR, to summarize the year’s taxes.
Self-Employed Individual Requirements
Self-employed individuals handle their TriMet tax obligations annually with their Oregon personal income tax return, Form OR-40. They must complete and attach Schedule OR-TM, TriMet Self-Employment Tax, to calculate the tax owed.
The tax calculated on Schedule OR-TM is added to the individual’s total state tax liability and paid with their annual income tax payment. The due date is the same as the federal income tax deadline, typically April 15. Payments can be made online through the Department of Revenue’s website or by mail.