Oregon's Corporate Activity Tax (CAT) took effect in 2020 and applies to nearly every business structure — C corporations, S corporations, partnerships, LLCs and sole proprietors. Unlike a corporate income tax, it is levied on gross receipts ("commercial activity") rather than profit, and it is charged in addition to Oregon's regular corporate income/excise tax.
The CAT only bites once a business has more than $1 million of Oregon commercial activity, and a generous 35% cost subtraction softens the base for businesses with heavy cost of goods or payroll.
Estimate your Oregon CAT in under a minute.
Open calculatorKey numbers
$750,000
Registration threshold
Register within 30 days of exceeding
$1,000,000
Filing threshold
Of Oregon commercial activity
$250
Base tax
Also the effective minimum for filers
0.57%
Marginal rate
On taxable activity above $1M
35%
Cost subtraction
Of the greater of COGS or labor
Who owes it
- Any business with more than $1,000,000 of Oregon commercial activity in the tax year must file Form OR-CAT and pay the tax.
- Businesses over $750,000 of Oregon commercial activity must register for the CAT within 30 days — even if they will not owe any tax.
- Members of a unitary group file a single combined CAT return.
How the tax is calculated
- 1Start with Oregon commercial activity (gross receipts sourced to Oregon).
- 2Remove statutory exclusions — groceries, motor-vehicle fuel, out-of-state sales, intercompany receipts within a unitary group, and others.
- 3Subtract 35% of the greater of (a) cost of goods sold or (b) labor costs, apportioned to Oregon. This subtraction cannot exceed 95% of commercial activity.
- 4Subtract the first $1,000,000 (the exclusion threshold).
- 5Multiply the remainder by 0.57% and add the flat $250 base.
What's excluded from the base
- Wholesale and retail grocery sales
- Motor-vehicle fuel sales (subject to fuel tax instead)
- Receipts from sales delivered outside Oregon
- Transactions between members of the same unitary group
- Interest (other than from loans), dividends, and certain asset-sale proceeds
Deadlines & filing
Oregon Corporate Activity Tax Return
Form OR-CAT (150-106-003)
Annual, with quarterly estimated payments if CAT ≥ $5,000. Due April 15 (15th day of the 4th month after year-end).
Recent changes
- No structural changes to the thresholds, 0.57% rate, $250 base, or 35%/95% cost subtraction apply for 2025 or 2026.
Frequently asked questions
Sources
Administered by Oregon Department of Revenue. Informational only — not tax advice.