Portland, Oregon
Portland employer costs: minimum wage, taxes and paid leave
Portland employers pay the higher Portland-metro minimum wage and the TriMet transit payroll tax, and must pay sick time from 6 employees. The minimum wage is $16.80 an hour. A $50,000 employee costs a new employer about $63,650 a year here in 2026.
Calculate the cost of an employee in Portland
Estimates for planning, not tax or legal advice. Rates change and some depend on your business; confirm yours with your state agencies, insurer or payroll provider.
Portland employer rules on top of Oregon's
What Portland adds, then the federal and Oregon lines every employer here pays. The full Oregon breakdown is on the state page.
- Portland minimum wage
$16.80 in 2026
$16.80 an hour (Portland metro rate, July 1, 2026 to June 30, 2027).
per Oregon Bureau of Labor and Industries, as of Jul 1, 2026
- TriMet transit payroll tax
0.8237% of payroll
Employers pay 0.8237% of gross payroll for work done in the TriMet transit district (the Portland metro area).
per Oregon Department of Revenue, as of Jan 1, 2026
- Portland paid sick leave
40 hours a year
One hour per 30 hours worked, up to 40 hours a year; paid with 6 or more employees when the employer has a Portland location.
per Oregon Bureau of Labor and Industries, as of Jan 1, 2026
- Social Security and Medicare
7.65% of pay
The employer matches the employee: 6.2% Social Security on pay up to $184,500 in 2026 ($192,300 in 2027) and 1.45% Medicare on all pay.
per Social Security Administration, as of Jan 1, 2026
- Federal unemployment tax (FUTA)
$42 per employee
6% of the first $7,000 of each employee's pay, less the 5.4% credit for paying Oregon unemployment tax on time.
per Internal Revenue Service, as of Jan 1, 2026
- Oregon unemployment insurance (SUTA)
2.4% of $56,700
New employers pay 2.4% on the first $56,700 of each employee's pay in 2026. After two to three years the rate follows your own claims history.
per Oregon Employment Department, as of Jan 1, 2026
Checked against each source on Oct 23, 2026.
Two worked examples in Portland
Both for a new employer with 10 employees in a general industry in 2026, with single health coverage at the state average.
Salaried employee at $50,000
A $50,000 salary, 40 hours a week.
| Pay for hours worked2,040 hours | $49,038 |
|---|---|
| Paid sick leave required by law40 hours | $962 |
| Social Security (employer share)6.2% of $50,000 | $3,100 |
| Medicare (employer share)1.45% of $50,000 | $725 |
| FUTA (federal unemployment tax)0.6% of $7,000 | $42 |
| State unemployment insurance (new employer)2.4% of $50,000 | $1,200 |
| TriMet transit payroll tax0.8237% of $50,000 | $412 |
| Workers' compensation (state index rate)$0.89 per $100 of payroll | $445 |
| Health insurance (single coverage, state average)average employer contribution | $7,726 |
| Total cost a year | $63,650 |
27.3% on top of pay · $31.20 per hour worked
Hourly employee at $18 an hour
$18 an hour for 40 hours a week, 52 weeks.
| Pay for hours worked2,040 hours | $36,720 |
|---|---|
| Paid sick leave required by law40 hours | $720 |
| Social Security (employer share)6.2% of $37,440 | $2,321 |
| Medicare (employer share)1.45% of $37,440 | $543 |
| FUTA (federal unemployment tax)0.6% of $7,000 | $42 |
| State unemployment insurance (new employer)2.4% of $37,440 | $899 |
| TriMet transit payroll tax0.8237% of $37,440 | $308 |
| Workers' compensation (state index rate)$0.89 per $100 of payroll | $333 |
| Health insurance (single coverage, state average)average employer contribution | $7,726 |
| Total cost a year | $49,612 |
32.5% on top of pay · $24.32 per hour worked
What changes in 2027
- The Social Security wage base rises from $184,500 to $192,300: up to $484 more employer tax for employees paid above it. per Social Security Administration, as of Jan 1, 2027
Only changes already official on Oct 23, 2026. Most states publish next year's unemployment insurance rates in November and December; this page is updated when they do.
Frequently asked questions
When does the Portland minimum wage change?
Portland's $16.80 rate (portland metro rate, july 1, 2026 to june 30, 2027) is the latest published by Oct 23, 2026.
What is the minimum wage in Portland in 2026?
$16.80 an hour in Portland (portland metro rate, july 1, 2026 to june 30, 2027), or $1.25 above Oregon's $15.55.
How much does an employee cost in Portland?
$63,650 a year for a $50,000 employee of a new Portland employer with 10 staff (27.3% above pay), $412 more than elsewhere in Oregon because of Portland's own charges.
What payroll taxes do employers pay in Portland?
TriMet transit payroll tax on top of $5,067 of federal and Oregon payroll taxes on a $50,000 salary.
Is paid sick leave required in Portland?
Yes. One hour per 30 hours worked, up to 40 hours a year; paid with 6 or more employees when the employer has a Portland location.
What does a minimum-wage employee cost in Portland?
$46,823 a year at $16.80 an hour full time in Portland: $22.95 per hour worked.
Who pays the TriMet transit payroll tax?
Employers pay 0.8237% of gross payroll for work done in the TriMet transit district (the Portland metro area). On a $50,000 employee that is $412 a year.
More employer cost pages
Oregon
Other cities with their own rules
Software and services for these costs
- Payroll Software
Calculates and files these payroll taxes for every state you hire in.
- PEO Services
Takes on payroll taxes, workers' comp and benefits, often at group rates.
- Benefits Administration
Runs the health plan and leave programs behind the benefits lines.
Benefits and workers’ comp are most of this cost
A PEO pools employers for health insurance and workers’ comp, often at group rates. Compare PEOs we research, with verified prices and features.