Portland’s Business License Tax

Portland’s Business License Tax is a net income tax on any business activity (including renting residential and commercial real property) conducted in Portland.  The tax income is used as revenue for the general fund (police, fire, some parks programs, and general government functions).

You are generally considered to be “doing business” in the City of Portland, Multnomah County, and/or Metro jurisdiction and must register for a Revenue Division tax account if:

• Your business has a retail location in the City of Portland, Multnomah County, and/or Metro jurisdiction.
• Your business comes into the City of Portland, Multnomah County, and/or Metro jurisdiction to perform services.
• Your business maintains a stock of goods in the City of Portland, Multnomah County, and/or Metro jurisdiction.
• Your business owns, leases, or rents personal or real property (including residential or commercial property) in the City of Portland, Multnomah County, and/or Metro jurisdiction.
• You are self-employed and work in Portland and/or Multnomah County.

Businesses that are operating within the City of Portland and/or Multnomah County (including rideshare drivers) must register for a Revenue Division tax account within 60 days.

To see if your work location is located within Portland and/or Multnomah County, visit Portland Maps and enter the address of the work location. If you are working within both tax jurisdictions, you are generally subject to both taxes. If you are only doing business in Multnomah County (Gresham, Troutdale, Corbett, etc.) you must still register with the Revenue Division, but you will only be liable for the Multnomah County Business Income Tax.

Business Tax Rates and Other Fees/Surcharges

Business Tax Rates

City of Portland Business License Tax rate: 2.6%

Multnomah County Business Income Tax rate: 2%

Metro Supporting Housing Services (SHS) Business Income Tax rate: 1%

Other Fees/Surcharges

Residential Rental Registration (RRR) Fee

For tax years beginning on or after January 1, 2018, all owners of residential rental property within the City of Portland are required to register their residential rental unit and may owe the Residential Rental Registration (RRR) fee. Visit our Residential Rental Registration page for more information about the filing and payment requirements.

Business Tax Return Filing Requirements

Taxfilers must file their business tax returns and pay their business tax liability at the same time they file their federal and state income tax returns (generally, April 15 for calendar year taxfilers). For taxfilers that have different federal or State of Oregon filing due dates, please read our policy on when your returns are due.

Taxfilers who qualify for an exemption from the City of Portland and/or Multnomah County Business Income Taxes must still file a Combined Tax Return with their supporting tax pages.

Businesses who qualify for an exemption from the Metro Supportive Housing Services (SHS) Business Income Tax do not need to file a Metro SHS Business Income Tax return.

Exemptions

City of Portland Business License Tax and/or Multnomah County Business Income Tax

If a taxfiler qualifies for one or more of the exemptions from the City of Portland Business License Tax and/or Multnomah County Business Income Tax, they must file their business tax return to request a exemption each year and provide supporting tax pages.

Certain taxfilers are exempt under the City of Portland and/or Multnomah County Business Income Tax codes, Administrative Rules, and Policies. These exemptions include, but are not limited to:

• Taxfilers whose gross business income amounts to less than $50,000 from all business receipts everywhere.
  • For tax years beginning on or after January 1, 2020, taxfilers whose gross business income amounts to less than $100,000 from all business receipts everywhere may qualify to be exempt from Multnomah County Business Income Tax only.
• Real estate brokers working under the supervision of a primary broker (City of Portland Business License Tax only).
• Individuals whose only business transactions are exclusively limited to the renting or leasing of less than ten total residential real property dwelling units, regardless of whether the units are located inside or outside of Multnomah County (Multnomah County Business Income Tax only).
• Individuals whose only income is:
  • Wages,
  • Gain on sale of primary residence,
  • Gain on sale of personal property acquired for personal or household use, and/or
  • Investment earnings (if not part of a business).
• Corporations exempt from the Oregon Corporation Excise Tax under ORS 317.080 (generally not-for-profit corporations), unless subject to tax on unrelated business income.
• Trusts exempt from Federal income tax under IRC § 501, unless subject to tax on unrelated business income.
• Persons whose only business activity is raising or harvesting the person’s own crops or livestock.
• Persons who operate a display booth in a permanent structure for less than 14 days in a tax year. These circumstances require a Temporary Business License.

The Revenue Division will send them a notice requesting them to file a return.If the taxfiler does not file their Combined Tax Return, Civil Penalties will be assessed and collection activities will begin.

Requesting an Extension to File

If a taxfiler cannot complete their business tax return by the original due date, they may request a six-month extension to file their business tax return. This extension should be accompanied by a payment of the estimated tax due, if applicable. This is an extension to file only. There is no extension to pay the business taxes.

Due dates for tax returns and extensions are based on fiscal year end of the taxfiler.

Paying Your Business Taxes

The payment for your businesses taxes is due at the same time you file and pay your federal and state taxes (generally April 15 for most filers). If you have requested an extension of time to file your tax return, your payment is still due on the original due date. There is no extension to pay your business taxes.

Failure to pay the business taxes by the original due date will result in late payment penalties and interest.

Closing your Revenue Division tax account(s)

When a business is sold, closed, or no longer operates within the City of Portland, Multnomah County, and/or Metro’s jurisdiction, they should notify the Revenue Division to close their business tax account(s). When a business tax account is closed, a taxfiler should:

1. File a Combined Tax Return for the final year the business operated in the City, County and/or Metro.
2. Complete the Out of Business form (or a statement with the same information) and attach it to the Combined Tax Return. Make sure to provide:
   • The new owner’s name and address (if the business or property has been sold)
   • Whether you ceased all business activity or only activity in the City of Portland, Multnomah County and/or the Metro jurisdiction

Don’t close the business tax account if:

• There is contract (installment) sales from the sale of the business. This income is considered continuing business income and will require annual filings.
• A taxfiler owns real property and intends to rent or lease it to others.

Temporary Business Licenses

If your business meets the criteria below, you must apply for and obtain a temporary business license certificate:

• Seasonal vendors operating in a temporary location and conducting limited, seasonal sales (i.e., Christmas tree and fireworks sales). Fees: $10/day/location, not to exceed $100/location.
• Special events vendors selling event-related merchandise. Fees: $10/day/vendor, not to exceed $100/location.
• Film production companies filming in the City of Portland for no more than 3 business days per calendar year.
• Promoters of commercial entertainment doing business in the City of Portland for no more than 3 business days per calendar year. Fees: $25/day.
• Vendors in temporary structures for no more than 14 days. Fees: $10/day/vendor, not to exceed $100/location.
• Amusement ride operators not in the same location for more than 14 days. Fees: $10/day/vendor; and $10/day for each ride operated.

If your business does not meet the eligibility for a temporary business license, you must register for a Revenue Division tax account.