Who would contribute to the proposed payroll tax and how much would it cost?

A payroll tax is levied as a percent of gross payroll earned within the taxing jurisdiction. Entities can enact a payroll tax on employees and/or on employers. 


See the chart below to estimate how much you will contribute each month. A business owner will not be taxed twice (as both an employee and the employer).


Proposed Monthly Cost to Minimum Wage Employees

Tax Rate$12/hr*
0.0000$0/month

* As of July 1, 2020, the minimum wage in Eugene will be $12 per hour.



Proposed Monthly Cost to Employees Earning $12.01-$15/hour

Tax Rate$13/hr$14/hr$15/hr
0.0030$7/month$7/month$8/month



Proposed Monthly Cost to Employees at Various Hourly Wages Above $15/hour

Tax Rate$16/hr$20/hr$24/hr$28/hr$32/hr$36/hr$40/hr
0.0044$12/month$15/month$18/month$21/month$24/month$27/month$31/month



Proposed Monthly Cost to Employers (2 or Less Employees) with Annual Gross Payroll of $100,000

Tax Rate$100,000**
0.0015$13/month

**An employer with two employees or less would receive a reduced rate of .0015 on the first $100,000 of payroll. 



Proposed Monthly Cost to Employers (More than 2 Employees) with Annual Gross Payroll of $500,000

Tax Rate$500,000
0.0021$88/month



The revenue team recognized that the payroll tax doesn’t impact every segment of the population. It would not capture revenue from visitors, city residents employed elsewhere, retirees and the unemployed. The revenue team, however, thought that this approach was the most clear and fair of the final options considered.

Show All Answers

1. Why do the City’s community safety services need more funding?
2. How did the Council decide on a payroll tax?
3. What is a payroll tax?
4. Who would contribute to the proposed payroll tax and how much would it cost?
5. Will public employees have to pay the payroll tax?
6. What do I get for my money?
7. How will the City be held accountable with money earned from the payroll tax?
8. Where does Community Safety funding come from now?
9. Why isn’t money from the marijuana tax, or other taxes, being used instead of a payroll tax?
10. Can I submit written comments online about the payroll tax ordinance?
11. Will I get to vote for the payroll tax?
12. How long will it take for the tax to go into effect?
13. Does Oregon have a payroll tax?