Decouples from §1202.
Oregon decouples from §1202 as of TY 2026. Senate Bill 1507, signed by Governor Kotek on 2026-04-09 and effective for tax years beginning on or after 2026-01-01, adds the federal §1202 exclusion back to Oregon taxable income — Oregon taxes 100% of the QSBS gain at the state level for sales in TY 2026 and later.
Decode a Oregon-resident QSBS exit
The decoder loads pre-filled with OR as the state of residence. Change any input — issuance date, gain, basis — to see how this state's conformity rule reshapes the all-in tax.
What a Oregon resident pays
$10,000,000 exit, 5+ year hold, post-OBBBA rules.
Example gain selected deterministically per state to reflect conformity profile; post-OBBBA rules, 5+ year hold, full federal 100% exclusion within the per-issuer cap. State arithmetic uses top marginal rate as a conservative upper bound — bracketed rates apply in practice. Change any input and open in the decoder to model your own facts, then cross-check the underlying citations on sources.
Residency test — which state's rule actually applies
State conformity applies based on the taxpayer's state of residence at the time of sale, not at the time of issuance. If you held QSBS while resident in one state, then established residency in Oregon before the exit, Oregon's rule generally controls the state-tax leg of the transaction.
Part-year residents typically apportion the gain across states by residency days within the tax year. Most states also apply a statutory residence test (often a 183-day physical-presence threshold or a domicile-plus-permanent-place-of-abode rule) that can pull a recent mover back into the prior state's tax base. Establish facts — driver's license, voter registration, primary home, days-in-state log — well before the sale, not after.
The decoder does not model multi-state apportionment or residency challenges. For relocation-timed exits, consult a CPA with state residency expertise; this is the single highest-impact lever in QSBS state planning. Residency at exit also interacts with the federal five-year holding period for state purposes — the federal clock keeps running across state lines, but the state-tax leg only attaches once you cross the state's residency threshold in the year of sale. Because Oregon does not honor the federal exclusion in full, understanding the $10M-or-10×-basis exclusion cap matters most here: the slice the state will tax is exactly the slice the federal cap would otherwise have shielded. Compare Oregon's rule against California, the canonical full-decouple jurisdiction.
State-return reporting
Federally, the §1202 exclusion is reported on Form 8949 with adjustment code Q and the unexcluded slice flows to Schedule D with the 28% rate via the Schedule D 28% Rate Gain Worksheet.
The corresponding Oregon state-return line varies by tax year and form revision. Rather than pin a specific line number (which would stale within one filing season), this page directs you to the current Oregon DOR instructions for the year you are filing. If you would like a per-state line-number table maintained at this site, file a request via contact.
Recent Oregon legislative activity affecting QSBS
[VERIFY] No known recent Oregon legislative changes affecting §1202 state conformity as of 2026-05-11. Federal OBBBA (P.L. 119-21 §70431, signed 2025-07-04) modified federal §1202; state-level response varies by jurisdiction. This slot is reviewed during each conformity-manifest refresh.
Oregon QSBS — frequently asked
Does Oregon tax my §1202 QSBS gain at the state level?
Oregon does not conform to IRC §1202 at the state level. 100% of the QSBS gain is taxable as state ordinary income — the federal exclusion provides no state-level benefit. See the state-source pin on this page for the controlling code section.
What is Oregon's top marginal rate on capital gains?
Oregon's top marginal personal income rate on long-term capital gains is approximately 9.90% (reference figure for 2026; consult the state DOR for your exact bracket). Most states tax capital gains at ordinary-income rates.
If I moved to Oregon just before selling QSBS, does the state resident rule apply?
State conformity follows the taxpayer's state of residence at the time of sale, not at issuance. If you established Oregon residency just before selling QSBS, Oregon's rule generally applies — subject to that state's domicile, statutory-residence (days-physical-presence), and part-year apportionment tests. Pre-exit relocation is a common founder planning lever; the rules to clear are state-specific.
Does Oregon honor the federal §1045 rollover?
Because Oregon taxes 100% of the §1202 gain at the state level regardless of federal treatment, federal §1045 rollover may not provide state-level deferral. Not modeled by this calculator; consult a CPA for state-specific §1045 conformity.
Where do I report the §1202 adjustment on the Oregon return?
On the Oregon return, the federal §1202 exclusion is added back so the full gain is taxed at the state level. The exact return line varies by year and form revision; consult the current Oregon DOR instructions — do not assume line numbers carry across years.
Compare Oregon to other states
Same federal exclusion, different state rule. The 50-state grid colors each.