Multnomah County, OR Local Taxes & Fees: Business Tax Classification (2026)
Key Facts
- Tax rate
- 2.00% of county net income (post-2020)
- Prior rate
- 1.45% for tax years before 2020
- Minimum tax
- $100 per taxfiler, profit or not
- Late filing penalty
- 5%, +20% after 4 months
- Interest on unpaid tax
- 0.833%/month (10% per year)
- Administrator
- City of Portland Revenue Division
Summary
Multnomah County taxes partnerships, S corporations, LLCs, LLPs, family limited partnerships, estates and trusts as the liable taxfiler under its 2.00% business income tax, not the individual owners. Multnomah County Code § 12.100(A) makes the entity responsible for reporting all business income, while a $100 minimum tax applies even to unprofitable pass-throughs.
(A) Partnerships, S corporations, limited liability companies, limited liability partnerships, family limited partnerships, estates, and trusts are liable for the business tax and not the individual partners, shareholders, members, beneficiaries or owners. The income of these entities must include all income received by the entity including ordinary income, interest and dividend income, income from sales of business assets and other income attributable to the entity. For income purposes, a limited liability company is deemed to be the tax entity that includes the income of the limited liability company in its federal tax return if the limited liability company will be disregarded as a separate tax entity.
Full Breakdown
100(A) settles who owes it: partnerships, S corporations, limited liability companies, limited liability partnerships, family limited partnerships, estates and trusts are the taxfiler, not the individual partners, shareholders, members, beneficiaries or owners. The entity must report every dollar it receives, including ordinary income, interest, dividends and gains from selling business assets. An LLC that is disregarded on its federal return stays disregarded here too: its income is folded into whichever federal tax entity reports it. 100(B), if owners file a consolidated, combined or joint state or federal return, they must also file one combined county return, and income means the net income of that whole group before apportionment.
260 even when nothing was ever reported to the IRS or the Oregon Department of Revenue, so silence is not a defense. 45% for earlier years), with a $100 minimum owed by every taxfiler regardless of profit. 524, but only after the entity's own Chapter 12 return has actually been filed for the year.
Violations & Fines
Missing the filing or payment deadline draws a 5% penalty under § 12.700(A) for delays under four months, an added 20% at four months or more, and a 100% penalty of all affected years' tax if a taxfiler skips filing three years running. Unpaid tax accrues interest at 0.833% a month (10% annually) under § 12.710(A), and the Administrator may add a $500 civil penalty per violation for ignoring a 60-day compliance notice.
Frequently Asked Questions
Does an LLC or partnership pay Multnomah County business tax itself, or do the owners?
What is the current Multnomah County business income tax rate?
Can an LLC owner claim a personal deduction for county tax the LLC already paid?
What happens if a business never reports income to Multnomah County?
Sources & Official References
Other rules in Multnomah County
Compare Multnomah County to another location·View the Oregon local taxes & fees overview
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