Springfield, Oregon payroll tax starts January 1, 2027
Springfield, Oregon's 0.1% employer and 0.1% employee payroll tax applies to pay periods beginning on or after January 1, 2027. Who is covered, key dates.
Springfield, Oregon’s new city payroll tax applies to pay periods beginning on or after January 1, 2027. Employers with a taxable business location in city limits pay 0.1% of wages tied to that location and withhold another 0.1% from covered employees’ pay. Employer registration does not open until March 1, 2027, but employers must begin withholding for pay periods beginning on or after January 1, 2027.
What changes on January 1, 2027?
The Springfield City Council adopted the payroll tax ordinance on June 1, 2026. The tax has three parts, and the city describes 0.1% as $1 for every $1,000 of applicable wages or net earnings:
The tax at a glance
- 0.1% of applicable wages paid by employers, on wages tied to a taxable Springfield business location.
- 0.1% of applicable wages owed by employees, withheld by the employer through payroll.
- 0.1% of qualifying net earnings for self-employed people and independent contractors with a physical location in Springfield.
- One quarterly return from the employer reports both the employer and employee portions.
The city’s example: $50,000 in taxable wages, all subject to the Springfield tax, results in a $50 employee tax for the year, and the employer rate is also 0.1%, or $1 for every $1,000. An employer may elect to pay the employee portion instead of withholding it, according to the city.
Who has to pay it?
The test generally turns on the employer’s taxable Springfield business location, not simply where an employee lives or performs their work. The city’s program overview says employees who work from home, remotely or at temporary job sites “may be subject to the tax when their wages are associated with a taxable Springfield business location.”
In the city’s examples, a Springfield mailing address alone does not trigger the tax, while a physical business location inside Springfield city limits does. The FAQs walk through six of them:
| Situation | Tax applies? |
|---|---|
| Springfield employer, employee works in Springfield | Yes |
| Springfield employer, employee works from home outside Springfield | Yes |
| Outside employer, temporary job site in Springfield | No, per the city’s example |
| Outside employer, employee works from home in Springfield | No, per the city’s example |
| Springfield mailing address, no physical location in city | No, per the city’s example |
| Eugene mailing address, location in Springfield (such as Glenwood) | Yes |
The city calls these illustrative and says all of them are subject to Finance and Legal confirmation, “including situations involving multiple business locations or temporary offices.” If you run crews on Springfield job sites, have locations inside and outside the city, or keep a temporary office there, confirm your case with the Finance Department rather than relying on the table.
On what counts as wages, the city says the Springfield Payroll Tax Code defines them as compensation for services, “including certain noncash compensation and employee salary deferrals,” and that the ordinance excludes certain compensation, “including specified benefits, reimbursements, and other types of remuneration.” The city’s payroll tax page has listed the administrative rules, which give guidance on allocating wages among business locations, as coming soon, so check that page for them.
When are registration and the first return due?
- Applies to pay periods beginning on or after this date.
- Employers who register online get an account number when they finish.
- Employers who file paper returns get one after their first return has been processed.
- Covers January 1 to March 31, 2027, employer and employee portions together.
- For calendar-year filers, covering tax year 2027.
Registered employers must file quarterly returns “even when no tax is due for the reporting period.” The city says it will offer electronic and paper filing before the first deadline, and bulk filing and payment for authorized payroll providers and preparers. A mailed return counts as on time if it is postmarked on or before the filing deadline.
What should payroll do before January?
The real deadline is your first pay period that begins on or after January 1, 2027. The city’s example: a pay period that begins in December 2026 and ends in January 2027 is not subject to the tax, even if the check is issued in January, but a pay period beginning January 1, 2027, or later is.
Year-end W-2s need the new locality too. The city says to report local taxable wages in Box 18, the employee tax withheld in Box 19, and the locality code SPFLD in Box 20. Employers do not have to submit W-2 or 1099 forms to the city for this tax, though the city says it may add W-2 reporting requirements in the future.
For other employment rule changes taking effect in January, see our Compliance Watch, Issue 01. If you also have employees in California, our update on California’s January 1, 2027 minimum wage and exempt salary changes covers that state.
How VertiSource HR handles this for clients
For clients whose payroll and payroll tax we run, Springfield’s 0.1% employee withholding and 0.1% employer tax are set up in The VertiSource HR Cloud, the same connected system that runs each pay period, and we make sure both are in place before the first pay period beginning on or after January 1, 2027.
Primary sources: City of Springfield, Springfield Payroll Tax 2027: What to Know; City of Springfield, Springfield Payroll Tax; City of Springfield, Payroll Tax FAQs; City of Springfield, Springfield Payroll Tax Program Overview (updated October 14, 2026); City of Springfield, Springfield Payroll Tax Information and Implementation Timeline. Last reviewed November 6, 2026.
Questions employers ask
Do remote employees who live outside Springfield owe the tax?
We are based outside Springfield but send crews to job sites there. Do we owe it?
If an outside payroll provider runs our payroll, are we still responsible?
Disclaimer: This content is for general informational and educational purposes only and does not constitute legal, tax, accounting, or professional advice. Consult a qualified attorney or licensed advisor before making employment, payroll, or compliance decisions. VertiSource HR disclaims all liability for actions taken or not taken based on this material.
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