In May 2020, the voters in the greater Portland area approved a measure to raise taxes for supportive housing services for people experiencing homelessness or at risk of experiencing homelessness.  The program is funded by a 1% marginal tax on taxable income of more than $125,000 for individuals and $200,000 for couples filing jointly.  Businesses pay a 1% tax on profits when they have gross receipts of more than $5 million.  The tax is effective for years beginning on or after January 1, 2021 and are due on April 15th following the year-end.  Additional resources can be found at: Metro SHS Tax


The tax applies to partnerships/LLCs, C corporations, S-Corporations and estates/trusts.  Sole proprietorships are not subject to the business income tax.  The tax is based on net income from the business within the Metro’s jurisdiction (the District) that have over $5 million in gross receipts (both within and without the District).  The tax is administered by the City of Portland Revenue Division.  If all business isn’t within the District, income from both within and without the District must be apportioned to the Metro using the City of Portland methodology (see apportionment section at this link Revenue Apportionment ).  The company will need to provide the amount of revenue within the District based on this apportionment methodology.

Businesses within the District are required to provide Metro withholdings for employees for 2022.

The owners of the business can generally take a deduction on their personal Metro return.  When the business provides a K-1 to their owner’s, they must provide information to the owners to compute that deduction.

  1. Statement the business was subject to the Metro District tax and file a return.
  2. The Metro District apportionment percentage if all of the business is not within the District. Otherwise the apportionment is 100%.
  3. The owner’s share of the business income (while this is not required, the owner would need to add together their share of K-1 items of income and deduction).

Each owner’s deduction would be equivalent to their share of the amount of business income on their K-1 times the apportionment percentage.  The deduction can’t be less than zero.

Estimated payments

Taxpayer with tax owed of $1,000 or great just make estimated taxes payments starting in the 2022 tax year.  Individuals can have their employer withhold a sufficient amount as opposed to paying estimates.  There are no penalties or interest if 2021 estimates were not made.

Determining if you are within the District

You can use this online resource to determine whether you are locating within the District >> Address boundary lookup .


Personal income in excess of $125,000 for individuals and $200,000 for couples filing jointly would be subject to the Metro SHS tax.  The starting point is your Oregon taxable income.  If you were a resident within the District for the fully year, your Oregon taxable income in excess of the limits will be taxable on your District return.

If you were a part-year resident, or if you were a non-resident that had District sourced income, special rules apply to report your Metro District taxable income. See the FAQs on >>  Metro SHS Tax for extra resources.

For a non-resident, only income earned or sourced within the Metro District is subject to the Metro SHS tax when you sourced income exceeds the filing thresholds.

Example: If you live in Salem, which is outside the Metro District, and had $250,000 of taxable income, of which $200,000 is derived from your work within the Metro District, only the $200,000 sourced to the Metro District is subject to the tax. If you are single, your tax would be based on the $200,000 less the $125,000 single filing income exemption.  Therefore the tax would be $750 ($75,000 times 1%).

To prevent double taxation at both the entity level and the individual level, the individual can take a deduction on their Metro District return for income that was subject to the tax by a business that you receive a K-1 from.  The K-1 should provide you information to compute that deduction if they were subject to the tax (see discussion above in the Business section).  Additionally, if you paid taxes in another state and claim an other-state tax credit on your Oregon return, you can also compute and take a tax a credit on your Metro District return.