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Lane Transit District (LTD). Employers are also required to withhold the Oregon statewide transit tax of 0.1% from the wages of (1) Oregon residents (regardless of where the work is performed) and (2) nonresidents who perform services in Oregon.
This tax isn't related to the Lane or TriMet transit payroll taxes. Transit payroll taxes are imposed on the employer based on the amount of payroll. The statewide transit tax is imposed on the wages of each employee, but the employer is responsible for withholding, reporting, and remitting the statewide transit tax.
To cover your federal taxes, saving 30% of your business income is a solid rule of thumb. According to John Hewitt, founder of Liberty Tax Service, the total amount you should set aside to cover both federal and state taxes should be 30-40% of what you earn.
The Oregon transit tax is a statewide payroll tax that employers withhold from employee wages. Oregon employers must withhold 0.1% (0.001) from each employee's gross pay.
What is the TriMet self-employment tax? The TriMet tax helps fund mass transportation in the TriMet District. This tax is applied to self-employment earnings of individuals doing business or providing services in the dis- trict. This includes portions of Multnomah, Clackamas, and Washington counties.
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Tax Rate Changes Tax PeriodRateCalendar Year 20200.0075Calendar Year 20210.0076Calendar Year 20220.0077Calendar Year 20230.00786 more rows
Taxes that provide operating revenue for TriMet are administered and collected by the Oregon Department of Revenue. Effective January 1, 2022, the tax rate increased to 0.7937%% of the wages paid by an employer and the net earnings from self-employment for services performed within the TriMet District boundary.
The current self-employment tax rate is 15.3 percent. You'll be able to deduct some of your business expenses from your income when calculating how much self-employment tax you owe.
The TriMet district serves portions of the counties of Multnomah, Washington, and Clackamas; it extends from Troutdale to Forest Grove east to west, and from Sauvie Island to Oregon City and Estacada north to south.
A good rule of thumb is to set aside about 30% of your income. While this might seem high, it accounts for self-employment taxes (FICA) in addition to your regular income tax.

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