Quick Answer: Oregon uses a three-tier minimum wage system in 2026: $16.45 per hour in the Portland metro area and $15.55 per hour across the standard counties that make up most of the state. A lower non-urban county rate — commonly reported at $14.45 per hour — also exists under Oregon law, though only the Portland and standard figures can be confirmed against current state data (see the FAQ below for details). Oregon has no tip credit — tipped workers must be paid the full minimum wage in cash, on top of any tips they earn. Rates are adjusted annually every July 1.
- Portland metro: $16.45/hr (effective July 1, 2026)
- Standard (most of state): $15.55/hr (effective July 1, 2026)
- Non-urban (rural): reported at ~$14.45/hr, not independently confirmed
- No tip credit — tipped workers get full minimum wage plus tips
- Annual salary, full-time (Portland): $34,216
- Annual salary, full-time (standard): $32,344
Oregon minimum wage is unique among US states for its three-tier system, which divides the state into three regions based on urbanization. The system was established by Senate Bill 1532 in 2016 and is administered by the Oregon Bureau of Labor and Industries (BOLI).
What Is the Oregon Minimum Wage in 2026?
Oregon's minimum wage varies by region:
- Portland metro area: $16.45/hr — applies to employers within the urban growth boundary of the Portland metropolitan service district.
- Standard counties: $15.55/hr — applies to most of the state, including Salem, Eugene, Bend, and Medford.
- Non-urban counties: reported at $14.45/hr, applying to rural counties including Baker, Coos, Crook, Curry, Douglas, Gilliam, Grant, Harney, Jefferson, Klamath, Lake, Malheur, Morrow, Sherman, Umatilla, Union, Wallowa, and Wheeler. This figure is widely cited but could not be independently verified against our source data at the time of writing — employers and workers in these counties should confirm the current rate directly with BOLI before relying on it for payroll.
Oregon's three-tier minimum wage was established by SB 1532 (2016), which created separate rates for the Portland metro area, non-urban counties, and the rest of the state. All three rates are adjusted annually for inflation based on the Consumer Price Index.
Oregon Minimum Wage by Region (2026)
| Region | Hourly Rate | Annual Salary (40 hrs/wk) |
|---|---|---|
| Portland metro | $16.45 | $34,216 |
| Standard | $15.55 | $32,344 |
| Non-urban | ~$14.45 (unconfirmed) | ~$30,056 (unconfirmed) |
Source: Oregon Bureau of Labor and Industries, effective July 1, 2026. The non-urban row reflects a commonly reported figure that has not been independently verified against our own data feed; confirm with BOLI if it applies to your county.
Oregon Minimum Wage Pay Period Examples
Because Oregon's rate depends on region, two workers doing the identical full-time job on opposite sides of the same metro boundary can take home noticeably different paychecks. Here's what a standard 40-hour week looks like at each confirmed rate:
- Standard rate ($15.55/hr): $622.00/week, $1,244.00 biweekly (80 hours), roughly $2,695.33/month, and $32,344.00/year at 2,080 hours.
- Portland metro rate ($16.45/hr): $658.00/week, $1,316.00 biweekly, roughly $2,851.33/month, and $34,216.00/year.
The gap between the two comes out to exactly $36 more per week in Portland ($16.45 − $15.55 = $0.90/hr × 40 hours), which compounds to $1,872 more per year for the same full-time schedule — the entire difference is attributable to the $0.90/hr metro differential. A part-time worker putting in 25 hours a week would see a smaller but still meaningful gap: $388.75 weekly at the standard rate versus $411.25 in Portland, a difference of $22.50 a week or roughly $1,170 a year.
Oregon Tipped Minimum Wage
Oregon does not allow a tip credit. Employers must pay the full minimum wage — $16.45/hr, $15.55/hr, or the non-urban rate depending on the region — in cash to all employees, including servers, bartenders, and other traditionally tipped workers. Tips are entirely on top of the full minimum wage. This makes Oregon one of the best states for tipped workers.
Consider a bartender working a 30-hour week in Salem at the standard $15.55/hr rate. Under Oregon law, the employer owes $466.50 in wages for that week ($15.55 × 30 hours) no matter how much the bartender earns in tips — tips are additional income on top, never counted toward meeting the minimum wage. Compare that to a tip-credit state like Virginia, where the tipped minimum wage is just $2.13/hr: an employer there only has to guarantee $63.90 in direct wages for the same 30 hours, topping up pay only if tips don't bring the worker's total up to Virginia's $12.77/hr standard rate. In Oregon, that top-up calculation never comes into play, because the full wage is guaranteed in cash from the first hour worked.
How Oregon Compares to Washington
Oregon and Washington are neighbors with very different minimum wage systems. Washington has a single statewide rate ($17.13/hr) that is higher than any of Oregon's confirmed rates. However, Washington allows cities to set higher rates (Seattle at $20.76/hr for large employers), while Oregon does not — Portland cannot set its own minimum wage above the state's Portland metro rate. The result is that minimum wage workers in Portland earn $16.45/hr, while workers across the Columbia River in Vancouver, WA earn $17.13/hr — a $0.68/hr difference for workers in the same metro area.
Over a full-time year, that $0.68/hr gap adds up: a Portland worker clocking 2,080 hours a year at $16.45/hr earns $34,216, while the same hours in Vancouver at Washington's $17.13/hr rate come to $35,630.40 — a difference of about $1,414 a year for identical full-time work, based solely on which side of the river the job happens to be on. Seattle's $20.76/hr large-employer rate pushes the gap even further; at $4.31/hr above Portland's rate, it's a reminder of how much further Washington's city-level flexibility can push wages compared to Oregon's state-capped system.
Frequently Asked Questions
What is Oregon's minimum wage in 2026?
Oregon's minimum wage in 2026 is $16.45/hr in the Portland metro area and $15.55/hr across the rest of the state's standard counties, both effective July 1, 2026. A lower rate also applies in non-urban counties, though that figure could not be independently confirmed against current state data (see below).
What is the minimum wage in Portland, Oregon?
Portland's minimum wage is $16.45/hr, effective July 1, 2026 — $0.90/hr higher than Oregon's standard statewide rate. This is set by the state's Portland metro tier, not a separate city ordinance; Portland itself has no authority to set its own minimum wage independent of the state's regional system.
Does Oregon allow employers to pay tipped workers less than minimum wage?
No. Oregon has no tip credit, so tipped employees — servers, bartenders, delivery drivers — must receive the full applicable minimum wage in cash from their employer, with tips paid entirely on top. This differs from states like Virginia or Mississippi, where employers can pay a lower direct wage and count tips toward the difference.
When does Oregon's minimum wage increase next?
Oregon's minimum wage adjusts every July 1, tied to inflation as measured by the Consumer Price Index, under the framework set by SB 1532. The current $16.45/$15.55 rates took effect July 1, 2026; the next adjustment is expected July 1, 2027, though the exact figure isn't set until closer to that date.
Is Oregon's minimum wage higher than California's?
No. California's statewide minimum wage is $16.90/hr, higher than both of Oregon's confirmed rates. Oregon's Portland metro rate of $16.45/hr trails it by $0.45/hr, while Oregon's standard rate of $15.55/hr trails California's by $1.35/hr.
Is the reported $14.45/hr non-urban Oregon rate accurate?
We can't fully confirm it. Oregon's minimum wage framework has historically included a third, lower tier for non-urban counties in addition to the Portland metro and standard rates, and $14.45/hr is the figure commonly reported for 2026. However, our verified data source only confirms the Portland metro and standard rates directly, so we're flagging the non-urban figure as unconfirmed rather than stating it as fact. If you live or operate a business in one of Oregon's non-urban counties, confirm the current exact rate with BOLI before using it for payroll.
Related: Washington Minimum Wage Guide · Tipped Minimum Wage Explained · Oregon Minimum Wage Data Page
