Updated October 27, 2026 from live rates
Where to keep cash in Oregon
Oregon’s top income tax rate is 9.90%. At that rate and 37% federal, a 1-year Treasury bill at 4.50% keeps the most: about $7,088 a year on $250,000 after tax, versus $13 in a default brokerage sweep. A CD or savings account would need to pay 5.34% to keep as much as a 1-year Treasury bill at 4.50%.
Why Treasuries win in Oregon
Savings accounts, CDs and most money funds pay interest that Oregon taxes at up to 9.90%. Treasury bills don’t. So a Treasury bill paying 4.50% keeps what a fully taxable account paying 5.34% would, for a top-bracket Oregon resident. Today the best 1-year CD we track pays 4.65% and the best savings account 3.55%.
Municipal money funds in Oregon
We don’t list a money fund that holds only Oregon municipal debt. A national municipal fund is free of federal tax but generally taxed by Oregon; for a top-bracket resident it needs at least 3.15% to beat a 1-year Treasury bill.
Oregon taxes on cash, in brief
- Top income tax rate: 9.90%. Your own rate may be lower; change it above.
- Interest on U.S. Treasury bills, notes and bonds: exempt from state and local income tax, taxed federally.
- Savings accounts, CDs and prime or government money funds: taxed by Oregon, except the share of a fund’s income that comes from U.S. Treasuries.
- Some Oregon cities or counties also levy a local income tax. Where it covers interest, Treasuries are exempt from it too, which widens their edge.
Questions
Is Treasury bill interest taxed in Oregon?
No. Interest on U.S. Treasury bills, notes and bonds is exempt from state and local income tax under federal law, so Oregon doesn’t tax it. It is still subject to federal income tax. Interest from savings accounts and CDs is taxed by Oregon at up to 9.90%.
Where should I keep cash in Oregon?
At Oregon’s top rate and 37% federal, a 1-year Treasury bill keeps the most after tax today (4.50%). The answer depends on your brackets; the calculator on this page updates for yours.
What rate does a CD need to beat Treasury bills in Oregon?
At Oregon’s top rate and 37% federal, a CD or savings account needs at least 5.34% to keep as much as a 1-year Treasury bill paying 4.50%.
Rates: each provider’s own page and the U.S. Treasury, October 27, 2026. State rates: Tax Foundation, 2026 (top single-filer rate; local taxes not included). General information, not tax advice. Other states →