A Small Tax Change That Adds Up for Businesses

The City of Portland is increasing the Business License Tax exemption for the first time since 2007, an update that will help small businesses keep more of what they earn. Starting in 2026, the exemption increases from $50,000 to $75,000, and in 2027 it increases again to $100,000. For many businesses in the Central Eastside, that means less tax owed and more flexibility to reinvest in your operations, staff, and growth.

What this means:

• More businesses will pay less or no Business License Tax

• Existing businesses will keep more revenue on the front end

• Better alignment with Multnomah County’s $100,000 threshold

• Simpler reporting with fewer mismatched rules

• More breathing room for small businesses and sole proprietors

If you’re unsure how this impacts your business specifically, check in with your accountant or tax advisor as these changes roll out over the next two years.

The Central Eastside Industrial Council thanks Councilor Eric Zimmerman and Mayor Wilson for introducing this amendment. It is a shift that reflects today’s costs and helps businesses move forward.