Portland Expands Business Tax Relief to 10,000 More Small Companies
PORTLAND, Ore. — The Portland City Council unanimously approved a measure that increases the number of companies eligible for an exemption from the city’s business license tax (“BLT”).
Portland’s business license tax– a 2.6% levy on net income for all companies that operate in the city- made up about a quarter of the city’s $806 million in discretionary general fund spending this year.
The BLT’s current cap of $50,000 in gross receipts annually will increase to $75,000 in 2026 and $100,000 in 2027.
Here is how the city exemption changes over time:
| Tax year | Portland BLT exemption | County threshold | City revenue effect | What it means |
|---|---|---|---|---|
| 2025 | $50,000 | $100,000 | Baseline | City stays below county |
| 2026 | $75,000 | $100,000 | About $1.2 million | First phase of relief |
| 2027 | $100,000 | $100,000 | About $2.4 million total annually | City and county thresholds match |
Officials estimated that about 10,000 additional businesses will receive $200 to $300 in annual tax relief, and the city is projected to spend about $1.2 million in its first year and $2.4 million annually thereafter. It is aimed at independent contractors, start-ups, and mom-and-pop shops.
Sources: City of Portland Ordinance 192163 / Mayor Keith Wilson April 8 2026 release
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The city hopes the measure will help spur growth and create opportunities as it struggles to rebound from a years-long economic downturn, losing thousands of jobs annually.