On November 3, 2020, Multnomah County voters approved a measure to establish a tuition-free preschool program. This program is funded by a personal income tax, which went into effect January 1, 2021. Preschool For All (PFA) will give 3 and 4 year olds in Multnomah County access to free, high-quality, developmentally appropriate, culturally responsive preschool experiences. The program is slated to grow over time, increasing the number of children and families that it serves each year. Families will be able to apply for slots in early 2022 and preschoolers will begin learning in September of 2022. All families in Multnomah County will be eligible to apply and families who currently have the least access to high-quality preschool will be prioritized for the first-available slots. 

The PFA program is funded by a personal income tax of 1.5% on taxable income over $125,000 for individuals and $200,000 for joint filers, and an additional 1.5% on taxable income over $250,000 for individuals and $400,000 for joint filers. The rate will increase by 0.8% in 2026. Residents of Multnomah County will have 100% of their Oregon Taxable Income subject to the tax thresholds. For non-residents of Multnomah County, income sourced within the County will be subject to the tax thresholds. Please refer to our FAQ for further clarification. 

Multnomah County employers are required to withhold on behalf of employees for the Preschool For All Personal Income Tax. Employers are required to offer in writing to withhold for employees as soon as their payroll system is capable in 2021. Withholding is mandatory in 2022. Employers should automatically withhold for employees making over $200,000 per year. Employees may elect to opt in or out of withholding based on their individual tax situation.

The City of Portland Revenue Division will be collecting the tax on behalf of Multnomah County for the Preschool For All Personal Income Tax. All payment and filings should be sent to the City of Portland through their Portland Revenue Online (PRO) system. The system will be ready for remittance of the Preschool For All Personal Income Tax on April 1, 2021. Employers and individuals will not be able to create a PFA account until after this date. 

For questions about the Preschool For All Personal Income Tax administration, please contact the tax administrator at the City of Portland Revenue Division: PFA.Tax@portlandoregon.gov or 503-865-4748.

Additional documents will be made available in March 2021: Tax calculator, employer letter, letter to employees, employer handbook, opt in/out form and annual filing form.