State guide · OR
Oregon sales tax and property tax
No sales tax for residents or visitors, a handful of narrow taxes in its place, and a property tax built on two ballot measures from the 1990s.
Facts read on official Oregon pages on · Checked by Radif Partners · How we calculate
- State sales tax
- None
- Local sales taxes
- None
- Groceries
- No state tax
- Clothing
- No state tax
- Median property tax
- $3,895
- Effective property rate
- 0.78% · #25 of 51
Oregon has no general sales tax and no general use tax, at the state or local level, so a $1,000 phone, a week of groceries or a winter jacket costs the shelf price for residents and visitors alike. What stands in its place is narrow. New cars pay a 0.5% vehicle privilege tax when bought from an Oregon dealer, or a matching use tax when bought from a dealer in another state. Hotel stays pay a 1.5% state transient lodging tax, which rises to 2.75% on January 1, 2027, plus the city or county lodging tax. Larger businesses pay the Corporate Activity Tax on their receipts, but it is not itemized on a receipt. Property tax carries more weight: the median owner paid $3,895 in 2024 on a $497,500 home (Census ACS), an effective rate of 0.78%, ranked 25 of 51. Under Measure 50, a home's taxable value grows by no more than 3% a year.
Total to pay
$100.00
Sales tax $0.00 · 0% of the price · Oregon has no statewide sales tax
| Price before tax | $100.00 |
| State tax · 0% | $0.00 |
| Local tax · not charged on this item | $0.00 |
| Total | $100.00 |
Rule applied: Oregon has no statewide sales tax. How this is calculated.
Sales tax in Oregon
The Department of Revenue states the rule without qualification: Oregon levies no general sales, use or transaction tax, and local governments do not levy one either. There is no tax holiday, because there is nothing to suspend, and residents who pay sales tax in another state cannot deduct it from their Oregon taxes. The calculator above therefore shows zero for every category bought in Oregon.
Three narrow taxes do reach consumers. The first, in place since January 1, 2018, is the 0.5% vehicle privilege tax on new vehicles with 7,500 miles or less, up to 26,000 pounds, never titled in Oregon. A $45,000 new SUV from an Oregon dealer carries $225. Buy the same car from a dealer in another state and the vehicle use tax at the same rate is due within 30 days and before titling, which is the only use tax Oregon has. A used car with more than 7,500 miles falls outside both.
The second is lodging. The state transient lodging tax is 1.5% on stays ending on or before December 31, 2026; from January 1, 2027, it becomes 2.75%, and receipts must show the extra 1.25% as a nature conservation fee. Cities and counties add their own lodging tax at rates they set. A $600 weekend pays $9 of state tax in 2026 and $16.50 in 2027, and a stay that starts in late December 2026 and ends in January pays the new rate on the whole stay. The third is the Corporate Activity Tax: since 2020, businesses pay $250 plus 0.57% of Oregon commercial activity above $1 million, a tax on the business that never appears as a line on a receipt.
What the state charges, item by item
| Item | State rate | Local tax | Rule |
|---|---|---|---|
| Most goods | none | no | Oregon has no general sales or use/transaction tax. It levies a 0.5% vehicle privilege tax (on dealers selling new vehicles) and a matching vehicle use tax on new vehicles bought out of state. |
| Groceries (food for home) | none | no | No general sales tax, so groceries are not taxed. |
| Clothing | none | no | No general sales tax, so clothing is not taxed. |
| Prescription drugs | none | no | |
| New vehicles (vehicle privilege tax / vehicle use tax) | 0.5% | 0.5% of the retail price of taxable vehicles (7,500 miles or less, 26,000 lb GVWR or less, never titled in Oregon); privilege tax on Oregon dealers, use tax on out-of-state dealer purchases, due within 30 days. | |
| State transient lodging tax | 1.5% | 1.5% for stays ending on or before December 31, 2026; 2.75% from January 1, 2027. Local lodging taxes are additional. |
Scheduled by law: January 1, 2027: State transient lodging tax (not a sales tax) rises from 1.5% to 2.75%; the extra 1.25% must appear on receipts as a 'nature conservation fee'. (2.75%)source.
Local sales taxes
Oregon has no local sales taxes: Local lodging tax rates are set by each city or county.
Sales tax holidays in 2026
Not applicable: Oregon has no general sales tax.
Worth knowing about Oregon sales tax
- Oregon has no general sales or use tax; the only use tax is the vehicle use tax on new vehicles bought out of state, which must be paid before titling. source
- The 0.5% vehicle privilege tax and vehicle use tax both began on January 1, 2018. source
- Corporate Activity Tax (since 2020): $250 plus 0.57% of Oregon taxable commercial activity above $1 million, paid by the business, not itemized as a sales tax. source
- Businesses must register for the CAT within 30 days of reaching $750,000 of Oregon commercial activity in a year. source
- The state lodging tax is 1.5% through 2026 and 2.75% from January 1, 2027; stays that start in 2026 and end in 2027 pay the new rate on the whole stay. source
- Oregon law does not let residents reduce Oregon taxes for sales tax paid in another state. source
Property tax in Oregon
Two voter measures shape every Oregon tax bill. Measure 5, from 1990, caps operating taxes at $5 per $1,000 of real market value for schools and $10 per $1,000 for general government. Measure 50, from 1997, gave each property a maximum assessed value that can grow by no more than 3% a year unless the property changes, through a new structure, an improvement or a partition. The tax is charged on the lower of real market value and maximum assessed value, and for many long-held homes that is the capped figure. When a bill would break the Measure 5 limits, taxes are compressed, local option levies first.
More than 1,200 taxing districts levy on top of those rules, and county assessors value property and collect. In fiscal 2025-26, taxes averaged $17.52 per $1,000 of assessed value but only $9.40 per $1,000 of real market value, which shows how far the cap has pulled assessed values below the market. A home with an assessed value of $250,000 would pay about $4,380 at the average rate. At the Census ratio of 0.78%, a $500,000 home pays about $3,915. Small projects, under $18,200 in a year or $45,000 over five years, do not lift the cap.
Oregon has no homestead exemption and no exemption based on age or income alone. Seniors and disabled owners with household income up to $70,000 in 2026 can defer instead: the state pays the county each November 15 and records a lien that accrues 6% simple interest, applied for with the county assessor from January 1 to April 15. Bills are due November 15, with a 3% discount for paying in full and 2% for paying two-thirds; otherwise thirds fall on November 15, February 15 and May 15. Value appeals go to the county Property Value Appeals Board by December 31.
Property tax on a home in Oregon
Typical bill per year
$3,895
| Per month | $325 |
| Median effective rate in Oregon | 0.78% |
| Median bill paid | $3,895 |
Census median ratio; your county, city and school district set the real levy.
| Census figure | Oregon |
|---|---|
| Median home value (owner-occupied) | $497,500 |
| Median real estate taxes paid | $3,895 |
| with a mortgage | $4,023 |
| without a mortgage | $3,636 |
| Effective rate (tax ÷ value) | 0.78% |
| Rank by effective rate (1 = highest) | 25 of 51 |
| Rank by median bill | 15 of 51 |
How the taxable value is set
Each property is taxed on the lesser of its real market value (RMV) and its maximum assessed value (MAV). Under Measure 50 (1997) MAV can grow no more than 3% a year unless the property changes (new structure, improvement, partition). Measure 5 (1990) caps operating taxes at $5 per $1,000 of RMV for schools and $10 per $1,000 for general government. Who levies the tax: local only: more than 1,200 local taxing districts (counties, cities, school districts, special districts); county assessors value most property and collect the tax
Payment calendar: Due November 15. Full payment by November 15 earns a 3% discount and two-thirds payment a 2% discount; otherwise thirds are due November 15, February 15 and May 15.
Other property tax relief
- Senior and Disabled Property Tax Deferral. The state pays the county taxes each November 15 and places a lien accruing 6% simple interest. 2026 household income limit $70,000; RMV minimum cap $301,000. Apply to the county assessor January 1-April 15 (late until December 1 with a fee). source
- Disabled Veteran or Surviving Spouse Exemption. Exempts a portion of the homestead's assessed value for disabled veterans and surviving spouses or registered domestic partners. source
- Active-Duty Military Exemption. Deployed Oregon National Guard or Reserve members may exempt part of their primary residence's assessed value. source
Worth knowing about Oregon property tax
- In FY 2025-26 property taxes imposed averaged $17.52 per $1,000 of assessed value and $9.40 per $1,000 of real market value. source
- When Measure 5 limits are exceeded, taxes are 'compressed': local option levies are reduced first. source
- Minor construction under $18,200 in one year or $45,000 over five years doesn't trigger an exception to the 3% MAV cap; those thresholds are CPI-indexed after 2024. source
- Household furnishings, personal belongings, automobiles, crops and business inventories are not subject to property tax. source
- Value appeals go to the county Property Value Appeals Board and must be filed by December 31. source
- Local option taxes are limited to five years for operations and ten years for capital construction. source