Tax in Oregon: a complete guide
Are you considering moving to Oregon or improving your knowledge of the state's different tax responsibilities? Get started with this Oregon tax guide.
Oregon state income tax
Oregon has a graduated state income tax system. The rates range between 4.75 percent and 9.90 percent, with the tax you pay based on your taxable income.
These ranges are broken down as follows for single filers:
|Oregon taxable income||Tax rate|
For those who are married and filing jointly, the ranges are as follows:
|Oregon taxable income||Tax rate|
|$250,001 and over||9.90 percent|
It’s also important to note local jurisdictions in Oregon may also collect local income taxes.
Oregon also has a 6.90 to 7.60 percent corporate income tax rate.
If compiling and filing your taxes is an area you struggle with, a financial advisor can help. They can take a deep dive into your finances and develop a tax strategy that meets your needs and could reduce your tax liability and save you money.
Oregon sales tax
Oregon is one of a handful of states in the US that does not have a general sales tax or use tax. Local jurisdictions or municipalities also do not levy a local sales tax.
Instead, the Oregon legislature generates revenue through higher income and property taxes.
Oregon property tax
According to data from the U.S. Census Bureau, the average American household spends $2,690 on real estate property taxes.
As mentioned, property tax is an important source of revenue for the state.
In Oregon, the various counties collect 0.91 percent of a property’s value in taxes yearly. Although, this can be higher or lower depending on where you live in the state.
Similar to other states, Oregon property taxes are assessed, calculated, and collected on a county level.
Oregon motor tax
Despite not having a sales or use tax, Oregon levies a vehicle use tax for all new vehicles purchased outside the state. You must pay this tax before you can register or title your new vehicle.
When purchasing a vehicle, you must also factor in the fuel cost. Oregon does impose a fuel tax, with use fuel coming in at $0.38 per gallon. Use fuel is described as “ premium diesel, biodiesel, and any fuel other than gasoline used to propel a motor vehicle on public roads.”
Oregon estate tax
Oregon does impose estate and inheritance taxes in the form of a transfer tax.
Oregon estate tax is tiered, with the tax rate increasing in line with the estate's value. Here is a breakdown of the tiers:
|Estate value||Tax rate|
|Up to $1 million||0 percent|
|$1 million - $1.5 million||10 percent|
|$1.5 million - $2.5 million||10.25 percent|
|$2.5 million - $3.5 million||10.50 percent|
|$3.5 million - $4.5 million||11 percent|
|$4.5 million - $5.5 million||11.50 percent|
|$5.5 million - $6.5 million||12 percent|
|$6.5 million - $7.5 million||13 percent|
|$7.5 million - $8.5 million||14 percent|
|$8.5 million - $9.5 million||15 percent|
|Over $9.5 million||16 percent|
This is imposed when assets are transferred from an estate to heirs and beneficiaries. The purpose and filing requirements for both taxes are the same. However, if the estate owner's death occurred before January 1, 2012, heirs must complete an “Inheritance Tax Return.” If the death occurred after this date, they must complete an “Estate Tax Transfer Return.”
It’s also important to remember federal estate tax also applies if your estate is above a certain threshold ($12.92 million in 2023).
Oregon retirement tax
Oregon is considered relatively tax-friendly when it comes to retirees.
Unlike some states, Oregon taxes retirement income from savings accounts such as a 401(k) and IRA plans. This is calculated on the state income tax system.
Income from Social Security is not taxed.
While the state does boast a range of benefits for potential retirees, from a mild climate to picturesque scenery and outdoor activity opportunities, a higher cost of living is something potential retirees need to be prepared for.
For further tax guidance and to ensure you’re not paying more tax than you need to, it’s wise to speak to an expert. A financial advisor can help you handle all your tax queries and ensure you’re not paying more tax than needed.
Senior Content Writer
Rachel is a Senior Content Writer at Unbiased. She has nearly a decade of experience writing and producing content across a range of different sectors.