No, Oregon does not have a sales tax. It is one of five states with no general statewide sales tax, and unlike Alaska it also has no local general sales taxes, so everyday purchases—clothing, electronics, groceries, household goods—ring up at the sticker price anywhere in the state. A short list of specific purchases still carry their own taxes, and those are the ones worth knowing about before you shop, travel, or move a car across the state line.
Where You Will Still See a Tax at the Register
A few Oregon cities tax prepared food and drinks sold at restaurants, cafes, delis, and similar places. Ashland charges a 5 percent food and beverage tax on prepared foods and non-alcoholic drinks.1Ashland, OR. Your Taxes at Work Yachats imposes the same 5 percent rate on prepared food and beverage sales.2City of Yachats, OR. Prepared Food and Beverage Tax These taxes apply only to ready-to-eat items. Raw groceries from the supermarket are not covered.
If you stay in a hotel, motel, or short-term rental, expect a transient lodging tax on the bill. Ashland’s is 10 percent.1Ashland, OR. Your Taxes at Work Rates vary by city and county, generally running from about 3 percent to 10 percent, and each local government sets its own.
Taxes Built Into the Price
Oregon charges excise taxes on several specific products. These are not sales taxes, but they raise what you pay.
Cannabis
Recreational marijuana carries a 17 percent state tax on the retail price, applied at the point of sale and shown as a separate line on your receipt.3Oregon State Legislature. Oregon Revised Statute Chapter 475C – Section 475C.674 Some local governments add up to 3 percent on top of that, pushing the combined tax as high as 20 percent in certain areas.4Oregon Department of Revenue. Marijuana This is the most visible transaction-level tax most Oregon consumers encounter.
Tobacco
Oregon taxes cigarettes at a base statutory rate of 36.5 mills (about 3.65 cents) per cigarette, made up of a 29-mill primary tax and a 7.5-mill additional tax.5Oregon State Legislature. Oregon Revised Statutes Section 323.030 – Tax Imposed; Rate The tax is paid by distributors and built into the shelf price. Additional state taxes and fees apply beyond that base rate, and cigars, pipe tobacco, and chewing tobacco carry their own separate excise taxes.
Alcohol
Beer and wine carry state excise taxes of roughly 8 cents per gallon for beer and 67 cents per gallon for wine.6Oregon Liquor and Cannabis Commission. Alcohol Revenue Distilled spirits are different. Oregon is a control state, so the Oregon Liquor and Cannabis Commission is the exclusive importer and distributor. The state sets retail prices with a markup averaging about 105 percent above cost, and the revenue flows into state accounts rather than appearing as a separate tax line at checkout.
Gasoline and Diesel
Fuel is taxed per gallon through an excise tax paid by distributors and baked into the pump price. The current state rate is 40 cents per gallon.7Oregon Department of Transportation. Fuels Tax Updates Legislation passed in 2025 would raise that rate, but the measure has been referred to voters, and the 40-cent rate remains in effect during the referral.
Buying a Vehicle In or Out of State
A new car is the one large purchase where you will clearly pay a state-level tax. Oregon charges a 0.5 percent vehicle privilege tax on the retail price of new vehicles sold by Oregon dealers.8Oregon State Legislature. Oregon Revised Statute Chapter 320 – Miscellaneous Taxes The tax is imposed on the dealer, but it is routinely passed through to the buyer.
Buy a new vehicle outside Oregon and bring it in, and a separate 0.5 percent vehicle use tax applies. You must pay it before you can register or title the vehicle in Oregon.9Oregon State Legislature. Oregon Revised Statutes Section 803.203 – Proof of Payment of Taxes If you miss the deadline—payment is due within 30 days—interest accrues on the unpaid balance, and the Department of Revenue can issue a warrant to collect the amount owed along with penalties and interest.8Oregon State Legislature. Oregon Revised Statute Chapter 320 – Miscellaneous Taxes
Online Orders Shipped to Oregon
Online retailers do not collect sales tax on orders shipped to an Oregon address, because there is no Oregon sales tax to collect.10Oregon Department of Revenue. Sales Tax in Oregon The 2018 Supreme Court decision in South Dakota v. Wayfair, which lets states require out-of-state sellers to collect sales tax, has no practical effect on Oregon shoppers for that reason.
The exception is new vehicles. Buy one from an out-of-state dealer and bring it to Oregon, and the 0.5 percent vehicle use tax still applies.10Oregon Department of Revenue. Sales Tax in Oregon And when you book a hotel or rental car in another state through a travel site, you will generally be charged the taxes of the state where that hotel or vehicle sits, not Oregon’s.
Crossing the Border to Shop
Residents of Washington and other neighboring states often cross into Oregon to shop and avoid sales tax at home. One thing to keep in mind: Washington and most other sales-tax states also have a complementary use tax that technically requires residents to report and pay tax on items bought out of state for use at home. Enforcement against individual shoppers varies, but the legal obligation exists.
Why Oregon Has No Sales Tax
No constitutional provision prohibits a sales tax in Oregon. The state legislature has broad power to create taxes under the Oregon Constitution.11FindLaw. Oregon Constitution Art IX Section 1 What has kept a sales tax off the books is the ballot. Since 1947, Oregon voters have rejected sales tax proposals at least six times, including a 1993 measure that would have imposed a 5 percent sales tax to fund public education. The tradeoff is a state income tax among the highest in the country, with a top marginal rate of 9.9 percent.