Eugene, Oregon has no sales tax. Oregon is one of a handful of states with no general sales or use tax, so the price on the shelf is the price you pay at the register. That holds for groceries, clothing, electronics, furniture, restaurant meals, haircuts, and professional services. A few narrow taxes do apply to specific purchases, hotel rooms and recreational marijuana being the ones most people actually notice, but nothing works like the broad sales tax you’d see in most other states.
Why There’s Nothing Added at the Register
Oregon has never adopted a general sales or use tax. The Oregon Department of Revenue puts it directly: the state “doesn’t have a general sales or use/transaction tax.”1Oregon Department of Revenue. Sales Tax in Oregon Revenue comes mostly from personal and corporate income taxes under Oregon Revised Statutes Chapter 316 and related chapters.2Oregon State Legislature. Oregon Revised Statutes Chapter 316 – Personal Income Tax
Because there’s no state sales tax, there’s no state framework for a city or county to add a local one on top. Eugene follows that pattern. No municipal sales tax applies to general merchandise or services, whether you’re shopping at Valley River Center or anywhere downtown.
Hotel Stays
The one bill where visitors to Eugene feel a real tax hit is lodging. Any stay shorter than 30 days in a hotel, motel, or short-term rental carries three layers of transient lodging tax.3City of Eugene. Eugene Code 3.770 – Transient Lodging Tax – Definitions
- City of Eugene: 4.5% of the room charge, under Eugene Code Section 3.772.3City of Eugene. Eugene Code 3.770 – Transient Lodging Tax – Definitions
- Lane County: 10% of the room charge, made up of a 5% base, a 3% additional tax, and a 2% tax earmarked for tourism facilities.4Lane County. Lane Code Chapter 4
- State of Oregon: 1.5% of the room charge.5Oregon Department of Revenue. Transient Lodging Tax
Combined, that’s 16% on top of your nightly rate. On a $150 room, roughly $24 per night in tax.6Eugene, OR Website. Transient Lodging Tax (TLT)
Recreational Marijuana
Cannabis is the other purchase in Eugene with a noticeable tax. The state charges 17% on the retail sale price of recreational marijuana, including flower, edibles, concentrates, and topicals.7Oregon State Legislature. Oregon Revised Statutes 475C.674 – Imposition of Tax on Retail Sale of Marijuana Items Eugene voters added a 3% local tax in November 2016 under Ordinance No. 20566.8City of Eugene. City Marijuana Tax The combined rate at any Eugene dispensary is 20%. Oregon law caps the local option at 3% and requires voter approval before any city or county can adopt it. The tax shows as a separate line on your receipt.
Medical cardholders are exempt from both pieces. If you have a valid Oregon registry identification card and present it at purchase, neither the 17% state tax nor the 3% local tax applies under ORS 475C.678.9Oregon Revised Statutes. Oregon Code 475C.678 – Exemption from Tax on Retail Sale of Marijuana Items
Gas at the Pump
Oregon doesn’t tax fuel as a percentage. It’s a flat per-gallon excise tax, already built into the posted price. In Eugene you’re paying $0.40 per gallon in state fuel tax on gasoline and diesel10Oregon Department of Transportation. Current Fuel Tax Rates and $0.05 per gallon in city tax, first adopted in 2003 under Eugene Code Section 3.483.11Eugene, OR Website. Local Gas Tax Together that’s $0.45 per gallon before federal fuel tax. Nothing itemizes at the pump because it’s all baked into the price you see.
New Bicycles Over $200
Oregon is the only state with a dedicated bicycle excise tax. Buy a new bike with a retail price of $200 or more and a flat $15 is added at checkout.12Oregon State Legislature. Oregon Revised Statutes 320.415 – Excise Tax on Retail Sale of Bicycles Used bicycles aren’t taxed at any price, and new bikes under $200 are also excluded. The seller must show the $15 as a separate line.13Oregon Department of Revenue. Bicycle Excise Tax
If You See a “CAT Surcharge” on a Receipt
Since 2020, Oregon has imposed a Corporate Activity Tax on businesses with more than $1 million in annual commercial activity in the state, at $250 plus 0.57% of taxable activity above that threshold.14Oregon Department of Revenue. Corporate Activity Tax The Department of Revenue distinguishes it from any transactional retail tax. Some Eugene businesses have chosen to add a small surcharge to receipts to offset their CAT liability, and Oregon law doesn’t prohibit the practice. A “CAT surcharge” line is a business passing along a cost, not a government tax collected at the register.
What You’ll Actually Pay
For almost everything you buy in Eugene, the price on the tag is the price at the register. The exceptions are narrow: hotel rooms at 16% combined, recreational marijuana at 20% combined, fuel built into the pump price, and new bikes over $200 at a flat $15. If you’re moving from a state with a 7-10% sales tax, the savings on daily purchases are immediate. The trade-off is that Oregon’s income tax rates are among the highest in the country, so the state collects on your paycheck rather than at checkout.