If you live or run a business in Eugene, Oregon, taxes come in layers: Oregon has no general sales tax, but the city collects a community safety payroll tax, the Lane Transit District charges employers a separate payroll tax, Oregon imposes a statewide transit tax on wages, and Lane County bills property owners under Oregon’s assessed-value system.1Oregon Department of Revenue. Sales Tax in Oregon Each one has its own rate, its own filer, and its own deadline, and treating them as one bill is the fastest way to miss something.
Community Safety Payroll Tax
This is Eugene’s own tax, used to fund local emergency services. It has two pieces. Through June 30, 2026, employees earning above the minimum-wage threshold have 0.44% of total wages withheld, and employers pay a separate rate on total payroll.2City of Eugene. 2026 Instructions to Employee Detail Return The city’s employee detail instructions also show a reduced 0.30% rate tier, so check the current rate schedule when classifying workers.
Self-employed people and independent contractors owe the tax too, if they have a physical business location inside city limits.3City of Eugene, OR. Community Safety Payroll Tax
Who Actually Owes It
The trigger is the employer’s physical presence in Eugene, not where the employee lives or logs in from. Sole proprietorships, partnerships of any form, and LLCs taxed as sole proprietors or partnerships all count.4City of Eugene, OR. Employer Payroll Tax If your company has no physical location inside city limits but you have a remote worker who lives in Eugene, neither the business nor the employee owes the tax.3City of Eugene, OR. Community Safety Payroll Tax
Minimum-Wage Exemption
Workers earning at or below the Oregon minimum wage are not subject to the 0.44% employee withholding. The standard minimum wage for Lane County is $15.05 per hour through June 30, 2026, which annualizes to roughly $31,304 at full-time hours.5Oregon Bureau of Labor and Industries. Oregon Minimum Wage Workers at or below that figure keep the full wage even if they pick up occasional overtime.
Lane Transit District Payroll Tax
LTD imposes a separate payroll tax on employers and self-employed people operating within its service boundaries, which cover the Eugene-Springfield metropolitan area. For 2026, the rate is 0.80% (0.0080) of gross wages or net self-employment earnings for work performed inside the district.6Oregon Department of Revenue. Lane County Transit District Payroll Tax The older 0.0077 rate expired at the end of 2022.
This one is entirely employer-paid. Nothing comes out of the employee’s paycheck.7Lane Transit District. Payroll and Self-Employment Tax Information
Statewide Transit Tax
Oregon also charges a separate statewide transit tax that applies to essentially all workers in the state, Eugene included. The rate has been 0.1% of wages. The 2025 legislature passed an increase to 0.2% effective January 1, 2026, but that increase is subject to a voter referral, so the 0.1% rate remains in effect pending election results.8Oregon Department of Revenue. Statewide Transit Tax
Unlike the LTD tax, the statewide transit tax is imposed on employee wages, with the employer withholding and remitting. The two transit taxes are reported separately and are not the same obligation.
Lane County Property Taxes
Property taxes in the Eugene area are administered by Lane County under Oregon Revised Statutes Chapter 308. The county assessor sets each property’s real market value and then calculates an assessed value, and the assessed value is what drives your bill.9Oregon State Legislature. Oregon Revised Statutes Chapter 308 – Assessment of Property for Taxation Most Oregon homeowners pay on an assessed value well below what the house would sell for.
Assessed Value Versus Market Value
Measure 50 caps annual growth in assessed value at 3% per year for existing properties. In a market where prices have outrun 3% a year, the gap between assessed value and real market value grows wider over time. New construction or major improvements get a fresh assessed value calculated from a ratio comparing existing assessed values to market values for similar properties nearby.
Rate Limits
Measure 5 caps total property tax at $5 per $1,000 of real market value for education districts and $10 per $1,000 for general government (cities, counties, special districts). When combined levies in a tax code area push past those ceilings, rates get compressed to fit. Two Eugene homes with identical assessed values can end up with different effective rates because they sit inside different overlapping districts.
Payment Deadlines and Discounts
Lane County property taxes can be paid in a lump sum or in three installments:
- November 15: first third due, or the full amount to earn the 3% discount
- February 15: second third due
- May 15: final third due
Paying two-thirds by November 15 earns a 2% discount on the amount paid. If the 15th lands on a weekend or holiday, the deadline moves to the next business day. Bills under $40 cannot be split into installments. To qualify for any discount, all delinquent taxes, penalties, and interest from prior years must be paid in full first.10Oregon Department of Revenue. Property Tax Payment Procedure
Property Tax Deferral for Seniors and Disabled Homeowners
Qualifying homeowners can borrow from the state to cover their county property tax bill. The Oregon Department of Revenue pays the taxes directly to the county each November 15, and the loan accrues 6% simple interest annually. Repayment is generally deferred until the home is sold or the owner dies.11Oregon Department of Revenue. Oregon Property Tax Deferral for Disabled and Senior Homeowners
For 2026, household income must be at or below $70,000, counting all taxable and nontaxable income of applicants and any spouses living in the home during the prior calendar year. The property’s real market value must be below 150% of the county’s median residential value for owners who have lived in the home fewer than 17 years, with a minimum cap of $301,000 for 2026. Applications go to the county assessor by April 15; late applications are accepted through December 1 with a fee of $20 to $180, calculated as 10% of your most recent tax bill.
Filing and Paying the City Payroll Tax
Eugene’s community safety payroll tax is filed quarterly:
- First quarter: April 30
- Second quarter: July 31
- Third quarter: October 31
- Fourth quarter: January 31 of the following year
If a deadline hits a weekend or holiday, it rolls to the next business day.4City of Eugene, OR. Employer Payroll Tax Employers file separate returns for the employer portion and the employee portion; self-employed people file their own return.12City of Eugene, Oregon. Self-Employment Tax Each return needs its own payment.
The city encourages electronic filing through the MUNIRevs portal, which auto-calculates tax, penalties, and interest, accepts credit card and electronic check payments, and keeps your prior filings on record. It is also the city’s main communication channel with registered taxpayers. To get your account linked, email cspayrolltaxhelp@eugene-or.gov or call 541-682-5053. Paper forms for each tax type are available on the city’s website if you prefer to file by mail.13City of Eugene. Employee Payroll Tax
Filing the Lane Transit District Tax
The LTD payroll tax is not filed with the transit district. Oregon’s Combined Payroll Tax Reporting System lets employers report and pay LTD alongside unemployment insurance, workers’ benefit fund assessments, state withholding, the statewide transit tax, and Paid Leave Oregon contributions in a single filing with the Oregon Department of Revenue.14Oregon Department of Revenue. Withholding and Payroll Tax The city of Eugene’s community safety payroll tax is not part of that combined filing and still goes directly to the city.
Federal SALT Deduction
Eugene’s local taxes, Oregon state income tax, and Lane County property taxes can be deducted on your federal return if you itemize. For 2026, the state and local tax (SALT) deduction is capped at $40,400 for most filers, or $20,200 for married filing separately. That cap covers the combined total of income, property, and sales taxes claimed. A phase-out reduces the cap for filers with modified adjusted gross income above $505,000, cutting it by 30 cents per dollar over the threshold, with a floor of $10,000 regardless of income. Oregon’s income tax rates are among the highest in the country, and there is no sales tax to trade off against, so many Eugene residents will bump into the cap well before they finish adding up what they paid.