The Oregon bike tax is a flat $15 excise charge on every new bicycle sold at retail for $200 or more, enacted under House Bill 2017 and in effect since 2018. It applies whether you buy in a shop or online, the seller is supposed to collect it at checkout, and the money funds bicycle and pedestrian infrastructure.1Oregon Department of Transportation. HB 2017: Overview
When the $15 Applies
A bike is taxable only if it meets all three conditions in ORS 320.400 and 320.415:2Oregon State Legislature. Oregon Code 320.400 – Definitions for ORS 320.400 to 320.490 and 803.203
- It is new, meaning it has never been owned by a consumer. Only the first retail sale counts.
- The retail price is $200 or more.
- It fits the statutory definition of “bicycle,” which covers human-powered bikes and electric-assisted bicycles as defined in ORS 801.258.
The amount is always $15. A $250 commuter and a $5,000 carbon road bike carry the same charge.3Oregon State Legislature. Oregon Code 320.415 – Excise Tax on Retail Sale of Bicycles Oregon has no general sales tax, so this is the only state-level tax on the purchase.
What’s Not Taxed
If a bike misses any of the three criteria, no tax is owed. In everyday terms, that means:
- Used bikes of any kind, whether sold by a shop, at a swap meet, or between individuals.
- Any new bike priced under $200, which filters out most children’s bikes and low-end models.
The statute also lists wheeled items that are not “bicycles” for tax purposes: trailer cycles and other bicycle attachments, skateboards, stand-up scooters, in-line skates, roller skates, strollers, carts, wagons, and durable medical equipment.2Oregon State Legislature. Oregon Code 320.400 – Definitions for ORS 320.400 to 320.490 and 803.203 A pull-behind kid trailer is not a taxable bicycle.
Note that e-bikes are included, not exempt. A new electric-assisted bicycle priced at $200 or more carries the $15.
How You Pay at the Shop
The tax is legally a liability of the buyer, but the seller must collect it at the time of sale and show it as a separate line item on your receipt.3Oregon State Legislature. Oregon Code 320.415 – Excise Tax on Retail Sale of Bicycles Once the $15 appears on your receipt, you’re done. The retailer handles the quarterly filing with the Department of Revenue.
Buying Online or Out of State
An online retailer that ships a qualifying bike to Oregon has the same collection duty as a local shop, and most major sites handle it automatically at checkout.4Oregon Department of Revenue. Bicycle Excise Tax
If no tax was collected, the obligation doesn’t go away. You have to report the purchase and pay the $15 directly to the Department of Revenue through Revenue Online by the 20th day of the month following the purchase.4Oregon Department of Revenue. Bicycle Excise Tax It is a small amount, but ignoring it can lead to penalties and interest that outstrip the original $15.
Where the Revenue Goes
After the Department of Revenue takes its administrative costs, the balance is transferred to the Multimodal Active Transportation Fund, which under ORS 367.093 provides grants only for bicycle and pedestrian projects such as multiuse paths, bike lanes, and footpaths.5Oregon State Legislature. Oregon Code 320.440 – Deposit of Revenue from Excise Tax on Bicycles Statewide, the tax generates roughly $833,000 a year on about 51,000 qualifying bike sales.6Oregon Department of Transportation. Oregon Community Paths Program The funds cannot be redirected to general road maintenance or motor vehicle projects.
No Federal Offset for Bike Commuting
If you were hoping a federal tax break might offset the $15, there isn’t one. The qualified bicycle commuting reimbursement that let employers provide up to $20 per month tax-free was suspended from 2018 through 2025, and Section 70112 of the One Big Beautiful Bill Act permanently eliminated it for tax years beginning after December 31, 2025.7Office of the Law Revision Counsel. 26 USC 132 – Certain Fringe Benefits Employer cash reimbursements for bike purchase, maintenance, repair, or storage now count as taxable wages. Workplace bike racks and shower facilities remain tax-free as working-condition fringe benefits. There is no active federal tax credit for buying an electric bicycle.