The Oregon gas tax is $0.40 per gallon on both gasoline and diesel, collected from fuel distributors rather than charged separately at the pump. That rate has held since 2024, the final step-up under the 2017 Keep Oregon Moving Act. Federal excise tax stacks on top, and a handful of Oregon cities add their own local fuel taxes on top of that.
What the $0.40 Rate Applies To
The state rate is the same $0.40 per gallon for gasoline, clear diesel, ethanol-blended gasoline, and biodiesel blends, regardless of the blend ratio.1Oregon Department of Transportation. Frequently Asked Questions: Fuels Tax The authority sits in ORS 319.020 for motor vehicle fuel and ORS 319.530 for use fuel, which is primarily diesel.2Oregon State Legislature. Oregon Code 319 – Motor Vehicle and Aircraft Fuel Taxes
Federal excise tax adds $0.184 per gallon on gasoline and $0.244 per gallon on diesel.3Oregon Department of Transportation. Current Fuel Tax Rates Before any local tax, then, a gallon of regular gasoline in Oregon carries at least $0.584 in combined state and federal tax, and diesel carries at least $0.644.
Aviation fuel is taxed separately and much lower. Aviation gasoline is $0.11 per gallon and jet fuel is $0.03 per gallon, rates that have not changed since January 2016.3Oregon Department of Transportation. Current Fuel Tax Rates
City Fuel Taxes Add More at the Pump
Where you fill up matters. Portland has the steepest local fuel tax at 10 cents per gallon on both gasoline and diesel.4City of Portland. Chapter 17.105 Motor Vehicle Fuel Tax Eugene charges 5 cents per gallon, dedicated to local street preservation.5City of Eugene. Local Gas Tax
Other Oregon cities with local fuel taxes include Tigard, Milwaukie, Springfield, Woodburn, Cottage Grove, Veneta, Troutdale, Reedsport, Coquille, Astoria, Warrenton, Canby, Newport, and Hood River, each at its own rate.1Oregon Department of Transportation. Frequently Asked Questions: Fuels Tax Salem has none. That difference is real money over a tank.
Where Oregon Gas Tax Revenue Goes
Oregon’s Constitution restricts fuel tax revenue to a narrow set of uses. Article IX, Section 3a requires that any tax on motor vehicle fuel be spent exclusively on the construction, reconstruction, improvement, repair, maintenance, operation, and use of public highways, roads, streets, and roadside rest areas.6FindLaw. Oregon Constitution Art IX 3a Fuel tax dollars cannot flow to the general fund. The only carve-outs are administrative costs, bond repayments, and certain recreational uses for taxes on campers and snowmobiles.
Revenue flows into the State Highway Fund and is split by formula: 24.38 percent to counties, 15.57 percent to cities, and roughly 60 percent to the Oregon Department of Transportation for state highway and bridge work.7Oregon State Legislature. Oregon Code 366.739 – Allocation of Moneys to Counties and Cities Generally Some funding packages use different splits. The Keep Oregon Moving Act, for instance, allocates 50 percent to ODOT, 30 percent to counties, and 20 percent to cities.8Oregon State Legislature. Background Brief – Roads and Highways
A lesser-known rule directs a small slice to walking and biking. Under ORS 366.514, ODOT and every city and county that receives highway fund money must spend at least 1 percent of those funds each fiscal year on footpaths and bicycle trails. Cities can skip the requirement if 1 percent amounts to $250 or less, counties if it amounts to $1,500 or less, and either can bank the funds in a reserve for up to 10 years rather than spending annually.9Oregon State Legislature. Oregon Code 366.514 – Use of Highway Fund for Footpaths and Bicycle Trails
Refunds for Off-Road Fuel Use
The gas tax is a road-use tax. Fuel burned for something other than driving on public roads qualifies for a refund. Eligible uses include running a stationary engine, operating a tractor, powering small equipment like chainsaws and lawn mowers, cleaning, and other commercial purposes off the highway.2Oregon State Legislature. Oregon Code 319 – Motor Vehicle and Aircraft Fuel Taxes Fuel used on private property or private roads qualifies, as does fuel used on non-highway roads for forest product removal under agreements with certain government agencies.
Dyed diesel is chemically marked for off-road use and is not taxed at the point of sale. Using dyed diesel on public roads is illegal.
If you paid tax at the pump on fuel you then used for an exempt purpose, file a refund claim with ODOT within 15 months of the purchase or invoice date.10Oregon Department of Transportation. Refunds Keep receipts and usage logs. Miss the 15-month window and the refund is gone, so farmers, loggers, and others who burn significant fuel off-road should build filing into a routine.
Electric and High-MPG Vehicles: OReGO or a Higher Registration Fee
Drivers of electric vehicles and highly efficient cars pay little or no gas tax, so Oregon collects from them another way. Two options exist.
The first is OReGO, a voluntary road usage charge program. Participants pay 2 cents per mile driven and receive a non-refundable credit for any state fuel tax paid at the pump, so they aren’t taxed twice.11Oregon Department of Transportation. OReGO: Oregon’s Road Usage Charge Program To enroll, the vehicle must be registered with the Oregon DMV, classified as a light-duty passenger vehicle, either fully electric or rated at 40 MPG or better by the EPA, and compatible with one of OReGO’s mileage-reporting methods (a telematics device or an odometer image capture system).12OReGO. Fuel Tax Credit
The second option is to skip OReGO and pay a higher registration fee. Effective December 31, 2025, those surcharges rose by $30 per year. Current two-year registration fees:13Oregon Department of Transportation. Vehicle Title, Registration and Permit Fees
- 40+ MPG vehicle, not enrolled in OReGO: $216 for two years
- Electric vehicle, not enrolled in OReGO: $376 for two years
- OReGO participant, any eligible vehicle: $86 for two years ($43 per year), plus 2 cents per mile
Whether OReGO saves money depends on annual mileage. At 10,000 miles a year, an OReGO driver pays $200 in per-mile charges plus $43 in registration, totaling $243. A non-OReGO EV owner pays $188 per year in registration ($376 over two years) with no per-mile charge. For low-mileage EV drivers, OReGO can cost more. For high-MPG gasoline vehicles, the fuel tax credit built into OReGO changes the math further because it offsets what you already pay at the pump.