Oregon has no general sales tax. The statewide rate is 0%, and no city or county adds a general sales tax on top of it, so the price on the shelf is the price you pay at the register.1Oregon Department of Revenue. Sales Tax in Oregon That covers groceries, clothing, electronics, furniture, and almost everything else you’d typically pick up in a store. A handful of specific purchases still carry their own targeted taxes, and it’s worth knowing which ones before you’re surprised at checkout.
Online Orders and Cross-Border Shopping
Online purchases shipped to an Oregon address are not subject to sales tax. The 2018 Supreme Court decision in South Dakota v. Wayfair lets states require out-of-state retailers to collect sales tax, but there’s nothing for Oregon to collect. The Department of Revenue confirms Wayfair has no practical effect on Oregonians buying online.1Oregon Department of Revenue. Sales Tax in Oregon
The same goes for driving across the border to shop. A Washington resident who buys a laptop in Portland pays no sales tax at the register. Your home state may technically require you to pay a use tax on out-of-state purchases when you bring them back, so the savings aren’t always as clean as they look for non-residents.
Purchases That Still Carry a Tax
Oregon layers targeted excise taxes on specific goods. These aren’t sales taxes, but from the buyer’s side they feel identical: you pay more than the sticker price.
Cigarettes and Tobacco
Cigarettes are taxed at $3.33 per pack of 20.2Oregon Department of Revenue. Cigarette Tax and Licensing Voters nearly tripled the previous $1.33 rate when they approved Measure 108 in 2020. Other tobacco products and electronic cigarettes carry separate tax obligations earmarked for public health programs.
Recreational Cannabis
Purchases at licensed retailers include a 17% state tax on the retail price, imposed on the consumer and collected at the point of sale.3OregonLaws. Oregon Code 475C.674 – Imposition of Tax on Retail Sale of Marijuana Items Local governments can add up to 3% on top, so the total at some dispensaries reaches 20%.
Motor Fuel
Gasoline and diesel carry a $0.40 per gallon state tax, effective since January 2024.4Oregon Department of Transportation. Current Fuel Tax Rates It’s built into the posted price at the pump rather than added at the register.
Bicycles
Oregon is one of the few states that taxes bicycle purchases. A flat $15 excise tax applies to every new bicycle sold at retail with a price of $200 or more, and the retailer collects it as a line item on your receipt.5Oregon Department of Revenue. Bicycle Excise Tax
Phone and 911 Charges
Every phone line or device capable of reaching 911 carries a monthly emergency communications tax of $1.25, plus $0.40 per month for the 988 Suicide and Crisis Lifeline.6Oregon Department of Emergency Management. Emergency Communications Tax Prepaid wireless customers pay it per retail transaction rather than monthly.
Buying a Car in Oregon
Vehicle purchases carry a tax that functions much like a sales tax under a different name. The Vehicle Privilege Tax is 0.5% of the retail price on vehicles sold by Oregon dealers.7OregonLaws. Oregon Code 320.405 – Tax for Privilege of Engaging in Business of Selling Motor Vehicles at Retail The tax is technically imposed on the dealer, but it usually appears as a line item on the buyer’s paperwork.
To be taxable, a vehicle must have a gross vehicle weight rating of 26,000 pounds or less, have 7,500 miles or fewer on the odometer, and have never been previously registered or titled in Oregon.8Oregon Department of Revenue. Vehicle Privilege and Use Taxes In practice, that targets new and nearly-new vehicles rather than used cars from private sellers.
A companion Vehicle Use Tax covers Oregon residents who buy a qualifying vehicle from an out-of-state dealer. The same 0.5% rate applies, and it’s due within 30 days of purchase, paid during registration with the Department of Transportation.9Oregon Department of Transportation. Oregon Vehicle Use Tax Information There is no credit for sales tax you may have paid to the other state, so a buyer who purchases from a dealer in a sales-tax state can end up paying both.8Oregon Department of Revenue. Vehicle Privilege and Use Taxes
Local Food and Lodging Taxes
A few Oregon cities impose their own local taxes on specific transactions. These come from municipal ordinances, not state law, so they only apply where they’ve been adopted.
Prepared Food
Ashland levies a 5% tax on prepared food and non-alcoholic beverages sold by restaurants, including takeout and delivery.10Ashland Municipal Code. Ashland Municipal Code 4.34.020 – Tax Imposed Cannon Beach charges a prepared food tax as well. Most Oregon cities have no food tax at all, so these are the exception.
Lodging
Oregon imposes a statewide transient lodging tax of 1.5% on the room charge for short-term stays.11Oregon Department of Revenue. Transient Lodging Tax Cities and counties set their own additional lodging rates on top, which vary widely, and the combined rate in tourist-heavy areas can be significant.
The Hidden Cost: Corporate Activity Tax
Oregon’s Corporate Activity Tax, enacted in 2019, is a gross receipts tax on businesses with more than $1 million in Oregon commercial activity. The rate is $250 plus 0.57% of taxable commercial activity above $1 million.12Oregon Department of Revenue. Corporate Activity Tax (CAT) The tax is imposed on businesses, not consumers, but Oregon law does not stop businesses from passing the cost along in higher prices. Some restaurants and hospitality businesses have added surcharges or adjusted menu prices in response.
Critics have called the CAT a hidden sales tax. Unlike a traditional sales tax, it cascades: a manufacturer pays it, then the wholesaler pays it on the same goods, then the retailer pays it again. That pyramiding can push prices up more than a straightforward sales tax at the same rate would.
What the 0% Rate Actually Saves You
For everyday shopping the advantage is real and straightforward. Groceries, clothing, electronics, furniture, and general retail purchases come with no tax added at checkout. The savings show up most on large purchases: a $1,500 laptop in Oregon costs roughly $100 to $150 less than the same purchase in a neighboring state with a combined rate of 7% to 10%.
Where the math changes is in the categories above. A pack of cigarettes, a cannabis purchase, a hotel room, a restaurant meal in Ashland, or a new car will all include some form of tax or surcharge. Transit district taxes in the Portland and Eugene metro areas are employer-paid payroll taxes rather than point-of-sale charges, so they don’t hit consumers directly at the register.13Oregon Department of Revenue. TriMet Transit Payroll Tax Oregon genuinely has no general sales tax; the state just taxes specific transactions instead, and knowing which ones apply to you is the difference between an easy checkout and an unwelcome surprise.