Oregon does not have a wealth tax in the usual sense of the term. There is no annual levy on your net worth, no yearly bill based on the total value of your assets. What Oregon does have is a cluster of other taxes that reach accumulated wealth from different angles: an estate tax that kicks in at just $1 million, a top income tax rate of 9.9%, and Portland-area surcharges that can push a high earner’s combined marginal rate close to 14%. Proposals for a true net worth tax have surfaced in past sessions but have not become law.
Has Oregon Ever Proposed a True Net Worth Tax?
Yes. House Bill 2431, introduced in a prior session, would have taxed Oregon residents whose total global net worth exceeded $10 million, counting international stock holdings, real estate, luxury goods, and other assets. It did not pass. A review of the 2026 regular session shows no new net worth tax proposal on the docket.1Oregon State Legislature. 2026 Regular Session Bill Selection The appetite exists in parts of the legislature, but valuing illiquid assets like private businesses and art collections remains a practical barrier.
So when Oregonians talk about a “wealth tax,” they are usually talking about the taxes that already exist and function like one. Those are worth understanding in order.
The Estate Tax: Oregon’s Main Tax on Accumulated Wealth
Oregon requires an estate tax return whenever a deceased person’s gross estate reaches $1 million. That is one of the lowest filing thresholds in the country.2Oregon Revised Statutes. Oregon Code 118.160 – When Tax Return Is Required The taxable estate includes everything the person owned at death: real estate, bank accounts, investment portfolios, life insurance proceeds, and retirement accounts. Non-residents owe the tax too if they held real property or tangible personal property located in Oregon.3Oregon State Legislature. Oregon Revised Statutes 118.010 – Imposition and Amount of Tax in General
Rates begin at 10% on amounts above the $1 million threshold and climb through brackets to 16% on amounts above $9.5 million.3Oregon State Legislature. Oregon Revised Statutes 118.010 – Imposition and Amount of Tax in General A $2 million estate owes $50,000. A $5 million estate owes roughly $367,500. Families who built equity in Portland-area real estate without ever thinking of themselves as wealthy can land squarely inside the brackets.
The executor files Oregon Form OR-706 and pays within 12 months of the date of death. Miss that deadline and the state adds a 5% delinquency penalty. If the return runs more than three months late, another 20% failure-to-file penalty stacks on, for 25% of the tax owed. Fraud triggers a 100% penalty.4Oregon State Legislature. Oregon Revised Statutes Chapter 118 – Estate Tax
No Portability Between Spouses
Oregon’s estate tax has a quirk that catches many couples. There is no portability. Under federal rules, a surviving spouse can inherit the deceased spouse’s unused exemption, effectively doubling the shelter. Oregon does not allow this. When the first spouse dies, that $1 million exemption is either used or lost. The survivor still gets only their own $1 million exemption at death.5Oregon State Legislature. Overview of Oregon’s Estate Tax Credit shelter trusts and similar structures exist to preserve both exemptions.
No State Gift Tax
Oregon imposes no state-level gift tax. Lifetime gifts of any size create no Oregon tax obligation, though federal gift tax rules may still apply. The planning implication is direct: assets transferred before death are out of the Oregon estate. An $800,000 home gifted during life reduces the Oregon estate by the full amount and may drop the total below the $1 million filing threshold entirely.
Pending Reform: SB 1511
SB 1511 is currently in a House committee during the 2026 session. It would replace the $1 million exclusion with a $2.5 million deduction, adjust the rate structure, and index the deduction for inflation going forward. If enacted, it would apply to estates of people dying on or after January 1, 2027.6Oregon State Legislature. SB1511 2026 Regular Session Many estates built primarily on home equity would fall out of the tax entirely. Whether the bill passes or not, its advancement signals that the $1 million threshold has become politically harder to defend as home values rise.
Income Taxes That Function Like a Wealth Surcharge
Oregon’s personal income tax uses four brackets. The top rate is 9.9% on taxable income above $125,000.7Oregon Revised Statutes. Oregon Code 316.037 – Imposition and Rate of Tax The lower three brackets adjust annually for inflation; the $125,000 top-bracket threshold is fixed by statute and does not move. Oregon has no sales tax, which is part of why the income tax runs higher than in many states.
Residents of the Portland metro area owe two additional income taxes on top of that. Both are administered by the City of Portland’s Revenue Division and require their own filings.8Portland.gov. Personal Income Tax Filing and Payment Information
Metro Supportive Housing Services Tax
The Metro Supportive Housing Services tax is a flat 1% on taxable income above $125,000 for single filers and $200,000 for joint filers. It reaches anyone who lives in the Metro district, works there, or earns income from Metro-area sources.9Metro. Metro Code – Chapter 7.06 Personal Income Tax – Section 7.06.040 Beginning with tax year 2026, those thresholds will adjust annually for inflation, though Metro had not published specific 2026 figures at the time of writing.10Metro. Supportive Housing Services Taxes Frequently Asked Questions
Multnomah County Preschool for All Tax
Multnomah County adds its Preschool for All tax. Through 2026, the PFA tax charges 1.5% on taxable income above $125,000 single or $200,000 joint, plus another 1.5% on income above $250,000 single or $400,000 joint. The combined top-tier rate is 3%.11Multnomah County. Multnomah County Preschool For All Personal Income Tax On January 1, 2027, an 0.8% increase takes effect, lifting the base PFA rate to 2.3% and the top-tier combined rate to 3.8%.12Multnomah County. Ordinance Amending MCC Chapter 11.500 – Preschool for All Personal Income Tax
What That Adds Up To
For a Multnomah County resident earning above the top thresholds, SHS and PFA together add 4% in 2026 (4.8% in 2027) on top of the state’s 9.9% rate. A $300,000 earner in Multnomah County faces a combined marginal rate approaching 14% before federal taxes. That is the number driving most of the “wealth tax” conversation in Oregon, even though the mechanism is income-based rather than asset-based.
If you owe both metro taxes and share the same residency status for each, a single combined return through Portland Revenue Online covers both. Returns follow the federal and state schedule, generally April 15. A filing extension does not extend the payment deadline.8Portland.gov. Personal Income Tax Filing and Payment Information
Why Real Estate Isn’t Hit the Same Way Each Year
Oregon’s constitutional property tax limits work against anything resembling a wealth tax on real estate. Under Measure 50, a property’s assessed value for tax purposes can rise by no more than 3% per year, even if market value climbs much faster. The taxable assessed value is always the lower of the capped maximum or the actual market value. Measure 5 separately caps the total rate at $5 per $1,000 of assessed value for education and $10 per $1,000 for general government. A home with a $1.5 million market value may be assessed and taxed at a fraction of that figure, which shields long-time owners from the kind of annual asset-based bill a true wealth tax would produce. That protection also explains why the estate tax, triggered only at death, carries so much of the load when the state does reach real estate wealth.