The sales tax rate in Portland, Oregon is 0%. Oregon does not levy a general sales or use tax, and neither does the city or Multnomah County, so the sticker price is what you pay at the register for clothing, electronics, furniture, groceries, and almost everything else.1Oregon Department of Revenue. Sales Tax in Oregon A handful of specific purchases still carry their own taxes, and some receipts from large chain stores include a 1% line item that is easy to mistake for sales tax. The rest of this article walks through what actually gets added and when.
What the 0% Rate Covers
Oregon has never enacted a general sales tax. Voters have rejected proposals repeatedly, and the state constitution requires voter approval to create one. State government runs primarily on personal and corporate income taxes, with local governments relying on property tax.1Oregon Department of Revenue. Sales Tax in Oregon
The zero rate is complete. No state, county, or city sales tax is added at checkout anywhere in Oregon. Because Oregon also has no companion use tax, ordering online from a retailer based in a sales-tax state does not create a tax liability to Oregon on that purchase.
The 1% Charge You May See on a Receipt
Shoppers at large national chains in Portland sometimes see a 1% line item added to the total. That is the Portland Clean Energy Community Benefits surcharge, set out in Portland City Code Chapter 7.07. Legally it is a gross receipts tax on the retailer, not a sales tax on the customer, but qualifying retailers commonly pass it through as a visible charge.2Portland.gov. Portland City Code 7.07.020 – Policy and Purpose
The surcharge applies only to retailers with more than $1 billion in nationwide gross revenue and at least $500,000 in Portland revenue. Small and mid-sized local businesses are not affected.3Portland.gov. Portland City Code 7.07 – Portland Clean Energy Community Benefits Groceries, medicine, and healthcare services are exempt no matter the size of the retailer, so a prescription filled at a national pharmacy or a grocery run at a big-box store will not trigger the 1%.2Portland.gov. Portland City Code 7.07.020 – Policy and Purpose
Purchases That Do Carry a Tax
A few categories are singled out for their own excise taxes, collected either at the register or built into the shelf price.
Recreational Cannabis
Recreational marijuana carries a 17% state tax on the retail price, applied to flower, edibles, concentrates, and topicals alike.4Oregon State Legislature. Oregon Code 475C.674 – Imposition of Tax on Retail Sale of Marijuana Items Local governments may add up to 3% more with voter approval, so a Portland dispensary purchase can run as high as 20%.5Oregon Department of Revenue. Marijuana Tax Distributions
New Vehicles
Oregon imposes a 0.5% Vehicle Privilege Tax on new vehicles sold by Oregon dealers. On a $40,000 car, that is $200 added to the price. Buying a new or near-new vehicle from an out-of-state dealer and bringing it into Oregon triggers a parallel Vehicle Use Tax at the same 0.5% rate, due within 30 days of purchase. A late payment carries a 5% penalty, and failing to file the return within 30 days pushes the penalty to 20%.6Oregon Department of Revenue. Vehicle Privilege and Use Taxes
Bicycles
New bicycles sold for $200 or more carry a flat $15 excise tax. It applies to both traditional and electric-assist bikes, with no age or wheel-size limit in the statute, though the $200 threshold keeps most children’s bikes out of scope.7Oregon Department of Revenue. Bicycle Excise Tax
Gas and Diesel
Motor fuel is taxed at $0.40 per gallon statewide. The rate took effect January 1, 2024, and is built into the posted pump price rather than shown as a separate line.8Oregon Department of Transportation. Current Fuel Tax Rates
Tobacco and Vaping
Cigarettes carry a state excise tax of $3.33 per pack of 20, roughly 16.65 cents per cigarette, set after voters approved Measure 108 in 2020. Cigars, chewing tobacco, and other tobacco products are taxed at 65% of the wholesale price, as are vaping products and other inhalant delivery systems.
Hotels and Short-Term Rentals
Lodging is where Portland’s tax bill starts to resemble a sales-tax state. A stay of fewer than 31 consecutive days at a hotel, motel, or short-term rental carries a combined transient lodging tax of 13% on the room charge.9Portland.gov. Portland City Code Chapter 6.04 – Transient Lodgings Tax10Multnomah County. Multnomah County Transient Lodging Tax11Oregon Department of Revenue. Transient Lodging Tax
Guests who stay 31 consecutive days or longer are exempt from the lodging tax entirely. Once you cross that threshold, the operator stops collecting the tax on day 31 and can refund or credit the tax collected for the first 30 days. Paying for a full month upfront also qualifies you for the exemption, regardless of how many days that month contains.12Portland.gov. Transient Lodgings Filing and Payment Information
Shopping in Vancouver, Washington
Vancouver sits directly across the Columbia River, and Washington’s combined state and local sales tax often exceeds 8%. Washington used to give Oregon residents a point-of-sale exemption on most purchases, but that ended in July 2019.
Since then, Oregon residents pay Washington sales tax at the register and can apply once per calendar year for a refund of the state portion only, not the local portion, from the Washington Department of Revenue. The refund requires proof of Oregon residency, copies of receipts, and at least $25 in Washington state sales tax paid during the year. Meals, lodging, parking, cannabis, and items consumed in Washington do not qualify. Motor vehicles, watercraft, farm machinery, and vessels purchased in Washington by Oregon residents are still exempt from Washington sales tax at the point of sale.
What Portland Uses Instead of a Sales Tax
The 0% sales tax can make Portland look like a low-tax city on the surface. On the income side, it is not.
The Metro Supportive Housing Services tax applies a 1% rate on taxable income above $128,000 for single filers or $205,000 for joint filers in 2026, funding homelessness services across the metro region.13Portland.gov. Personal Income Tax Filing and Payment Information The Multnomah County Preschool for All tax adds 1.5% on income above $125,000 for single filers ($200,000 joint), with another 1.5% on income above $250,000 single ($400,000 joint), bringing the top rate to 3%. Both sets of thresholds are adjusted periodically, so checking the current year’s numbers before filing is worth the effort.14Multnomah County. Multnomah County Preschool For All Personal Income Tax
Layered on top of Oregon’s state income tax, which reaches 9.9% at the top bracket, a high-earning Portland resident can face a combined marginal income tax rate above 14%. The absence of a sales tax at the register is real; the trade-off is that Portland collects heavily on the income side instead.