Oregon has no general sales tax, so the state funds itself primarily through a progressive personal income tax, local property taxes, two separate business taxes, excise taxes on items like fuel and tobacco, an estate tax, and a cluster of extra income taxes in the Portland metro area. If you’re asking what taxes Oregon has, the short answer is almost everything except a sales tax, and the income side runs higher than in many other states to compensate.
No Sales Tax at the Register
Oregon does not impose a general sales or use tax on retail purchases.1Oregon Department of Revenue. Sales Tax in Oregon The price on the tag is the price you pay. Voters have rejected sales tax proposals repeatedly, and the state is one of only a handful nationwide without one. Everything else below exists in part because this revenue source doesn’t.
Personal Income Tax
Oregon taxes residents on worldwide income and non-residents on income earned from Oregon sources. The structure is progressive, with four brackets running from 4.75% on the lowest taxable income up to 9.9% on the highest earners.2Tax Foundation. Taxes In Oregon The top rate reaches you at a relatively modest income level compared with many other states, which matters if you’re moving in from somewhere with lower brackets.
The 2026 standard deduction is $2,910 for single filers and $5,820 for married couples filing jointly.3Oregon Department of Revenue. Oregon Withholding Tax Formulas – 2026 A range of credits and subtractions can reduce the final bill, including a credit for income taxes paid to another state on income Oregon also claims.
Do Non-Residents Have to File?
If you earn Oregon-source income but live elsewhere, you probably owe Oregon tax and need to file. For 2025, a single non-resident with more than $2,835 in Oregon gross income must file, and the threshold for married couples filing jointly is $5,670.4Oregon Department of Revenue. Do I Need to File – Individuals Wages from an Oregon employer, rental income from Oregon property, and running a business in the state are the common triggers.
The Kicker Credit
Oregon returns surplus revenue to taxpayers through a mechanism called the “kicker.” When collections exceed the state’s revenue forecast by more than 2% over a two-year budget cycle, the excess comes back as a credit on your return. The amount equals a set percentage of your prior-year liability. The kicker on 2025 returns is 9.863% of each filer’s 2024 tax liability.5Oregon Department of Revenue. Oregon Surplus (Kicker)
The kicker only shows up on returns for odd-numbered tax years, so 2026 returns will not include one.5Oregon Department of Revenue. Oregon Surplus (Kicker) Whether a kicker triggers for 2027 depends on how collections run during the current cycle.
Property Tax
Local governments levy property taxes in Oregon: counties, cities, school districts, and special districts each set their own rates on top of each other. What you owe depends on where the property sits. The tax is calculated on assessed value, which is almost always lower than real market value because of two constitutional amendments from the 1990s.
Measure 5, passed in 1990, caps the total tax on any property at $5 per $1,000 of real market value for education levies and $10 per $1,000 for general government levies.6Oregon Department of Revenue. A Brief History of Oregon Property Taxation Voter-approved bond measures sit outside those caps.
Measure 50, passed in 1997, created a “maximum assessed value” that can grow by no more than 3% per year, and it can never exceed real market value.7Oregon State Legislature. SJR 1 Staff Measure Summary In practice, long-held properties often carry assessed values well below market, while newly purchased or newly built homes see the two figures closer together.
Deferral for Seniors and Disabled Homeowners
Qualifying homeowners can postpone paying property taxes until the home is sold or the owner dies. To qualify for 2026, you must be at least 62 or receiving federal Social Security disability benefits, have owned and lived on the property for at least five years, carry homeowner’s insurance, and have household income below $70,000 and net worth below $500,000 excluding the home.8Oregon Department of Revenue. Oregon Property Tax Deferral for Disabled and Senior Homeowners The state pays the taxes, places a lien on the home, and collects interest when the balance comes due.
Business Taxes
Businesses in Oregon face three layers of taxation that often surprise companies used to a single corporate income tax.
Corporate Excise Tax
Any corporation doing business in Oregon owes the corporate excise tax: 6.6% on the first $1 million of Oregon taxable income and 7.6% on taxable income above that.9Justia Law. 2025 Oregon Revised Statutes Chapter 317 – Corporation Excise Tax A minimum tax also applies regardless of profits: $150 if Oregon sales are under $500,000, with higher minimums scaling up from there. Corporations that earn Oregon-sourced income but aren’t “doing business” in the state in the statutory sense pay a corporate income tax at the same rates instead.
Corporate Activity Tax
The Corporate Activity Tax (CAT), in effect since January 2020, sits on top of the excise tax and works on gross receipts rather than net income. Take total commercial activity in Oregon, subtract 35% of the greater of cost of goods sold or labor costs, then subtract $1 million. The tax is $250 plus 0.57% of what remains.10Oregon State Legislature. Corporate Activity Tax Frequently Asked Questions Businesses whose commercial activity falls below $1 million after the 35% deduction owe only the $250 flat amount.
Payroll Taxes
Oregon employers owe several payroll obligations beyond the federal ones:
- Unemployment insurance: new employers pay 2.4% on the first $56,700 in wages per employee in 2026. Experienced employers pay between 0.9% and 5.4% based on claims history.11State of Oregon. Current Tax and Contribution Rates
- Paid Leave Oregon: the total 2026 contribution is 1% of wages up to $184,500 per employee. Employees pay 0.6% and employers with 25 or more workers pay 0.4%. Smaller employers don’t owe the employer share but still collect and remit the employee portion.12Oregon Employment Department. Unemployment Insurance Tax and Paid Leave Oregon Contribution Rates Hold Steady for 202613Paid Leave Oregon. Common Questions About Paid Leave
- Workers’ Benefit Fund: 1.8 cents per hour worked in 2026, down from 2.0 cents in 2025.14Oregon State Legislature. Analysis Consent Agenda Agency Reports – November 2025
Excise Taxes on Specific Goods
Without a general sales tax, Oregon reaches specific categories through targeted excise taxes.
Gasoline is taxed at 40 cents per gallon to fund road construction and maintenance.15Oregon Department of Transportation. Western States Tax Comparison – January 2026 A road usage charge pilot program covers electric and high-efficiency vehicles that contribute less at the pump.
Cigarettes carry a state excise tax of $3.33 per pack of 20. Other tobacco products are taxed at 65% of the wholesale price, with cigars capped at 50 cents each, and moist snuff is taxed at $1.78 per ounce with a minimum of $2.14 per container.16Oregon State Legislature. Measure 108 Tobacco Tax Increase
Beer is taxed at $2.60 per barrel, roughly 8.4 cents per gallon. Table wine runs 67 cents per gallon, and dessert wine between 14% and 21% alcohol runs 77 cents per gallon.17Oregon State Legislature. Research Report 1-23 Oregon Liquor Control Commission Alcohol Revenue Distilled spirits move through the Oregon Liquor and Cannabis Commission, which collects revenue through pricing markups rather than a separate excise.
Licensed retailers collect a 17% state tax on recreational marijuana, and cities and counties that allow sales can add up to 3% more.18Oregon Department of Revenue. Marijuana – Businesses Medical marijuana purchases are exempt.
Hotels, vacation rentals, and other short-term lodging owe a 1.5% state transient lodging tax, with most cities and counties stacking local lodging taxes on top.19Oregon Department of Revenue. Transient Lodging Tax – Businesses Vehicle dealers pay a 0.5% privilege tax on the retail price of new vehicles sold in Oregon, and an equivalent use tax applies when you buy a new vehicle out of state and register it here.
Estate Tax
Oregon imposes an estate tax on the estates of deceased residents and on Oregon property owned by non-residents. A return is required when the gross estate (counting assets both inside and outside Oregon) is $1 million or more.20Oregon State Legislature. Section F – Estate Tax That threshold is far below the federal exemption and catches many Oregonians off guard.
Rates are graduated:
- $1 million to $1.5 million: 10%
- $1.5 million to $2.5 million: 10.25%
- $2.5 million to $3.5 million: 10.5%
- $3.5 million to $4.5 million: 11%
- $4.5 million to $5.5 million: 11.5%
- $5.5 million to $6.5 million: 12%
- $6.5 million to $7.5 million: 13%
- $7.5 million to $8.5 million: 14%
- $8.5 million to $9.5 million: 15%
- Over $9.5 million: 16%
An estate worth exactly $1 million owes nothing, but an estate worth $1.5 million owes $50,000.20Oregon State Legislature. Section F – Estate Tax The jump from zero to a real bill is steep, which makes planning important for anyone whose net worth is near the threshold.
Extra Taxes in the Portland Metro Area
If you live or work in or near Portland, three additional taxes apply that don’t apply elsewhere in Oregon. These are easy to miss if you’ve just moved in.
Every Portland resident 18 or older with at least $1,000 in annual income and household income above the federal poverty level owes a flat $35 Arts Tax each year.21City of Portland. Arts Tax Filing and Payment Information There is no proration for partial-year residents.
Multnomah County’s Preschool for All tax starts in 2026 at 1.5% of taxable income above $125,000 for single filers and above $200,000 for joint filers, rising to 3% on income above $500,000.22Multnomah County. 2026 Multnomah County Preschool For All Personal Income Tax Tables Non-residents who earn income in the county pay on that county-sourced income.
Metro’s Supportive Housing Services tax adds 1% on personal taxable income above $125,000 (individuals) or $200,000 (joint filers) to fund homelessness services.23Oregon Metro. Pay My Supportive Housing Services Taxes Businesses with more than $5 million in gross receipts pay 1% on net income. Beginning in 2026, the personal income thresholds adjust annually for inflation, and the quarterly estimated payment threshold rises to $5,000.
Stacked together, a high-earning Portland resident can face the 9.9% state rate plus the Multnomah County preschool tax plus the Metro housing tax, pushing the effective marginal rate well above what the state figure alone suggests.
Filing Deadlines, Interest, and Penalties
Oregon personal income tax returns are due April 15, matching the federal deadline.24Oregon Department of Revenue. With Less Than Five Weeks to Go Before Tax Deadline State Has Issued 720,000 Refunds An automatic six-month extension is available for filing, but any tax owed is still due April 15, and interest runs from that date on anything unpaid.
For 2026, the Department of Revenue charges 8% annual interest on unpaid tax (Tier One). If a balance stays unpaid more than 60 days after certain triggering events, such as a notice of assessment, the rate climbs to 12% (Tier Two).25Oregon Department of Revenue. Annual Interest Rate Update for 2026 Late-filing and late-payment penalties stack on top of interest, so filing on time even without full payment is almost always the better call.