State-by-State Guide to Taxes on Middle-Class Families
Tool | November 2021

Oregon State Tax Guide for Middle-Class Families

State tax rates and rules for income, sales, gas, property, cigarette, and other taxes that impact middle-class families.


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The Bottom Line
Flag of Oregon

Mixed Tax Picture

Oregon's income tax bite is one of the biggest in the country. The lowest rate is 4.75% and the highest 9.9%. However, the state has a provision called the "kicker": If too much money is collected in a given year, taxpayers will receive a partial refund in the next year. More good news: Beaver State shoppers pay no sales tax at all. Property taxes are middle-of-the-road, too.

Income Tax Range

Low: 4.75% (on up to $3,650 of taxable income for single filers and up to $7,300 for married couples filing jointly)

High: 9.9% (on taxable income over $125,000 for single filers and over $250,000 for married couples filing jointly)

A "kicker" tax credit is available for the 2021 tax year (the credit is possible only in odd-numbered years), because actual state revenues exceeded forecasted revenues by 2% or more over the two-year budget cycle. For 2021, the credit is equal to 17.341% of your 2020 Oregon tax liability before any credits.

Counties and special districts can also impose local income taxes.

Sales Tax

No state or local sales tax.

Real Property Taxes

In Oregon, the median property tax rate is $939 per $100,000 of assessed home value.

Motor Fuel Taxes

Gasoline: 40.83¢ per gallon (varies by location).
Diesel: 40.06¢ per gallon (varies by location).

Sin Taxes

Cigarettes: $3.33 per pack
Cigars: 65% with a cap of $1 per cigar
Moist snuff: $1.78 per ounce with a minimum of $2.14 per unit sold
All other tobacco: 65% of wholesale price
Vapor products: 65% of wholesale price

Beer: $0.08 per gallon
Wine: $0.67 per gallon if up to 16% alcohol by volume, $0.77 per gallon if over 16% but less than 21% alcohol by volume, or $0.75 per gallon if over 21% alcohol by volume
Liquor: $21.95 per gallon
Liquor tax is an estimate by the Distilled Spirits Council of the United States and published by the Tax Foundation.

Marijuana: 17% retail sales tax (some municipalities add 3% tax)

Annual Car Taxes and Fees

No annual vehicle tax or fee is imposed.

Estate and Inheritance Taxes

Oregon has an estate tax for estates valued at $1 million or more. Rates range from 10% to 16%.