Oregon state tax: Overview
Oregon state tax can't get any better when it comes to purchasing goods and services. That's because Oregon is one of the five states with no sales tax. However, income tax rates are higher in the Beaver State than in many other parts of the U.S.
Additionally, heirs could face big tax bills in Oregon since there is a state estate tax, but estates worth less than $1 million aren't taxed.
In the News: Oregon has joined at least eight other states in implementing a new or expanded state child tax credit (CTC) since the expanded federal child tax credit expired in 2022.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The new Oregon child tax credit, known as the "Oregon Kid’s Credit," is worth up to $1,000 and is completely refundable. That means eligible taxpayers can receive the credit back as a tax refund.
For more information see Will You Qualify for the New Oregon Child Tax Credit?
[Data for this state tax guide was gathered from a number of sources including the Census Bureau, the state’s government website, the Sales Tax Handbook, and the Tax Foundation. Property taxes are cited as a rate percentage rather than the assessed value.]
Oregon income tax rate
Oregon has a graduated state individual income tax ranging from 4.75% to 9.9%, according to the Tax Foundation.
Counties and special districts in Oregon can also impose local income taxes.
Oregon tax on retirement income: Railroad retirement and Social Security benefits are tax-exempt.
Oregon sales tax
Oregon does not have a state sales tax rate, though cities can enact their own local sales tax.
How much are property taxes in Oregon?
In Oregon, the average property tax rate as a percentage of assessed home value is 0.77% according to the Tax Foundation.
Oregon Property Tax Breaks for Retirees
Homeowners 62 and older may qualify for Oregon's property tax deferral program. If approved for the program, you will borrow money from the State of Oregon to pay your county property taxes.
The loan is paid back when you sell or otherwise transfer ownership of the home. However, the loan accrues interest.
Oregon gas tax
Gasoline: $0.30 per gallon.
Diesel: $0.30 per gallon.
Source: Sales Tax Handbook
Oregon taxes on alcohol and tobacco
Oregon tobacco taxes
| Product | Tax Amount |
|---|---|
| Cigarettes | $1.32 per pack |
| Other Tobacco Products | 65% of wholesale price |
Source: Sales Tax Handbook
Oregon alcohol taxes
| Product | Tax Amount |
|---|---|
| Wine | $0.67 per gallon |
| Beer | $0.08 per gallon |
| Liquor | state-controlled |
Source: Sales Tax Handbook
Oregon estate and inheritance taxes
Oregon has an estate tax for estates valued at more than $1 million. Estate tax rates range from 10% to 16%.
Related Content
-
Should You Donate Money to the Social Security Trust Funds?You can make charitable donations to Social Security, the safety net for older Americans. But will it make a lasting impact?
-
What to Expect in the Rest of This Year's Job Market — and Advice for Job SeekersEspecially in the most competitive fields, job seekers will need to strategize to stand out.
-
Ten Cheapest Places To Live in FloridaProperty Tax Make your Florida vacation spot daily living — these counties have the lowest property tax bills in the state.
-
Missed Tax Day? Nearly One Million Taxpayers Still Can File and Claim Valuable Tax RefundsTax Refunds As many as one million taxpayers could be missing out on a significant tax refund.
-
Which Generation Pays the Most Tax in the US?Tax Burden Polls show that most people feel like taxes are unfair. But which age group bears the brunt of the tax burden in the United States?
-
Tax Day 2025: Don’t Miss These Freebies, Food Deals and DiscountsTax Day You can score some sweet deals on April 15 in some select restaurants like Burger King, Shake Shack, and more.
-
Tax Time: Does Your Kid Influencer Owe Taxes?State Tax Some minors are making big money on social media. Here’s how to know if they need to file taxes.
-
Trump Plans to Terminate IRS Direct File programTax Filing The IRS Direct File program was piloted last year in 12 states and has since expanded to 25. But will it last under the Trump administration?
-
How Caregivers for Adults Can Save on Taxes in 2025Tax Breaks Caring for your parent or spouse can be stressful, but the IRS offers tax breaks for qualifying taxpayers. Here they are.
-
U.S. Treasury to Eliminate Paper Checks: What It Means for Tax Refunds, Social Security
Treasury President Trump signed an executive order forcing the federal government to phase out paper check disbursements by the fall.
