Oregon Tax Guide
Explore Oregon's state tax rates for income, sales, property, retirement, and more. Learn how Oregon compares nationwide.
Navigating the complexities of state taxes can be daunting, but understanding Oregon's tax landscape is essential for residents and newcomers alike.
In this guide, we'll explore key components of The Beaver State's tax system, from income and sales taxes to property taxes and retirement benefits.
Oregon state tax: Overview
When it comes to shopping, Oregon is one of only five states in the country with no sales tax, which means you won’t see extra charges tacked on at the register.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free 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.
Oregon’s income tax rates are steeper than in many other states. And if you’re inheriting property or assets, there’s something else to keep in mind: Oregon has a state estate tax.
Some good news is that estates under $1 million aren’t taxed in the Beaver State, so smaller inheritances are off the hook.
[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
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 retirement taxes
Oregon’s income tax brackets are high compared to most other states, and the state taxes most types of retirement income.
Oregon also has an estate tax that applies to estates valued over $1 million.
- Social Security: Not taxable
- Pensions: Taxable
- 401(k) and IRA Distributions: Taxable
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
Product | Tax Amount |
|---|---|
Cigarettes | $1.32 per pack |
Other Tobacco Products | 65% of wholesale price |
Source: Sales Tax Handbook
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
-
The Best Vanguard Bond Funds to BuyInvestors seeking the best Vanguard bond funds can pick between mutual funds and ETFs spanning maturities, credit qualities, tax treatment and geographies.
-
Are You Afraid of an IRS Audit? 8 Ways to Beat Tax Audit AnxietyTax Season Tax audit anxiety is like a wild beast. Here’s how you can help tame it.
-
The Kiplinger Letter's 10 Forecasts for 2026The Kiplinger Letter Here are some of the biggest events and trends in economics, politics and tech that will shape the new year.
-
Are You Afraid of an IRS Audit? 8 Ways to Beat Tax Audit Anxiety
Tax Season Tax audit anxiety is like a wild beast. Here’s how you can help tame it.
-
States That Tax Social Security Benefits in 2026Retirement Tax Not all retirees who live in states that tax Social Security benefits have to pay state income taxes. Will your benefits be taxed?
-
10 Cheapest Places to Live in WashingtonProperty Tax Is Washington your go-to ski destination? These counties combine no income tax with the lowest property tax bills in the state.
-
3 Major Changes to the Charitable Deduction for 2026Tax Breaks About 144 million Americans might qualify for the 2026 universal charity deduction, while high earners face new IRS limits. Here's what to know.
-
Retirees in These 7 States Could Pay Less Property Taxes Next YearState Taxes Retirement property tax bills could be up to 65% cheaper for some older adults in 2026. Do you qualify?
-
Estate Tax Quiz: Can You Pass the Test on the 40% Federal Rate?Quiz How well do you know the new 2026 IRS rules for wealth transfer and the specific tax brackets that affect your heirs? Let's find out!
-
Mamdani Millionaire's Tax: Let the New York Exodus Begin?State Tax Will higher income taxes drive the wealthy to flee New York in 2026?
-
Law Reversal Looming? Trump Eyes 2026 Gambling Winnings Tax ChangeTax Deductions It's no secret that the IRS is coming after your gambling winnings in 2026. But how long will that last?
