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 they are 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.
[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.]
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.
Oregon income taxes
Oregon Income Tax Range: Single filers
| Up to $3,750 | 4.75% |
| $3,750 to $9,450 | 6.75% |
| $9,450 to $125,000 | 8.75% |
| More than $125,000 | 9.9% |
Oregon Income Tax Range: Joint filers
| Up to $7,500 | 4.75% |
| $7,500 to $18,900 | 6.75% |
| $18,900 to $250,000 | 8.75% |
| More than $250,000 | 9.9% |
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.
How much are property taxes in Oregon?
In Oregon, the average effective tax rate is 0.93%. While this rate is low compared to many other states, median tax bills in Oregon are higher than in many parts of the country. This is largely due to high home valuations.
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 taxes (motor fuel)
Gasoline: $0.38 per gallon (varies by location).
Diesel: $0.38 per gallon (varies by location).
Oregon taxes on alcohol and tobacco
| Cigarettes | $1.32 per pack |
| Other tobacco products | 65% of wholesale price |
| Beer | $0.08 per gallon |
| Wine | $0.67 per gallon |
| Liquor | State-Controlled |
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
-
Three Ways to Protect Your Retirement From Sequence of Returns RiskRetiring in a down market doesn’t have to ravage your retirement, but safeguarding your savings requires planning well in advance.
-
Single-Premium Insurance: A Different Way to Pay for Coverage
Single-premium programs enable you to pay future annual premiums on an existing or new policy by purchasing a single-premium immediate annuity (SPIA).
-
Another Big IRS Tax Change for Online Sellers
Selling Online Just in time for the holidays, the IRS is delaying a significant tax 1099-K reporting requirement for 2023.
-
Tax-Deductible Black Friday Deals for the Self-Employed
Black Friday Deals Some Black Friday deals can help the self-employed save on business expenses and taxes.
-
Did You Overpay for Thanksgiving Dinner?
Thanksgiving 2023 marks the second most expensive Thanksgiving dinner in history. But how much it cost depended on what you bought, where you live — and whether your state taxes groceries.
-
Most Expensive States for Retired Military Service Members
Military Retirement Veterans can keep more of their military retirement pay by avoiding these high-taxed, most expensive states for retired service members.
-
Max Your 2023 401(k) Contributions Now Before the Deadline
401(k) Contributions Year-end is the deadline for making max 401(k) contributions that can increase your savings for retirement and help lower your tax bill.
-
10 Worst States To Retire in if You Hate Paying Taxes
State Taxes Relatively high tax burdens make these places the worst states to retire.
-
Charitable Donations: What To Know About Scams and Taxes Before You Give
Donations Giving to a charity can make you feel good and lower your tax bill, but the IRS says to beware of fake charities.
-
Are I Bonds Taxable? 10 Common Situations
taxes Series I bonds are a popular investment that can also help you save on taxes, but the federal income tax consequences can be complex.
