Oregon State Tax Guide

Oregon state tax rates and rules for income, sales, property, fuel, cigarette, and other taxes that impact residents.

Oregon state flag on pole flying against golden sky
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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.] 

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Does Oregon have state income tax?

picture of Portland, Oregon skyline in the fall

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Oregon Income Tax Range: Single filers

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Up to $3,7504.75%
$3,750 to $9,4506.75%
$9,450 to $125,0008.75%
More than $125,0009.9%

Oregon Income Tax Range: Joint filers

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Up to $7,5004.75%
$7,500 to $18,9006.75%
$18,900 to $250,0008.75%
More than $250,0009.9%

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?

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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: $0.40 per gallon (varies by location).

Diesel: $0.40 per gallon (varies by location).


Oregon taxes on alcohol and tobacco

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Cigarettes$1.32 per pack
Other tobacco products65% of wholesale price
Beer$0.08 per gallon
Wine$0.67 per gallon
LiquorState-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%.

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Katelyn Washington
Tax Writer

Katelyn has more than 6 years’ experience working in tax and finance. While she specializes in tax content, Katelyn has also written for digital publications on topics including insurance, retirement and financial planning and has had financial advice commissioned by national print publications. She believes that knowledge is the key to success and enjoys helping others reach their goals by providing content that educates and informs.