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.
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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%.
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