Oregon Tax Guide 2025

Explore Oregon's 2025 state tax rates for income, sales, property, retirement, and more. Learn how Oregon compares nationwide.

Oregon state flag on pole flying against golden sky
(Image credit: Getty Images)

Oregon state tax: Overview

When it comes to shopping, Oregon is about as good as it gets. The state is one of only five in the country with no sales tax, which means you won’t see extra charges tacked on at the register. But while it’s a great place to buy goods and services, earning money here can come with a higher price.

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. The good news is that estates under $1 million aren’t taxed, 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.]

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Oregon income tax

picture of Portland, Oregon skyline in the fall

(Image credit: Getty Images)

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

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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?

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(Image credit: Getty Images)


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 

rendering of a yellow car against a yellow background

(Image credit: Getty Images)

Gasoline: $0.30 per gallon.

Diesel: $0.30 per gallon.

Source: Sales Tax Handbook


Oregon taxes on alcohol and tobacco

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Oregon tobacco taxes

Product

Tax Amount

Cigarettes

$1.32 per pack

Other Tobacco Products

65% of wholesale price

Source: Sales Tax Handbook

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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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Katelyn Washington
Former Tax Writer

Katelyn has more than 6 years of experience working in tax and finance. While she specialized in tax content while working at Kiplinger from 2023 to 2024, Katelyn has also written for digital publications on topics including insurance, retirement, and financial planning and had financial advice commissioned by national print publications. She believes knowledge is the key to success and enjoys providing content that educates and informs.