State Tax Guide
No Statewide Sales TaxOregon State Taxes: A Simple Guide
Oregon has a state income tax and local property taxes but does not have a general statewide sales tax. This guide explains the basics in clear, plain language.
📌 Important
This overview is not exhaustive. Oregon tax rules and programs change over time. Always check official Oregon guidance or consult a tax professional for current details and your specific situation.
💰Oregon state income tax
Oregon taxes personal income using its own brackets and definitions, separate from federal law. The state has a progressive income tax with rates that increase as income rises.
Key points:
- Most residents must file an Oregon state income tax return if they meet filing thresholds.
- Nonresidents may need to file if they earn Oregon-source income (such as wages from an Oregon employer).
- Oregon's taxable income rules differ from federal rules—some federal deductions or exemptions may not apply at the state level.
- Oregon has its own standard deduction, tax credits, and brackets that are separate from federal tax law.
Residents typically file a federal Form 1040 plus an Oregon return (Form OR-40) if they meet the state's filing requirements. Part-year residents and nonresidents use different forms.
🛍️No statewide sales tax
Oregon is one of the few states with no general statewide sales tax on retail purchases. This is a significant advantage for consumers and a defining feature of Oregon's tax structure.
✓ What this means:
- You'll generally see no state sales tax added at checkout when you buy goods or services in Oregon.
- The price on the shelf is typically the price you pay (plus any specific local taxes or fees that may apply).
- Oregon does not impose a use tax on items purchased out of state for use in Oregon.
Exceptions and notes:
- Some specific taxes or fees may still apply, such as lodging taxes, rental car taxes, or local special district fees.
- Certain local jurisdictions may impose narrow taxes on specific activities (for example, some cities have taxes on prepared food or other services).
- If you shop online from out-of-state retailers, other states' sales tax rules may apply depending on the seller's location and policies.
🏡Property taxes
Property taxes in Oregon are imposed by counties, cities, and school districts, based on assessed property values. These taxes are a major source of funding for local schools and government services.
How it works:
- Homeowners receive annual property tax bills from their county assessor or tax collector.
- Property taxes are based on the assessed value of your home or land, subject to Oregon's constitutional limits on assessment growth.
- Multiple jurisdictions may levy property taxes on the same property (county, city, school district, special districts, etc.).
- Oregon has Measure 5 and Measure 50 constitutional limits that cap property tax rates and assessment increases.
💡 Relief programs:
Some Oregon residents may qualify for exemptions, deferrals, or property tax relief programs based on age, income, disability, or veteran status. Check with your county assessor or the Oregon Department of Revenue for details.
Putting Oregon taxes together
A typical Oregon resident deals with:
- ✓Federal income tax (Form 1040)
- ✓Oregon state income tax (Form OR-40)
- ✓No statewide sales tax on most purchases
- ✓Local property taxes if they own a home or property
Start with how filing works and add Oregon's rules on top. You can also explore what Form 1040 is to understand the federal side.