2026 Tax Overview
Oregon combines a progressive personal-income tax with no general sales tax. For anyone comparing a move, the trade-off is important: everyday purchases are not subject to a broad sales tax, but income taxes can be material. This guide separates rules effective for 2026 planning from items that depend on a future filing booklet or a specific locality.
Income Tax
Oregon uses progressive marginal rates ranging from 4.75% to 9.9%. A marginal rate applies only to the portion of taxable income inside that bracket; it is not the rate applied to every dollar earned. Exact bracket thresholds should be checked against the Oregon Department of Revenue instructions for the return being filed.
For tax year 2026, Oregon's standard deduction is $2,910 for single filers and married/RDP filers filing separately, and $5,820 for married/RDP filers filing jointly. Oregon begins with federal income but has state additions, subtractions, credits, and deduction rules, so federal taxable income and Oregon taxable income are not always the same.
Most cities and counties do not impose a general wage tax, but the Portland metropolitan area has separate local programs that may affect higher-income residents. Movers should check their exact address rather than treating Oregon as having one uniform local-income-tax rule.
Sales Tax
Oregon has no general state or local sales or use tax. Specific transactions can still face other charges, including vehicle-related taxes and fees, lodging taxes, and regulated-product taxes. “No sales tax” therefore does not mean every transaction is tax-free.
Property Tax
Property taxes are local and depend on assessed value, taxing districts, and voter-approved levies. Measures 5 and 50 shape Oregon's system, including limits on assessed-value growth for existing property. Market value and assessed value can differ substantially, so a statewide percentage is not a reliable estimate for a particular home. Before buying, request the current tax statement and review the county assessor record.
Estate and Other Taxes
Oregon imposes an estate tax, not an inheritance tax. A return is generally required when the gross estate is $1 million or more, subject to residency and Oregon-property rules. The estate is responsible for the tax; describing it as a tax automatically paid by each beneficiary would be incorrect.
Oregon also imposes targeted taxes and fees on products or activities such as tobacco, cannabis, fuel, lodging, and certain vehicles. Rates can change independently and should be checked on the relevant agency page.
Retirement Considerations
Oregon does not tax Social Security benefits. Pension income and withdrawals from accounts such as traditional IRAs and 401(k)s are generally included in Oregon taxable income, subject to deductions or credits that may apply to an individual's circumstances. Retirees should compare income tax, housing costs, and local property taxes together.
Relocation Context
Moving from Washington often means exchanging a broad sales-tax environment for Oregon income tax. Moving from California can reduce the top marginal income-tax rate, but the result depends on income, deductions, housing, and locality. Do not compare states using only one headline rate.
Official Sources
- Oregon Department of Revenue — Forms
- Oregon Department of Revenue — Personal income tax
- Oregon Department of Revenue — Estate tax
- Oregon Department of Revenue — Sales tax information
Reviewed July 10, 2026. This guide is general information, not individualized tax advice. Confirm the instructions for the tax year you are filing and consult a qualified tax professional for personal decisions.