Oregon property tax

Buying a home in Oregon? Property taxes fund local schools, safety, and infrastructure – and they also influence your monthly mortgage payment if you escrow. It's natural to wonder: How much will I have to pay, and when are property taxes due in Oregon? This guide explains Oregon’s average property tax rate, how property tax assessment works, statewide limits (Measures 5 and 50), county-by-county rates, exemptions, and the Oregon property tax payment deadline so you can budget confidently.

How much are property taxes in Oregon?

Oregon has an average effective property tax rate of 0.78%, according to the Tax Foundation. The state's rate is slightly lower than the national average of 0.89%, ranking Oregon 24th among the 50 states for the highest property tax rates.

Oregon property taxes vary from county to county. The range of property tax rates across Oregon counties spans from a low of 0.5281% in Josephine County to a high of 1.0082% in Gilliam County, meaning a homeowner with a $300,000 property would likely pay between $1,584 and $3,025 annually, depending on location.

How Oregon property taxes work

Oregon has no state-level property tax. Instead, all property taxes go directly to local governments and special districts.

The money collected is used to fund local services, particularly public schools, police and fire departments, libraries, parks, community services, municipal government operations, and infrastructure like roads and bridges.

Property taxes are a significant source of revenue for more than 1,200 taxing districts in the state.

County offices manage the entire lifecycle of property taxation by appraising home values, processing payments, and funneling those funds directly to the local and county sources that need them.

"Property taxes in Oregon are the lifeblood for local communities rather than the state government," says Erik Leland, a real estate agent with Realty First in Lake Oswego, Oregon. "In premium markets like Lake Oswego, these taxes are essentially an investment in the quality infrastructure and excellent schools that keep property values resilient, even in shifting markets."

How your assessed value is determined

Oregon homeowners pay taxes on the assessed value (AV) of their properties. Oregon uses a dual-value system. That means homes and properties have:

• A real market value (RMV), which reflects current market conditions.
• A maximum assessed value (MAV), which is the taxable value.

Put simply, AV is the lesser of your RMV or MAV.

How tax rates are applied

Property tax rates in Oregon are expressed as a per-$1,000 rate of assessed value. The total rate includes the rates for all taxing districts in which the property is located, including the county, city, and school districts.

Tax rates are applied to your AV, says Ryder Meehan, owner of TaxDrop.com in Glendale, California. "This creates a situation where two identical homes on the same block can have very different tax bills, depending on when they were last sold or reassessed," he says.

In Oregon, you also can be charged "special assessments," which are additional charges that fund local improvements such as new sidewalks, sewers, or street lighting. These expenses are determined by local government bureaus and sent to the county tax assessor to be included as a separate line item on your tax bill. They're treated just like regular property taxes, so you must pay them on time to avoid interest penalties.

Limitations on property taxes in Oregon

Fortunately for Oregon homeowners, two measures in place limit what you can be charged for property taxes in the state. Let's take a closer look at both measures.

Measure 5

Oregon Measure 5 is a state constitutional amendment passed in the 1990s that limits the amount of property taxes that can be collected to $5 per $1,000 of RMV for education-related taxes and $10 per $1,000 of RMV for general government-related taxes. The combined limit is $15 per $1,000 of RMV.

Bond levies for capital improvement projects are excluded from these limits.

If property taxes in either category exceed the limit, local governments must reduce them through a process known as compression.

Measure 50

Another voter-approved measure passed in the 1990s, Oregon Measure 50 re-set the baseline for MAV at 90% of the RMV for the 1995-96 tax year. Measure 50 also limits increases to your MAV to 3% per year. However, your property taxes can increase beyond the 3% cap if you add a new structure, improve an existing structure, or a subdivision or partition is added to your property.

The AV that you pay taxes on is the lower of the RMV or MAV.

How to calculate property taxes in Oregon

To determine your Oregon property taxes, take your AV, divide it by $1,000, then multiply by your local tax rate.

Let's say you have a home with an AV of $268,866. If your local tax rate is $18 per $1,000, divide $268,866 by 1,000, then multiply by 18, for an estimated annual tax bill of $4,839.

When are property taxes due in Oregon?

Oregon property taxes are paid in three installments, which come due Nov. 15, Feb. 15 of the following year, and May 15.

"Statements for the first installment go out in late October, with the first payment due by Nov. 15. I always tell my clients to pay in full if they can, because Oregon offers a 3% discount for paying the whole bill by the November deadline," Leland says. Homeowners are also eligible for a 2% rebate if they pay in two installments instead of three, he says.

If you don't pay your installments on time, you'll be charged 1.3333% interest per month or fraction of a month – equivalent to 16% per year – until the total amount is paid.

Oregon property tax rates by county

Curious what the property tax rate is from county to county in Oregon? Here's a breakdown:

Oregon property tax exemptions

Oregon offers more than 100 property tax exemptions that provide either full or partial tax savings. Here are examples of some of the exemptions you can take if you qualify:

• Disabled veteran or surviving spouse. If you are a disabled veteran or the surviving partner of one, you can reduce your tax bill by exempting a specific portion of your home's assessed value.
• Active-duty military. Are you an Oregon National Guard or Reserve member deployed on active duty? If so, you may be eligible for a tax reduction on your primary residence.
• Commercial facilities under construction. If you own a business with qualified commercial projects in progress as of Jan. 1, you can apply for an exemption for that year, which helps reduce overhead costs before the facility becomes operational.
• Enterprise zones. If your business is in a designated enterprise zone, you can get a property tax exemption on new equipment or construction for up to 15 years.
• Property of charitable and religious organizations. Nonprofits, religious groups, and schools may be exempt from taxes on property used specifically for their organizational mission.

FAQ

Still have questions about Oregon property taxes? Here are some of the most common queries homeowners have, along with their answers.

Where does Oregon rank in property taxes?

When it comes to the average effective property tax rate, Oregon ranks right near the middle – 24^th in the nation – according to the Tax Foundation. But note that property taxes can vary from county to county in the state.

How much is the property tax on a $300,000 house in Oregon?

A home worth $300,000 in Oregon would likely pay $2,340 in property taxes, based on the state's average effective property tax rate of 0.78%. However, the price you pay depends on your location. In Multnomah County, for example, a $300,000 home could trigger property taxes closer to $2,875 versus $1,924 in Lake County.

Are Oregon property taxes based on purchase price?

Property taxes in Oregon are based on your home's assessed value rather than the purchase price. The state uses two figures to calculate taxes: real market value, which reflects what your property could sell for under current conditions, and maximum assessed value, which is the taxable amount and generally cannot increase by more than 3% per year unless major changes are made to the property.

Is Oregon a highly taxed state?

Oregon has an effective property tax rate of 0.78%, according to the Tax Foundation, which is lower than the national average of 0.89% homeowners pay. The state ranks 24^th out of 50 in property tax rates, putting it in the middle of the pack in terms of what homeowners pay. Oregon has no state sales tax, but it has relatively high state income taxes.

The bottom line

Oregon has an average effective property tax rate of 0.78% statewide, although rates vary by county. Taxes are based on a dual-value system that uses both real market value and maximum assessed value, with the latter generally limited to 3% annual growth under Measure 50, while Measure 5 limits certain tax rates relative to market value. Taxes are due in three installments each year, and the state also offers numerous property tax exemptions for qualifying homeowners, veterans, businesses, and nonprofit organizations.

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