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Property Tax in Oregon: Complete Guide 2026

Tax information is for educational purposes only and does not constitute tax advice. Consult a licensed tax professional for your specific situation.

Oregon is one of five states without a general sales tax, which makes property taxes a critical revenue source alongside the state income tax. The average effective property tax rate in Oregon is approximately ~0.82%, below the national average of ~0.99%. However, because Oregon home values tend to be above the national median, actual tax bills can be substantial. Oregon’s property tax system is shaped by two landmark ballot measures — Measure 5 (1990) and Measure 50 (1997) — that cap tax rates and limit annual assessed value growth to ~3% per year.

Oregon Property Tax Rates (2026)

Metric	Rate / Amount
Average effective rate	~0.82%
National average effective rate	~0.99%
Median home value	~$430,000
Median annual property tax	~$3,526

Property Tax by Select County

County	Avg. Effective Rate	Median Tax Paid
Multnomah (Portland)	~0.95%	~$4,500
Washington (Hillsboro)	~0.85%	~$4,200
Clackamas (Oregon City)	~0.80%	~$3,900
Lane (Eugene)	~0.95%	~$3,200
Marion (Salem)	~0.95%	~$3,100
Deschutes (Bend)	~0.65%	~$3,400
Jackson (Medford)	~0.75%	~$2,600
Benton (Corvallis)	~0.85%	~$3,600

How Oregon Property Tax Works

Measure 5 Rate Limits

Oregon Measure 5 (1990) limits total property tax rates for government operations to ~$10 per ~$1,000 of real market value for education and ~$5 per ~$1,000 for general government. If combined levies exceed these limits, individual levies are compressed proportionally.

Measure 50 Assessed Value Limits

Measure 50 (1997) froze assessed values at 1995-96 levels reduced by ~10%, then capped annual growth in assessed value at ~3% per year, regardless of actual market appreciation. New construction and significant improvements are added at their changed property ratio. This means a property’s assessed value can be substantially below its real market value, especially in rapidly appreciating markets like Portland and Bend.

Tax Rate Components

Oregon property taxes combine multiple levies, including:

School district permanent rates
City and county permanent rates
Special district rates (fire, parks, transit)
Voter-approved local option levies (time-limited)
Bonded indebtedness (exempt from Measure 5 rate limits)

Exemptions and Relief Programs

Senior and Disabled Property Tax Deferral: Homeowners 62+ or disabled with household income below ~$49,000 can defer property taxes. Deferred taxes become a lien on the property, payable with ~6% interest upon sale or transfer.
Disabled Veteran Exemption: Veterans with a ~40% or greater disability rating may exempt up to ~$28,045 of assessed value. Surviving spouses may also qualify.
Homestead exemption: Oregon does not have a broad homestead exemption for property tax purposes.
Farm/Forest Special Assessment: Qualifying agricultural and forestland is assessed at its use value rather than market value.

Comparison to National Average

Metric	Oregon	National Average
Average effective rate	~0.82%	~0.99%
Median annual tax paid	~$3,526	~$2,700
Assessment basis	Measure 50 (capped at ~3% growth)	Varies
Sales tax	0%	~5.0%

Oregon’s effective rate is below average, but higher home values push median tax bills above the national figure. The absence of a sales tax means property taxes (along with income taxes) carry a larger share of the state’s revenue needs.

Tips for Minimizing Oregon Property Tax

Understand the gap between assessed and market value. If your assessed value is well below market value, your tax bill benefits from the Measure 50 cap. Avoid triggering reassessment through certain types of improvements.
Appeal if assessed value exceeds real market value. While assessed value is usually below market, errors occur. If your assessed value exceeds what you could sell the property for, file an appeal with the county Board of Property Tax Appeals by December 31.
Apply for the senior/disabled deferral. Homeowners 62+ or disabled with household income below ~$49,000 can defer taxes, easing cash flow on fixed incomes.
Check disabled veteran exemption eligibility. Veterans with qualifying disability ratings should apply for the assessed value exemption annually.
Explore farm/forest special assessment. If you own qualifying agricultural or forestland, use-value assessment can dramatically lower your tax bill.
Monitor local option levies. These voter-approved levies expire after a set period. Track ballot measures in your area that may increase or decrease your future tax bill.
Budget for new construction reassessment. Building permits trigger reassessment of the improvement at current value, which is added to your existing assessed value.

Key Takeaways

Oregon’s average effective property tax rate of ~0.82% is below the national average
Measure 50 caps assessed value growth at ~3% per year, creating significant gaps between assessed and market value in appreciating markets
Measure 5 limits total tax rates for education and general government
Oregon has no general sales tax, making property and income taxes the primary revenue sources
The senior/disabled deferral program allows qualifying homeowners to defer taxes as a lien
Bonded indebtedness levies are exempt from Measure 5 rate limits

Next Steps

State Income Tax Rates Comparison 2026 — See Oregon’s overall tax picture.
Federal Income Tax Guide 2026 — Understand property tax deductions on your federal return.
Tax Bracket Calculator — Estimate your combined federal and state liability.
Best States for Retirees: Tax Guide 2026 — Evaluate Oregon’s tax environment for retirement.
Find a CPA Near You — Get professional Oregon tax help.