How Much Are Property Taxes in Oregon?

Property taxes in Oregon are a significant financial responsibility for homeowners, funding local public services like schools, police, fire protection, and road maintenance. The amount of property tax paid can vary considerably across different locations within Oregon, reflecting the diverse needs and funding structures of local jurisdictions.

How Oregon Property Value is Assessed

The process of determining a property’s value for tax purposes in Oregon begins with the county assessor’s office. Each year, the assessor establishes two primary valuation concepts for every property: Real Market Value (RMV) and Assessed Value (AV). Real Market Value represents the price a property would likely sell for in an open market transaction as of January 1, the assessment date for the tax year. Assessors determine RMV by analyzing sales data of comparable properties, considering building costs, and for commercial properties, evaluating potential net operating income.

Oregon’s property tax system limits the growth of Assessed Value (AV). This specifies that a property’s Assessed Value generally cannot increase by more than 3% annually from its prior year’s AV, unless there are specific property events like new construction or major remodeling. The Assessed Value used for tax calculation is ultimately the lower of the Real Market Value or the Maximum Assessed Value (MAV). For most properties, the MAV limits the AV, keeping taxes more predictable. Exceptions to this cap, such as new construction, additions, or changes in zoning, can cause the Assessed Value to increase more significantly.

Determining Your Property Tax Liability

Once the Assessed Value (AV) of a property is established, the actual tax amount is calculated by applying approved tax rates. Local governing bodies, including cities, school districts, and special districts, determine their funding needs through approved levies. These levies are then translated into specific tax rates, often expressed as dollars per $1,000 of Assessed Value. A property’s total tax rate is the sum of all applicable levies from the various districts serving its specific geographic location.

To calculate the base property tax, the Assessed Value is multiplied by the total tax rate. For instance, if a property has an Assessed Value of $300,000 and the combined tax rate is $15 per $1,000 of AV, the base tax would be ($300,000 / $1,000) $15 = $4,500.

Oregon limits the total tax rate applied to a property’s Real Market Value (RMV) for operating levies. Specifically, taxes for education are limited to $5 per $1,000 of Real Market Value, and taxes for general government services are limited to $10 per $1,000 of Real Market Value. These rate limits can lead to a reduction in taxes through “compression” if combined rates exceed them. Bond levies, typically approved by voters for specific projects like new schools or infrastructure, are generally exempt from these limits.

Reducing Your Property Tax Burden

Oregon offers several programs and avenues for eligible homeowners to potentially reduce their property tax obligations.

Veteran’s Exemption

One program is the Veteran’s Exemption, available to disabled veterans or their surviving spouses. For 2025, qualifying veterans with a certified disability rating of 40% or more may be entitled to exempt $26,303 of their homestead property’s assessed value, while those with a 40% or higher service-connected disability can exempt $31,565. These exemption amounts increase by 3% each year. To apply, claims must be filed with the county assessor’s office by April 1 for the upcoming tax year, requiring documentation like proof of honorable discharge and disability certification.

Senior and Disabled Citizen Deferral

Another program is the Senior and Disabled Citizen Deferral, which allows eligible individuals to postpone the payment of their property taxes. The state pays the taxes on behalf of the homeowner, placing a lien on the property and accruing interest at a rate of 6% annually. Eligibility typically includes age (62 or older for seniors) or disability status, income limits (e.g., $60,000 household income for 2025), net worth limits ($500,000 excluding the home), and a minimum residency period. The deferred taxes, along with accrued interest, become due when the property is sold, the owner dies, or the property changes ownership.

Property Value Appeals

Homeowners who believe their property’s Real Market Value assessment is incorrect have the right to appeal this valuation. This process involves contacting the county Board of Property Tax Appeals by a specific deadline, typically December 31. Appeals must be based on the property’s valuation, not on the total tax amount, and require supporting evidence such as appraisal reports or comparable sales data.

Property Tax Statements and Payment

Property tax statements are mailed to homeowners by the county tax collector, typically by October 25 each year. These statements provide a detailed breakdown of the property’s identification number, its Real Market Value, and its Assessed Value. The statement also lists the tax rates for the various taxing districts that apply to the property, such as school districts, cities, and fire districts, along with the total tax due. The tax year covered by the statement runs from July 1 through June 30.

Homeowners have several options for paying their property taxes. Payments can often be made online through the county tax collector’s website, via mail, or in person at the county tax office.

Oregon provides a payment schedule that offers flexibility: taxpayers can pay the full amount by November 15 to receive a 3% discount, or pay two-thirds of the tax by November 15 for a 2% discount. Alternatively, taxes can be paid in three equal installments, with due dates typically on November 15, February 15, and May 15. If a due date falls on a weekend or legal holiday, the deadline is extended to the next business day. Penalties and interest begin to accrue on past due installment payments, with interest on the first one-third of taxes starting December 16. Property owners are responsible for ensuring timely payment, even if a tax statement is not received.