What Is the Property Tax Rate in Oregon?

Oregon’s property tax system is not based on a single, uniform statewide rate, but rather operates within a framework established by specific constitutional limitations. These taxes are collected locally and serve as a primary funding source for various public services, including schools, libraries, public safety, and other local government operations. The amount property owners pay depends on the property’s determined value and the specific local taxing districts it is located within.

Oregon’s Property Tax Framework

Oregon’s property tax landscape is uniquely shaped by two significant ballot measures: Measure 5, passed in 1990, and Measure 50, enacted in 1997. These constitutional amendments fundamentally altered how property taxes are limited and calculated, moving the state from a levy-based system to one primarily driven by rates and value caps.

Measure 5 established constitutional limits on the amount of property tax that can be levied based on a property’s Real Market Value (RMV). It caps taxes for schools at $5 per $1,000 of RMV and for general government operations at $10 per $1,000 of RMV. If combined tax rates for either category exceed these limits, “compression” occurs, reducing the taxes until the cap is met. This measure significantly shifted the responsibility for school funding from local property taxes to the state.

Measure 50 further refined the system by introducing “Maximum Assessed Value” (MAV) and placing limitations on its annual growth. MAV typically increases by no more than 3% per year, regardless of market fluctuations, providing predictability for property owners. This measure also established permanent tax rates for each existing taxing district, which generally cannot be increased without voter approval.

Determining Your Property’s Assessed Value

Understanding your property’s assessed value in Oregon requires distinguishing between its Real Market Value (RMV) and Maximum Assessed Value (MAV). These two values are central to how your property taxes are ultimately determined, as the Assessed Value (AV) used for taxation is derived from them. Each year, county assessors are responsible for determining these values for all properties within their jurisdiction.

Real Market Value (RMV) represents the price a property would likely sell for in a typical transaction on January 1st. County assessors establish RMV by appraising properties, considering factors such as recent sales data, location, size, and condition. This value reflects the property’s current market worth.

The Maximum Assessed Value (MAV) is a constitutionally limited value established by Measure 50. The initial MAV for each property was set in the 1997-98 tax year, typically at 90% of its 1995-96 RMV. For subsequent years, MAV increases by no more than 3% annually, providing a cap on how quickly your taxable value can grow.

Your property’s Assessed Value (AV), used for property tax calculations, is the lower of the RMV or the MAV. For example, if a property’s RMV is $400,000 and its MAV is $300,000, the AV will be $300,000. If the RMV falls to $280,000 while the MAV remains at $300,000, the AV would then be $280,000. New construction or significant additions can cause MAV to be recalculated, potentially increasing it beyond the 3% cap to reflect the added value.

Calculating Your Property Tax Bill

Calculating your property tax bill in Oregon involves understanding local government entities and how their rates apply to your property’s Assessed Value. Your total tax bill is the sum of individual taxes levied by taxing districts, such as counties, cities, school districts, fire districts, and community colleges.

Each taxing district has its own approved tax rate or levy. These include permanent rates (established after Measure 50 and generally fixed) and temporary local option levies or bond measures. Local option levies and bond measures require voter approval and fund specific projects or services. Bonds often finance capital improvements like school buildings and are generally exempt from Measure 5 limits.

The tax for each district is calculated by multiplying your property’s Assessed Value (AV) by that district’s specific tax rate. For example, if a school district has a rate of $2.50 per $1,000 of AV and your property’s AV is $200,000, the tax for that district would be $500. The sum of these individual district calculations, along with any special assessments, determines your total annual property tax bill.

The constitutional limits imposed by Measure 5 and Measure 50 significantly influence this calculation. Measure 5’s caps ($5 per $1,000 of RMV for schools and $10 per $1,000 of RMV for general government) can lead to “compression,” where total taxes are reduced if they exceed these limits. This means that even if a district’s statutory rate applied to your AV results in a higher amount, the actual tax paid may be compressed to meet the Measure 5 RMV-based limits.

Accessing Specific Property Tax Information

To understand your specific property tax obligations or to research details about any property in Oregon, the county assessor’s office serves as the primary resource. Each county maintains comprehensive records for all properties within its jurisdiction, providing transparency regarding valuations and tax assessments.

Most Oregon counties provide online portals or websites where you can search for property tax information. These platforms typically allow you to look up property details by address, owner name, or property account number. Through these portals, you can often find information such as Real Market Value (RMV), Maximum Assessed Value (MAV), Assessed Value (AV), tax bill history, applicable taxing districts, and payment status.

Annually, typically in October, property owners receive an official property tax statement. This statement is a crucial document that itemizes the various components of your tax bill. It details your property’s assessed value, lists the tax rates for each taxing district, and provides the total amount due. The statement also indicates payment due dates, which are generally November 15th, February 15th, and May 15th, often with discounts available for earlier full or two-thirds payments.

If you require further clarification or assistance, contacting your county assessor’s office directly is recommended. They can provide personalized support, answer specific questions about your property’s assessment, and guide you through the local tax system. Many offices offer assistance via phone or in-person consultations.

Common Exemptions and Deferrals

Oregon offers several programs that can reduce or postpone property tax payments for eligible individuals and properties, providing relief for those who qualify. These programs assist certain homeowners based on age, disability, or property use. Applying for these benefits involves meeting specific criteria and submitting applications to relevant county or state agencies.

The Senior Citizen and Disabled Homeowner Deferral Program allows qualifying individuals to postpone paying their property taxes. Eligibility requires the applicant to be at least 62 years old or receiving federal Social Security disability benefits, meet specific household income limits (e.g., $60,000 for 2025), and own and reside in the property for a certain period (typically five years). While taxes are deferred, they accrue interest (typically 6% annually) and must be repaid upon the sale of the home, the owner’s death, or other disqualifying events. A lien is placed on the property to secure the deferred amount.

Disabled veterans and their surviving spouses may be entitled to property tax exemptions. To qualify, veterans need a service-connected disability rating of at least 40% from the Department of Veterans Affairs or certification by a licensed physician. These exemptions reduce the assessed value of the homestead property, lowering the tax bill. The filing period for this exemption is between January 1st and April 1st of the assessment year.

Properties used for farming or forestry may qualify for a special assessment, valued based on their agricultural or timber-producing capability rather than full market value. This can result in a lower tax burden, provided the property meets and maintains the requirements for such special assessment. Certain non-profit organizations (religious, charitable, literary, fraternal, and scientific institutions) may be eligible for property tax exemptions if their property is actively used for their stated purposes.