State estate tax

Oregon estate tax in 2026

Short answer: Yes. Oregon taxes estates of $1 million or more, the lowest threshold of any state, at rates from 10% to 16%. The first $1 million is exempt and the threshold is not indexed for inflation.

Oregon at a glance

Tax typeEstate tax
Estate tax exemption, 2026 deaths$1,000,000
Top rate16%
Portability to a surviving spouseNo

How the Oregon estate tax works

  • An Oregon return is required when the gross estate is $1 million or more and includes property Oregon can tax.
  • Rates start at 10% on taxable value from $1 million to $1.5 million and reach 16% above $9.5 million.
  • The Oregon Department of Revenue's example shows a $1.7 million taxable estate owing $70,500 before credits.
  • Initiative Petition 51 would repeal the tax. Check whether it qualified for or passed at the ballot before relying on this page for a future death.

Planning points

  • A paid-off house and a retirement account are often enough to cross $1 million, so Oregon estate planning reaches far more families than federal planning does.
  • Couples need a trust at the first death to use both $1 million exemptions, since Oregon has no portability.
  • Oregon offers a natural resource credit for qualifying farm, forest and fishing property.

Common questions

Does Oregon have an estate tax in 2026?

Yes. Oregon taxes estates of $1 million or more, the lowest threshold of any state, at rates from 10% to 16%. The first $1 million is exempt and the threshold is not indexed for inflation.

Is the Oregon exemption indexed for inflation?

No. It has been $1 million since 2012.

Does Oregon allow portability?

No. Each spouse's $1 million exemption is lost unless it is used at that spouse's death, usually through a trust.

Sources and limitations

Educational summary, not tax or legal advice. State death taxes have many exceptions that depend on residence, where property is located and who inherits. Confirm figures with the state agency or an estate attorney before filing. See the planning glossary for terms such as portability and credit-shelter trust.

Other states

Planning around Oregon tax?

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