Oregon’s property tax system is famously convoluted, governed by two landmark ballot measures (Measure 5 and Measure 50) that aggressively cap tax rates and strictly limit the growth of assessed values to 3% a year. This keeps the statewide effective rate incredibly low at 0.81%, despite explosive West Coast real estate prices (est., Tax Foundation 2026).
Oregon does not have a general sales tax. To fund local government, the state leans heavily on property taxes and income taxes. However, severe voter-approved caps from the 1990s have created a highly complex system that heavily favors long-time homeowners while confusing new buyers.
Measure 50: The 3% Assessment Cap (MAV vs RMV)
In 1997, Oregon voters passed Measure 50, fundamentally changing how property is taxed. You are no longer taxed on your home’s Real Market Value (RMV). Instead, you are taxed on its Maximum Assessed Value (MAV).
Measure 50 dictated that a property’s MAV can never increase by more than 3% per year, regardless of how much the true housing market explodes. Because housing prices in Oregon have vastly outpaced 3% annual growth for decades, a home’s taxable MAV is often tensor hundredsof thousands of dollars lower than what the house would sell for today.
(Note: If you build an addition or majorly remodel, the assessor can calculate a new, higher MAV).
Oregon statewide effective rate. On a $500,000 home, expect approximately $4,050 per year at the statewide average. (est., Tax Foundation 2026).
| Home Value | Annual Tax (est.) | Monthly Payment | vs. U.S. Average |
|---|---|---|---|
| $300,000 | $2,430 | $202 | -$270 below avg. |
| $500,000 | $4,050 | $337 | -$450 below avg. |
| $750,000 | $6,075 | $506 | -$675 below avg. |
| $1,000,000 | $8,100 | $675 | -$900 below avg. |
| $1,500,000 | $12,150 | $1,012 | -$1,350 below avg. |
Estimates use 0.81% statewide effective rate. U.S. average uses 0.90%. Source: est., Tax Foundation / Census ACS.
Measure 5: Hard Caps on Tax Rates
Passed in 1990, Measure 5 prevents local governments from taxing property into oblivion. It sets a strict constitutional limit on the rates that can be charged:
- Education taxes are capped at $5.00 per $1,000 of Real Market Value.
- General Government taxes are capped at $10.00 per $1,000 of Real Market Value.
If local levies ever exceed these limits, a process called “compression” legally forces the assessor to reduce the tax rates until they fit under the constitutional $15/$1,000 ceiling.
Exemptions and the Senior Deferral Program
Oregon offers a few key property tax relief programs for vulnerable residents:
- Disabled Veteran Exemption: Exempts a specific portion of the assessed value for veterans (or surviving spouses) with a 40%+ VA-certified disability rating.
- Active Duty Exemption: Available for military service members (including Guard/Reserve) deployed or serving on ordered active duty for more than 179 days.
- Senior/Disabled Deferral Program: Allows qualifying residents aged 62+ (or those receiving Social Security disability) to defer their property taxes entirely. The State of Oregon pays the county on your behalf and places a lien on the home. The deferred taxes, plus interest, must be repaid when the home is sold or changes ownership.
Estimated Tax Rates Across the Top 10 Counties
The Portland metro area heavily influences Oregon’s average. Clackamas County and Multnomah County levy the highest effective rates in the state (approaching 1.09% and 0.98% respectively) to fund extensive urban infrastructure and transit. More rural and southern counties, like Douglas and Yamhill, enjoy significantly lower effective rates.
| County | Effective Rate | Annual Tax on $500k Home | Notes |
|---|---|---|---|
| Multnomah County | 0.98% | $4,900 | Includes Portland; highest population. |
| Washington County | 0.84% | $4,200 | Portland suburbs (Hillsboro/Beaverton). |
| Clackamas County | 1.09% | $5,450 | Portland suburbs; highest top 10 rate. |
| Lane County | 0.77% | $3,850 | Includes Eugene. |
| Marion County | 0.87% | $4,350 | Includes Salem (State Capital). |
| Jackson County | 0.83% | $4,150 | Includes Medford. |
| Deschutes County | 0.87% | $4,350 | Includes Bend (rapidly growing). |
| Linn County | 0.84% | $4,200 | Includes Albany. |
| Douglas County | 0.64% | $3,200 | Includes Roseburg; very low rate. |
| Yamhill County | 0.70% | $3,500 | Includes McMinnville. |
Disclaimer and Methodology
This calculator provides estimates for planning purposes only, based on effective property tax rates (actual median taxes paid divided by median home values). Oregon’s property tax system is governed by Measure 50, which taxes property on an artificially capped “Maximum Assessed Value” (MAV) rather than true market value. Because MAVs are highly individualized based on when a home was built, this calculator uses historical “effective rates” to simulate the average homeowner’s burden relative to true market value.
What this calculator does not account for:
- New construction, major remodeling, or rezoning, which triggers an assessor to recalculate a property’s base MAV.
- Voter-approved local option levies or bond measures, which are layered on top of the base rates.
How to get an accurate estimate:
- Find your home’s Maximum Assessed Value (MAV) on your County Assessor’s property search tool.
- Multiply the MAV by your local consolidated tax rate (which includes all city, county, and school districts).
- Check if your combined rate exceeds the Measure 5 caps ($5/$1000 for education; $10/$1000 for government). If so, compression will reduce your bill.
Data sources: Statewide effective rate and aggregate county effective rates derived from the Tax Foundation, Census ACS, and SmartAsset aggregations. Statutory rules, Measure 5/Measure 50 details, and 2025 legislative study mandates sourced from the Oregon Department of Revenue.
Return to the National Property Tax Calculator to compare Oregon with other states.
