Family · Estate tax
Does Oregon Have an Estate Tax?
Whether Oregon levies its own estate tax, the exemption threshold that decides if an estate owes anything, and what a surviving spouse inherits tax-free. Estate tax is separate from any inheritance tax. Cited to the statute.
How the estate tax works in Oregon
The exemption threshold, how the tax applies only to value above it, and the transfers the law leaves untaxed.
Oregon’s SB405 (2025) would have conformed the exemption to the federal basic exclusion amount but stalled in committee when the session adjourned in June 2025. Lawmakers may revisit the $1,000,000 threshold. Confirm the current exemption before relying on it.
| How the tax works | What it means |
|---|---|
| The estate pays, above a $1,000,000 exemption | Oregon taxes the estate itself, not the heirs. No tax is due unless the Oregon taxable estate is worth more than $1,000,000. Below that figure the estate owes nothing to the state. |
| Graduated rates from 10% to 16% | Once the estate is over $1,000,000, the tax is figured on a bracket table under ORS 118.010. The rate starts at 10% on the first amounts above the exemption and climbs to 16% on the largest estates. |
| The exemption is not indexed to inflation | The $1,000,000 figure has not been adjusted for inflation, so more estates cross the threshold over time than when the amount was set. A return (Form OR-706) is generally due nine months after the death. |
| What is exempt | What it means |
|---|---|
| Unlimited marital deduction | Property that passes to a surviving spouse is deducted in full, so a transfer to a spouse is not taxed no matter its size. Tax may apply later when the surviving spouse dies. |
| Charitable transfers | Gifts to qualifying charities are deducted from the taxable estate. Amounts left to charity are not counted when the estate is measured against the $1,000,000 exemption. |
| No portability between spouses | Oregon does not let a surviving spouse carry over a deceased spouse’s unused exemption. Each estate uses its own $1,000,000, so planning matters for married couples with combined assets over that figure. |
What you can do right now
Concrete, neutral steps if an estate in Oregon may be near the threshold. This is general information, not tax or legal advice.
- Add up the gross estate
Total the value of everything the person owned at death, including real estate, accounts, and life insurance they controlled. If the Oregon taxable estate is over $1,000,000, a state return is likely required.
- File Form OR-706 on time
The Oregon estate transfer tax return is Form OR-706, filed with the Department of Revenue. It is generally due within nine months of the death. Ask about extensions before the deadline passes.
- Apply the marital and charitable deductions
Subtract transfers to a surviving spouse and to qualifying charities before measuring the estate against the exemption. These deductions can lower or remove the tax.
- Get help for estates near or over $1,000,000
Because the exemption is low and not indexed, estates that seem modest can owe Oregon tax. Confirm the figures with the Department of Revenue or an estate attorney before filing.
Estate tax turns on the total value of the estate and the current exemption. The state department of revenue publishes the return and the threshold in effect for the year of death.
→ Oregon Department of Revenue: Estate Transfer TaxThis is general information, not tax or legal advice. Thresholds change and large estates have planning options, so confirm the current figure against the statute or with the state revenue office.
What people in Oregon get wrong about estate tax
Oregon levies a state estate tax, and its exemption is the lowest in the country. The tax is paid by the estate itself before anything passes to heirs, and it kicks in once the Oregon taxable estate is worth more than $1,000,000. That figure is set in statute and is not adjusted for inflation, so it catches more estates over time than a higher, indexed exemption would. Above the line, the rate is figured on a bracket table under ORS 118.010 that runs from 10% up to 16% on the largest estates. Transfers to a surviving spouse are fully deductible, and so are gifts to qualifying charities, which can lower or remove the tax. Oregon does not allow portability, meaning a surviving spouse cannot carry over a late spouse’s unused exemption. Keep this separate from an inheritance tax, which the heir would pay based on relationship. Oregon has an estate tax but no inheritance tax, and the federal estate tax, with a much higher exemption, can still apply on top.
Common questions
Does Oregon have an estate tax?
Yes. Oregon levies a state estate tax under ORS Chapter 118. The estate pays it, and it applies only when the Oregon taxable estate is worth more than $1,000,000. Rates run from 10% to 16%.
What is the estate tax exemption in Oregon?
The exemption is $1,000,000, the lowest state estate-tax threshold in the country. It is not indexed to inflation. Estates worth less than that owe no Oregon estate tax.
Who pays Oregon estate tax, the estate or the heirs?
The estate pays it before assets are distributed. This is different from an inheritance tax, which the heir would pay. Oregon has no inheritance tax.
Are transfers to a spouse taxed in Oregon?
No. Oregon allows an unlimited marital deduction, so property that passes to a surviving spouse is not taxed, no matter its value. Tax may apply later when that spouse dies.
Did Oregon raise its estate tax exemption?
No. A 2025 bill (SB405) would have raised the exemption to match the federal figure, but it stalled in committee. The $1,000,000 exemption remains in force. Confirm the current law before relying on it.
Not legal advicePlainStatute provides plain-language summaries of public law for general information only. This is not legal advice. Statutes change; always confirm current requirements with the official source linked above before acting.