At a glance
| State estate tax | Yes — exemption $1,000,000ORS 118.010 (estate transfer tax; rate table at ORS 118.010(4)) · 2026 deaths |
|---|---|
| Estate top rate | 16%ORS 118.010 (estate transfer tax; rate table at ORS 118.010(4)) · 2026 deaths |
| Inheritance tax | No |
| Small-estate ceiling | $275,000ORS 114.505–114.560 · current |
| TOD deed for real estate | AvailableORS 93.948–93.985 (Uniform Real Property TOD Act) · adopted 2011 |
| Community-property state | No |
Estate tax
Oregon imposes its own estate transfer tax on estates with a gross value of $1,000,000 or more; an estate below $1,000,000 owes no tax and files no return (ORS 118.010). That threshold is a tiny fraction of the 2026 federal exclusion, so many Oregon families who owe nothing federally still owe Oregon tax — a paid-off home plus retirement savings and life insurance can clear $1,000,000 easily.
The tax is a true marginal tax applied only to the amount above $1,000,000. Rates begin at 10% on the first $500,000 over the threshold and rise through the ORS 118.010(4) bracket table to a top marginal rate of 16% on value at or above $9,500,000. There is no cliff — only the excess over the exclusion is taxed.
Oregon provides no portability of the $1,000,000 exclusion between spouses, so a married couple typically needs credit-shelter or bypass-trust planning to use both exclusions. Farm, forestland, and commercial-fishing property used by the family can qualify for substantial relief under ORS 118.140 and 118.145, subject to strict use and ownership conditions.
Inheritance tax
Oregon has no inheritance tax — beneficiaries are not taxed on what they receive by the state. Oregon has no separate inheritance tax; its former inheritance tax was replaced by the estate transfer tax for deaths on or after January 1, 2012.
Probate basics
Oregon's small-estate affidavit (ORS 114.505–114.560) avoids full probate when no more than $75,000 of the estate is personal property and no more than $200,000 is real property — an effective ceiling of $275,000.
Oregon is a common-law (separate-property) state for ownership between spouses. A transfer-on-death deed for real estate is Available ORS 93.948–93.985 (Uniform Real Property TOD Act) · adopted 2011 — see the full Oregon transfer-on-death deed guide for the requirements, revocation, and alternatives. The probate deadlines for this state — filing the will, the creditor-claim window, the inventory — are cited in the Executor & Heir’s Guide.
State-specific quirks
One of the lowest thresholds in the country
Oregon taxes estates starting at $1,000,000 while the 2026 federal exclusion is measured in the millions. Families with a paid-off home, retirement accounts, and life insurance routinely exceed $1,000,000 and owe Oregon estate tax despite owing nothing federally.
No spousal portability
Oregon does not let a surviving spouse inherit a deceased spouse's unused $1,000,000 exclusion. Without a credit-shelter or bypass trust, a married couple can effectively waste one full exclusion at the first death.
Natural-resource relief
Family farm, forestland, and commercial-fishing property can qualify for a credit or exemption of up to several million dollars under ORS 118.140 and 118.145 — but the qualified-use, ownership, and family-transfer rules are strict, so confirm eligibility before relying on it.
Where to read next
- the federal lifetime exemption — how the far larger federal exclusion works — and why a state tax can still apply below it
- funding a revocable trust — the most common way to keep property out of probate entirely
- the ILIT cluster — keeping a life-insurance death benefit out of a taxable estate
- the Executor & Heir's Guide — the probate deadlines for this state, cited to the statute
- Oregon small-estate procedure — the state’s simplified transfer or administration route, eligibility rules, and claimant responsibilities.
- ← Back to the 51-jurisdiction comparison
Sources & methodology
Methodology & sources
Estate and inheritance tax figures reviewed by Sakineh Majd, J.D. — Maine Bar #004999 · 2026-07-24. The review memo explains its scope and source checks.
Tax figures include citations and source effective dates. Unconfirmed figures direct readers to the state. Aggregator roundups are not sources. See our editorial standards.
General information, not legal or tax advice. Residency, property location, and title can change the result. A professional licensed in Oregon can assess your situation.
Last verified July 18, 2026.