At a glance
| State estate tax | Yes — exemption $1,000,000ORS 118.010; Ore. DOR — Estate Transfer Tax · 2026 |
|---|---|
| Estate top rate | 16%ORS 118.010(4) rate table · 2026 |
| 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. 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
- ← Back to the 51-jurisdiction comparison
Sources & methodology
Methodology & sources
Every tax figure on this page links to the primary source it was verified against — a Oregon statute or department-of-revenue page — with that source’s own effective date. Aggregator round-ups are never used as a source. State death and probate law changes every legislative session; this page carries the date it was last re-verified, and any figure that could not be confirmed from a primary source is flagged for you to check with the state rather than guessed. See our editorial standards.
This page is educational and is not legal or tax advice. Whether a death tax applies turns on residency, where property sits, and how title is held — details a general page cannot resolve. Confirm your own situation with a professional licensed in Oregon.
Last verified July 20, 2026.