State and Local Sales Tax Rates, 2026
Retail sales taxes are an essential part of most states’ revenue toolkits, responsible for nearly a quarter of combined state and local tax collections.
14 min read
Oregon | #35 Overall
Oregon forgoes a sales tax but doubles down on other forms of taxation. The state has a complex and progressive individual income tax system with four tax brackets, a top marginal rate of 9.9 percent, and a personal exemption structured as a tax credit. Additionally, the tax brackets are not adjusted for inflation. Portland has the highest combined local income tax rate in the nation (4 percent), adding an extra layer of tax burden for residents of the state’s largest city.
The absence of a sales tax in Oregon is offset by an overly complex corporate tax system, which includes a 7.6 percent corporate income tax, a 0.57 percent gross receipts tax (the Corporate Activity Tax), and additional corporate taxes at the local level, particularly in the Portland area. Although gross receipts taxes typically do not allow any deductions from gross sales, the CAT provides a 35 percent deduction for either labor costs or the cost of goods sold. However, this does not significantly improve Oregon’s competitiveness in attracting businesses, as the state’s corporate tax system ranks among the worst in the nation, comparable to Delaware, the only other state to combine corporate income and gross receipts taxes.
Oregon’s property tax system is moderately competitive, though the property tax burden relative to personal income is higher than in California and Washington. Additionally, the state imposes an estate tax with a maximum rate of 16 percent and the lowest estate tax exemption among states that levy the tax ($1 million), which further reduces the state’s competitiveness for high-net-worth individuals.
| Category | Rank | Rank Change | Score |
|---|---|---|---|
| Overall | 35 | -2 | 4.92 |
| Corporate Taxes | 49 | 0 | 2.28 |
| Individual Income Taxes | 41 | -1 | 4.58 |
| Sales Taxes | 4 | 0 | 8.31 |
| Property Taxes | 28 | 4 | 5.04 |
| Unemployment Insurance Taxes | 41 | 0 | 4.27 |
- Learn more about Oregon Taxes
-
Share your state results
Compare Neighboring States
Tax Data by State
Get facts about taxes in your state and around the US
More on Oregon
State Corporate Income Tax Rates and Brackets, 2026
Forty-four states levy a corporate income tax, with top rates ranging from a 2 percent flat rate in North Carolina to an 11.5 percent top marginal rate in New Jersey. Four states—Georgia, Nebraska, North Carolina, and Pennsylvania—reduced their corporate income tax rates effective January 1, 2026.
5 min read
State Taxation of Data Centers
Data centers face high tax burdens and are particularly substantial contributors to local coffers, but poor tax structure can drive these operations to other locations and deprive local governments of a major revenue stream.
22 min read