Oregon state estate tax
We handle Oregon state estate tax for executors and families: what an estate owes, the Oregon return and planning to reduce it. Oregon taxes estates from $1 million, against a $15 million federal exemption for 2026 deaths, so an estate can owe Oregon tax and no federal tax.
How Oregon state estate tax works
- The executor of an estate worth $1 million or more at the date of death files Form OR-706, the Oregon Estate Transfer Tax Return.
- Oregon charges 10% on the first $500,000 over $1 million, rising by bracket to 16% above $9.5 million.
- The executor pays the tax with the return 12 months after death; Oregon grants a six-month extension to file (Form OR-706-EXT) but not to pay.
What is the Oregon estate tax exemption in 2026?
$1 million. Oregon charges no tax on the first $1 million of the taxable estate, because Oregon begins its rate table at that amount (ORS 118.010). The amount has no inflation adjustment. Oregon includes a home, retirement accounts and life insurance the decedent owned in the estate value.
Is there an Oregon inheritance tax?
No. Oregon taxes the estate before heirs receive anything, and the executor pays that tax from the estate.
What are the Oregon estate tax rates?
| Oregon taxable estate | Tax on the lower amount | Rate on the excess |
|---|---|---|
| $1,000,000 to $1,500,000 | $0 | 10% |
| $1,500,000 to $2,500,000 | $50,000 | 10.25% |
| $2,500,000 to $3,500,000 | $152,500 | 10.5% |
| $3,500,000 to $4,500,000 | $257,500 | 11% |
| $4,500,000 to $5,500,000 | $367,500 | 11.5% |
| $5,500,000 to $6,500,000 | $482,500 | 12% |
| $6,500,000 to $7,500,000 | $602,500 | 13% |
| $7,500,000 to $8,500,000 | $732,500 | 14% |
| $8,500,000 to $9,500,000 | $872,500 | 15% |
| Over $9,500,000 | $1,022,500 | 16% |
How much is Oregon estate tax on a $2 million estate?
$101,250: $50,000 on the first $1.5 million, plus 10.25% of the $500,000 above it.
| Oregon taxable estate | Oregon estate tax |
|---|---|
| $1,200,000 | $20,000 |
| $1,700,000 | $70,500 |
| $2,000,000 | $101,250 |
| $3,000,000 | $205,000 |
| $5,000,000 | $425,000 |
Assumptions: the whole estate is in Oregon, and each estate figure is the taxable estate after deductions and before credits.
Who has to file an Oregon estate tax return?
The executor or personal representative files Form OR-706 in any of these cases (Oregon DOR):
- The decedent was an Oregon resident with an estate worth $1 million or more
- The decedent lived elsewhere, had an estate worth $1 million or more, and owned real estate or tangible property in Oregon
- The executor made estimated payments before finding the estate was under $1 million, and is claiming a refund
Handling an Oregon estate, or planning your own? Give us a list of assets and rough values, and we work out whether the estate owes Oregon tax and when it is due.
Do nonresidents owe Oregon estate tax on property in Oregon?
They can. The executor of a Washington resident with a coast house in Oregon files Form OR-706 if the whole estate is worth $1 million or more. Oregon figures the tax on the full estate, then charges only the share located in Oregon. Washington has its own estate tax, so the same family can file in both states.
How can you avoid Oregon estate tax?
- 1Executors deduct property left to a surviving spouse (the marital deduction) and bequests to charity
- 2Couples place the first spouse's $1 million in a credit shelter trust, outside the survivor's estate
- 3Executors can make the Oregon Special Marital Property election instead, since Oregon has no portability: the survivor cannot use the first spouse's unused amount
- 4Families who keep running a qualifying farm, forest or fishing business can claim Oregon's natural resource credit
- 5Gifts during your lifetime, since Oregon has no gift tax, though the executor still reports lifetime transfers on the return
Oregon estate tax help for executors and families
- Form OR-706, and the federal Form 706 when the estate owes federal tax or the surviving spouse wants to keep the unused federal exemption
- Estate and trust income tax returns, and the final personal returns
- Gift tax returns and trust administration
- Estate planning: allocating assets to spouses, children, trusts and charities
- Beneficiary designation and account titling reviews, coordinated with your attorney
- Business succession planning, including valuation and buy-sell agreements
Get an Oregon estate tax estimate
Bring the date of death and a list of assets with their locations, or your own asset list if you are planning ahead. We estimate the Oregon tax and set out the filing and payment dates.
(503) 388-4353info@daytaxaccounting.com555 SE Martin Luther King Jr Blvd, Suite 105, Portland, OR 97214