How Oregon Property Tax Works
Oregon’s property tax system is governed by Measure 50, passed in 1997. Unlike most states, your tax is based on assessed value, not market value. Assessed value can only increase by 3% per year, regardless of how much the market value increases. This means long-held properties often have assessed values well below market value.
Assessed Value vs. Market Value
When you buy a property, the assessed value resets to the lesser of the purchase price or the real market value, then grows by up to 3% annually. This means a home that was assessed at $200,000 for a longtime owner might reset to $400,000 when you buy it, significantly increasing the tax bill.
Tax Rates by Area
Tax rates vary by location and the tax districts that serve the property. In Lane County, rates typically range from $12 to $18 per $1,000 of assessed value. Eugene properties tend toward the higher end; rural unincorporated areas tend toward the lower end.
Compression
Oregon law caps the total tax rate, causing compression when the combined rates of all districts exceed the limit. This effectively reduces your actual tax bill below what the rates would suggest. Compression benefits properties in areas with many overlapping tax districts.
What This Means for Buyers
When evaluating a property, look at the current tax bill and understand that your bill may be different once the assessed value resets. I include a tax estimate in my analysis for every property. For rural properties with special assessments (like farm deferral), the tax picture can change significantly at sale.
