Oregon does not have a statewide sales tax

Oregon is one of five U.S. states with no sales tax at all. When you buy something in an Oregon store or online from an Oregon retailer, there is no sales tax added to your bill at checkout. This applies to most goods — clothing, groceries, electronics, furniture, and nearly everything else you might purchase in person or have shipped to an Oregon address.

The absence of sales tax does not mean Oregon has no taxes. The state funds schools, roads, and services through income tax instead. Oregon's income tax rate ranges from 4.75% to 9.9% depending on your income bracket, which is higher than many other states. But at the point of purchase, you pay the price on the tag — nothing more.

Key Takeaways

  • Oregon has no statewide sales tax, so purchases in Oregon stores do not have tax added at checkout.
  • Some specific items are taxed in Oregon: gasoline, cigarettes, alcohol, and marijuana each have their own excise taxes.
  • If you buy something online from a retailer outside Oregon and have it shipped to an Oregon address, you may owe Oregon use tax, though enforcement is limited.
  • Oregon funds state services through income tax rather than sales tax, so residents pay tax on wages instead of purchases.

What items do have tax in Oregon

Although Oregon has no general sales tax, certain products are subject to excise taxes — taxes on specific goods rather than all purchases. These include gasoline (roughly 36 cents per gallon as of 2024, though this changes), cigarettes, beer and wine, spirits, and recreational marijuana. You pay these taxes at the pump or at checkout, and they are included in the price you see.

Groceries, prescription medications, and medical devices are not taxed. Clothing is not taxed. Utilities like electricity and natural gas are not taxed. If you are used to states where these items carry sales tax, Oregon's system will feel noticeably cheaper for everyday purchases.

Online purchases and use tax

Oregon has a use tax that technically applies when you buy something outside Oregon and bring it into the state, or when you order online from an out-of-state retailer. The use tax rate matches what the sales tax would be in the state where you bought it. However, Oregon does not actively enforce use tax on individual consumers, and most people do not pay it.

If you order from Amazon, eBay, or another national retailer and have it shipped to an Oregon address, you typically will not see tax added. Some large retailers voluntarily collect sales tax in states where they have a physical presence, but Oregon has no sales tax to collect. The use tax exists on paper but is rarely collected from individual shoppers.

How Oregon's tax system compares to other states

Five states have no sales tax: Oregon, Montana, New Hampshire, Delaware, and Alaska. (Alaska does allow cities to impose local sales taxes, so some areas have them.) Most other states have sales taxes ranging from 4% to 7.25%, and many add local taxes on top of that. A $100 purchase in California costs $107.25 to $10.75 depending on the county; the same purchase in Oregon costs exactly $100.

This does not make Oregon cheaper overall. Oregon residents pay significantly more in income tax to make up the difference. Someone earning $60,000 per year in Oregon pays roughly $2,400 to $3,000 in state income tax. The tradeoff is that Oregon residents save money on purchases but pay more on wages.

What to know if you move to or from Oregon

If you are moving to Oregon from a state with sales tax, your grocery and clothing bills will drop noticeably. If you are moving away from Oregon, expect to pay sales tax on most purchases for the first time. Some people relocating to Oregon are surprised to find that the lack of sales tax does not offset the higher income tax — your actual tax burden depends on your income level and spending habits.

If you are ordering items online while living in Oregon, you may not see a price difference compared to ordering from other states, since most national retailers do not charge Oregon residents sales tax. The savings come from in-person shopping and from not paying tax on groceries and clothing.

Frequently Asked Questions

Do I pay sales tax if I buy something in Oregon and take it to another state?

No. Oregon sales tax does not follow you. Once you leave Oregon with a purchase, Oregon has no claim to tax it. If you later buy something in the state you move to, that state's sales tax applies. Oregon tax is based on where the purchase happens, not where you live.

Why does Oregon have no sales tax?

Oregon voters rejected sales tax proposals multiple times throughout the 20th century. The state chose to fund services through income tax instead. This is a policy choice, not an accident — Oregon has maintained this system for decades and continues to fund schools and infrastructure this way.

Do I owe Oregon use tax on things I buy online?

Technically yes, but Oregon does not enforce it against individual consumers. Use tax is meant to apply to out-of-state purchases, but the state focuses enforcement on businesses rather than shoppers. You will not receive a bill or notice for use tax on personal online purchases.

Are there any cities in Oregon with local sales tax?

No. Oregon prohibits cities and counties from imposing sales tax. The entire state has no sales tax at any level — state, county, or city. This is different from states like Washington, where the state has no sales tax but cities do.

What about tax on services like haircuts or car repairs?

Services are not taxed in Oregon. A haircut, car repair, dental work, or plumbing job costs what the business charges — no sales tax is added. This is another way Oregon's system differs from states that tax both goods and services.