Oregon has no statewide sales tax

Oregon is one of five states with no sales tax at all. You do not pay sales tax when you buy goods or services in Oregon, regardless of where the seller is located or whether you are a resident. This applies to clothing, groceries, electronics, and most other items.

The absence of sales tax does not mean Oregon has no taxes on purchases. The state uses other revenue sources, including income tax, which is higher than the national average. But at the point of sale in a store or online, there is no additional percentage added to your bill.

If you are buying something from an out-of-state seller and having it shipped to Oregon, you typically will not see Oregon sales tax added. However, some states require out-of-state sellers to collect sales tax on behalf of Oregon if Oregon has a use tax — and Oregon does have a use tax, though it is rarely enforced on individual purchases.

Key Takeaways

  • Oregon residents and visitors pay no sales tax on purchases made within the state.
  • Oregon's use tax technically applies to items purchased outside the state and brought in, but it is not collected at checkout and is rarely enforced on personal purchases.
  • Oregon funds state services through income tax, which is higher than many other states, rather than through sales tax.
  • If you buy something in another state and bring it to Oregon, you are not charged Oregon sales tax at the time of purchase.

How Oregon's use tax works

Oregon has a use tax that technically applies to goods you purchase outside Oregon and then use or store in the state. The rate matches what Oregon's sales tax would be if one existed — but Oregon has no sales tax, so the use tax rate is zero. This means the use tax produces no revenue and is not enforced on individual consumers.

The use tax exists mainly as a legal framework. Businesses that purchase items for resale or business use outside Oregon may owe use tax, but this is handled through business tax filings, not at the register. For personal purchases, you will not encounter it.

What this means for online shopping

When you order something online and have it shipped to an Oregon address, you will not see Oregon sales tax added to your total. Some online retailers collect sales tax for states where they have a physical presence or meet other thresholds, but Oregon's lack of a sales tax means there is nothing to collect.

If an online seller is based in a state with sales tax and ships to Oregon, they may still charge their home state's sales tax by mistake. This is rare with major retailers, but if it happens, contact the seller to request a refund — Oregon law does not require that tax.

Buying in other states and bringing items to Oregon

If you travel to Washington, California, or another state with sales tax and buy something there, you pay that state's sales tax at the register. You do not owe Oregon use tax when you bring the item home. Oregon does not track purchases made outside the state or charge additional tax on items you bring across the border.

This is one reason some Oregonians shop in neighboring states, though the savings depend on the other state's tax rate. Washington has no income tax but charges sales tax of 6.5 to 10.25 percent depending on the county. California charges both income tax and sales tax of 7.25 to 10.75 percent.

How Oregon funds state services without sales tax

Oregon relies on income tax as its primary revenue source. The state income tax rate ranges from 4.75 to 9.9 percent depending on income level, which is higher than the national average. Oregon also collects property tax, business taxes, and excise taxes on specific items like gasoline and cigarettes.

This tax structure means Oregon residents typically pay more in income tax than residents of states with sales tax. The tradeoff is that purchases cost less at the register, which benefits people on fixed incomes and those who spend a large portion of their income on goods.

Special taxes on specific items in Oregon

Although Oregon has no general sales tax, the state does charge excise taxes on certain products. These are built into the price you see, not added at checkout. Gasoline, diesel, cigarettes, and alcohol all carry state excise taxes.

Oregon also taxes marijuana sales at the point of retail. Licensed dispensaries charge a 20 percent tax on all cannabis products, which is included in the final price. This is a state-specific tax, not a sales tax, and applies only to legal cannabis purchases.

Frequently Asked Questions

Do I pay sales tax if I buy something in Oregon online?

No. Oregon has no sales tax, so online purchases shipped to Oregon addresses are not taxed. If a seller incorrectly charges Oregon sales tax, contact them to request a refund.

What if I buy something in Washington and bring it to Oregon?

You pay Washington's sales tax at the register in Washington. You do not owe Oregon tax when you bring it home. Oregon does not charge use tax on personal purchases brought across the border.

Does Oregon have any taxes on purchases?

Oregon has no sales or use tax on most purchases. However, gasoline, cigarettes, alcohol, and cannabis carry state excise taxes that are included in the price. Oregon also funds services through income tax, which is higher than many other states.

Why doesn't Oregon have sales tax?

Oregon's tax system relies on income tax instead. This is a policy choice made by the state legislature. Five states have no sales tax: Oregon, Montana, New Hampshire, Delaware, and Alaska.