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Capital Gains Tax in Oregon
By Priya Raman
No sales tax doesn't mean no bite here; Oregon's rate runs high.
No sales tax doesn't mean no bite here; Oregon's rate runs high.
Oregon skips a sales tax, and sellers sometimes assume that softens the tax hit on a property sale. It doesn't. A 9.90% top state rate on capital gains, stacked with federal and the NIIT surcharge, puts the combined ceiling at 33.7%, among the highest in the country.
The 33.7% figure isn't one tax, it's three layered together. Here's how it splits on a long-term gain from an investment property sale:
Oregon adds no extra hoops to the federal like-kind exchange process, so a 1031 exchange here defers all three layers of that 33.7% at once: federal, NIIT, and state. Put the entire sale amount into qualifying replacement property and the bill doesn't come due. Work through the swap in the 1031 exchange calculator and pull your identification and closing deadlines from the timeline calculator.