Portland, OR Taxes 2025
Complete local tax guide and OBBBA calculator
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Portland Tax Overview 2025
No sales tax but high income tax. Local arts tax applies.
Local Income Tax
1%
City/county rate
Sales Tax
0.00%
State + local
Property Tax
1.06%
Effective rate
Median Home
$525,000
Home value
State Tax Information
Portland is located in Oregon (4.75% - 9.9% state income tax)
💼 Portland Local Income Tax
Portland imposes a local income tax of 1% on residents. This is in addition to any state income tax you may owe to Oregon.
Local income taxes are common in Ohio, Pennsylvania, and a few other states. They're typically withheld from your paycheck if you work in Portland, regardless of where you live.
Total Income Tax Burden in Portland
🛒 Portland Sales Tax 2025
The combined sales tax rate in Portland is 0.00%. This includes both the Oregon sales tax and any local sales taxes.
Sales tax applies to most retail purchases in Portland. Some items like groceries, prescription medications, and clothing may be exempt or taxed at reduced rates depending on Oregon law.
Sales Tax Breakdown
Sales Tax Examples
| Purchase Amount | Sales Tax | Total |
|---|---|---|
| $50 | $0.00 | $50.00 |
| $100 | $0.00 | $100.00 |
| $500 | $0.00 | $500.00 |
| $1,000 | $0.00 | $1,000.00 |
🏠 Portland Property Tax 2025
The average effective property tax rate in Portland is 1.06%. Based on the median home value of $525,000, the typical homeowner pays approximately $5,565 per year in property taxes.
Property taxes fund local services including schools, police, fire departments, roads, and parks. Rates vary by specific location within Portland based on school district and other taxing authorities.
Estimated Annual Property Tax in Portland
| Home Value | Annual Tax | Monthly | SALT Deductible? |
|---|---|---|---|
| $200,000 | $2,120 | $177 | ✓ Yes |
| $300,000 | $3,180 | $265 | ✓ Yes |
| $400,000 | $4,240 | $353 | ✓ Yes |
| $500,000 | $5,300 | $442 | ✓ Yes |
| $750,000 | $7,950 | $663 | ✓ Yes |
| $1,000,000 | $10,600 | $883 | ✓ Yes |
💡 SALT Tip: Under the OBBBA, you can deduct up to $40,000 in state and local taxes (SALT) on your federal return. This includes property taxes, state income taxes, and local income taxes.
💰 Portland Cost of Living
Housing Costs
Tax Summary
OBBBA Tax Benefits for Portland Residents
High income tax makes OBBBA federal deductions particularly valuable.
The One Big Beautiful Bill Act (OBBBA), signed into law on July 4, 2025, introduced several federal tax deductions that can significantly reduce your tax burden as a Portland resident.
Available OBBBA Deductions:
Calculate Your Portland Tax Savings
Use our free OBBBA calculator to see exactly how much you could save on your 2025 federal taxes as a Portland resident.
Calculate My SavingsFrequently Asked Questions
What is the sales tax in Portland?
The combined sales tax rate in Portland is 0.00%. This includes both state and local sales taxes.
Does Portland have a local income tax?
Portland has a local income tax of 1%. This is in addition to any state and federal income taxes.
What is the property tax rate in Portland?
The average effective property tax rate in Portland is 1.06%. On a home worth $525,000, you'd pay approximately $5,565 per year.
How do OBBBA deductions benefit Portland residents?
High income tax makes OBBBA federal deductions particularly valuable. You can use our free calculator to estimate your total savings from tips, overtime, auto loan interest, SALT, and senior bonus deductions.