Oregon taxes capital gains at 9.9%. Combined with federal taxes, your effective rate on a home sale could reach 28.7%.
OR State Rate
9.9%
Top marginal rate
Federal Rate
15%
Most common long-term bracket
Combined Effective
28.7%
On $150K taxable gain (example)
After the $250K/$500K exclusion, here's what a typical seller might owe.
If Oregon is where your primary residence is located and you've lived there at least 2 of the last 5 years, you can exclude up to $250K (single) or $500K (married filing jointly) of your capital gain from both federal and state taxes.
Investment and rental properties in Oregon don't qualify for the exclusion. You'll owe 9.9% state tax plus federal tax on the full gain, plus 25% depreciation recapture on any depreciation claimed.
In Oregon, homes sold in January sell for 11% more than those sold in August (-7%). Timing your sale right can offset a significant portion of your tax bill.
Capital gains tax rates on home sales in Oregon and nearby states.
| State | Rate | Tax on $150K Gain | Notes |
|---|---|---|---|
Nevada0% | 0% | $0 | No state income tax |
| 5.695% | $8,543 | Flat tax rate | |
| 7% | $10,500 | 7% on gains > $250K (since 2022) | |
OregonYou | 9.9% | $14,850 | Top marginal rate |
| 13.3% | $19,950 | Highest in nation; taxed as ordinary income |
Selling in Nevada instead of Oregon would save $14,850 in state tax on a $150K gain.
Oregon taxes capital gains at rates up to 9.9%, one of the highest in the West. The state has no sales tax, but the income tax burden is substantial.
Portland and its suburbs drive the majority of market activity. Bend and Eugene are also significant markets.
Oregon does not offer a preferential capital gains rate. Combined with federal taxes, sellers can face a combined rate exceeding 33%.
The state's proximity to Washington (7% on gains > $250K) and California (13.3%) positions Oregon in the middle of a high-tax West Coast corridor.
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