Both statewide and locally, the Oregon sales tax rate is 0%. It’s one of five US states where there is no sales tax. If you’re selling to Oregon customers, you don’t collect sales tax, register for a permit, or file returns.

Below, we’ll cover how Oregon’s zero rate affects businesses operating in-state and across state lines, what the city and county rate tables look like, and where Oregon businesses can still run into unexpected tax obligations.

Highlights

• Oregon is one of five states with no statewide sales tax, which means businesses don’t collect, remit, or file sales tax returns on Oregon sales.

• Oregon businesses that sell into other states can still trigger sales tax obligations through economic nexus, regardless of their home state’s tax structure.

• Oregon does have other business taxes worth knowing, including a corporate tax for businesses that exceed the threshold for Oregon-sourced commercial activity.

What is the Oregon sales tax rate?

Oregon is one of five states with no statewide sales tax, alongside Alaska, Delaware, Montana, and New Hampshire. If you sell goods or services to customers in Oregon, you generally don’t charge sales tax at the point of sale. There’s no rate to apply, no returns to file, and no state sales tax registration requirement.

What are the local sales tax rates in Oregon?

In Oregon, the rate is 0% no matter where you are. In other states, the headline rate is just the floor, and the actual rate depends on which city and county a customer is in. But Oregon has the same rate across every city and county.

Are there any exceptions?

Oregon doesn’t have a general tax, but it does impose a few narrow, transaction-specific taxes that can affect certain businesses:

• Marijuana tax: 17% tax on recreational cannabis sales at retail, collected by the seller.

• Lodging taxes: 1.5% statewide transient lodging tax applies to short-term rentals and hotels. Many local jurisdictions add their own lodging taxes on top.

• Statewide transit tax: 0.001% transit tax is withheld from the wages of Oregon residents as well as nonresidents who perform services in Oregon. While not a sales tax, this affects businesses with Oregon employees.

These taxes don’t require a standard sales tax collection process, but if your business operates in one of these categories, the specific rules for that tax apply.

How does Oregon’s sales tax rate affect businesses?

If your business operates only in Oregon and sells exclusively to Oregon customers, compliance is simple. There’s no collection, remittance, or filing. It becomes more nuanced once you’re selling across state lines.

Here’s how it works:

Selling into other states from Oregon

If you sell from Oregon to customers in other states, your obligations depend on those states’ rules. Many states have economic nexus thresholds (e.g., $100,000 in annual sales, 200 separate transactions) that require out-of-state sellers to register and collect once those thresholds are met. Oregon businesses aren’t exempt from those requirements just because their home state has no sales tax.

Selling into Oregon from another state

Businesses from other states generally have no sales tax obligation on Oregon sales, regardless of where they’re based or how much they sell there. There’s no economic nexus threshold that triggers a collection requirement because there’s no tax to collect.

Cross-border shopping

Oregon’s zero rate can influence consumer behavior near state lines. Washington state’s combined sales tax, for example, regularly exceeds 10%, so residents often cross into Oregon to make large purchases tax-free. Businesses near the Oregon-Washington border, particularly in the Portland metro area, frequently receive Oregonian customers.

If your business is managing multistate compliance, Oregon is typically the easy part. It’s selling into other states that can get tricky. For those transactions, you can use Stripe’s sales tax calculator to confirm tax rates and tools such as Stripe Tax to automatically monitor nexus thresholds across states.

What are Oregon’s sales tax rates by city?

Every city in Oregon has a combined sales tax rate of 0%. The table below includes Oregon’s largest cities.

What are Oregon’s sales tax rates by county?

Oregon’s 36 counties have no general sales tax authority. There are no local rate variations anywhere in the state.

Is your business required to collect sales tax in Oregon?

No. But “required to collect sales tax in Oregon” and “required to collect sales tax at all” are different questions, and confusing them is where businesses could run into trouble. If you’re selling to customers in other states, you’ll need to observe those states’ economic nexus rules and register for sales tax if you hit the threshold for economic activity.

Businesses with more than $1 million in Oregon-sourced commercial activity will also need to pay Oregon’s Corporate Activity Tax (CAT), introduced in 2020. CAT is a business privilege tax calculated on receipts minus certain deductions. The rate is 0.57% on Oregon commercial activity above the threshold, plus a flat $250 minimum.

How Stripe Tax can help

Stripe Tax reduces the complexity of tax compliance so you can focus on growing your business. Stripe Tax helps you monitor your obligations and alerts you when you exceed a sales tax registration threshold based on your Stripe transactions. In addition, it automatically calculates and collects sales tax, VAT, and GST on both physical and digital goods and services—in all US states and in more than 100 countries.

Start collecting taxes globally by adding a single line of code to your existing integration, clicking a button in the Dashboard, or using our powerful API.

Stripe Tax can help you:

• Understand where to register and collect taxes: See where you need to collect taxes based on your Stripe transactions. After you register, switch on tax collection in a new state or country in seconds. You can start collecting taxes by adding one line of code to your existing Stripe integration or add tax collection with the click of a button in the Stripe Dashboard.

• Register to pay tax: Let Stripe manage your global tax registrations and benefit from a simplified process that prefills application details—saving you time and simplifying compliance with local regulations.

• Automatically collect tax: Stripe Tax calculates and collects the right amount of tax owed, no matter what or where you sell. It supports hundreds of products and services and is up-to-date on tax rules and rate changes.

• Simplify filing: Stripe Tax seamlessly integrates with filing partners, so your global filings are accurate and timely. Let our partners manage your filings so you can focus on growing your business.

Learn more about Stripe Tax, or get started today.