Updated September 4, 2026. Quick answer: Oregon taxes estates worth $1,000,000 or more at graduated rates from 10.0% up to 16.0%, and unlike the federal system the return is due 12 months after the date of death, not nine. A $2,000,000 Oregon taxable estate owes $101,250 in state estate tax.
2026 exemption: $1,000,000 filing threshold (not indexed for inflation) · Top rate: 16.0% on the portion of the Oregon taxable estate over $9,500,000 · Key statute: ORS 118.010 (imposition, rate table, nonresident apportionment); ORS 118.160 (filing requirement); ORS 118.140 (natural resource property credit)
Filing deadline is 12 months, not the federal nine, and the extension is only six
For deaths on or after January 1, 2022 the return and payment are due 12 months after the decedent’s date of death, one of the least common deadlines nationally. An executor can get a six-month extension using Form OR-706 EXT, but that only extends the filing deadline, not the payment due date. The $1,000,000 filing threshold itself is unchanged: a return is required if the total value of all estate assets was $1 million or more and the estate contained property taxable by Oregon.
Not a simple 10% to 16% cliff, it is a ten-bracket marginal table
ORS 118.010(4) runs ten distinct brackets with increasing marginal rates. Selected brackets: $1,000,000 to $1,500,000 at 10.0%, base $0; $1,500,000 to $2,500,000 at 10.25%, base $50,000; $2,500,000 to $3,500,000 at 10.5%, base $152,500; $6,500,000 to $7,500,000 at 13.0%, base $602,500; $9,500,000 and above at 16.0%, base $1,022,500. Each bracket’s base tax equals the prior bracket’s cumulative tax, so it is a true marginal schedule with no cliff.
Non-resident decedents: real property trigger, with an apportionment ratio
Oregon imposes estate tax on a nonresident decedent’s estate that includes real property or tangible personal property located in Oregon. The full graduated table applies to the entire estate, then the tax is multiplied by a ratio whose numerator is the value of the decedent’s real and tangible personal property located in Oregon and whose denominator is the total value of the gross estate.
Oregon begins at $1,000,000, which reaches ordinary estates.
A $2,000,000 Oregon taxable estate owes $101,250, and the return is due 12 months after death rather than the federal nine. A threshold that low is reached by a paid-off house and a retirement account in a way that higher-threshold states are not, so structure matters more here.
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Portability confirmed none, plus the 2025 to 2026 legislative record
Oregon has no spousal portability, though an estate may independently elect QTIP or Oregon Special Marital Property treatment for state purposes even when it differs from the federal election. On the legislative front, SB 1511, which would have converted the $1,000,000 exclusion into a $2,500,000 deduction with a phased-in rate structure for deaths on or after January 1, 2027, passed the Senate 22 to 5 on February 24, 2026 but died in the House Committee on Revenue when the Legislature adjourned March 6, 2026. A separate full-repeal ballot initiative received a certified ballot title on September 30, 2025 for the November 3, 2026 general election.
The math on a $2,000,000 estate
Tax owed: $101,250. The estate falls in the $1,500,000 to $2,500,000 bracket, base tax $50,000, marginal rate 10.25%. Amount over the bracket floor: $2,000,000 minus $1,500,000 equals $500,000. Marginal tax: $500,000 times 10.25% equals $51,250. Total tax: $50,000 plus $51,250 equals $101,250.
Honest gaps
Could not verify from a primary Oregon Secretary of State source whether the repeal initiative actually collected the full signatures required to formally qualify for the November 2026 ballot; that is unverified as to final ballot status. The Form OR-706 instructions PDF itself was not machine-readable this session, so the 12-month deadline is sourced only to the Department of Revenue overview page.
Source note. Read from https://www.oregon.gov/dor/programs/businesses/pages/estate.aspx; https://oregon.public.law/statutes/ors_118.010; https://oregon.public.law/rules/oar_150-118-0080 on 2026-09-04.
Related: estate tax by state · who actually pays the estate tax · the lifetime gift and estate tax exemption.
Statutory text read at each state's own department of revenue or legislature. General information, not legal or tax advice; exemptions, rates and filing rules change, and a qualified estate or tax professional should confirm the current figures before you rely on them.