Updated October 7, 2026. Quick answer: No. Oregon has no inheritance tax for a death in 2026. The Legislative Revenue Office says “Beginning January 1, 1987, the statutory inheritance tax rate became zero”, and that in 2012 HB 2541 “changed the Oregon inheritance tax into the current Oregon estate tax”.
Oregon inheritance tax at a glance
| Item | What the documents say |
|---|---|
| State inheritance tax | None |
| What the documents say | The Legislative Revenue Office says Oregon’s statutory inheritance tax rate became zero on January 1, 1987 and that HB 2541 (2012) changed the inheritance tax into the current estate tax |
| State estate tax | Yes: an Oregon estate tax; estates valued at $1 million or more must file, per the Legislative Revenue Office and the Department of Revenue |
| Source | Oregon Legislative Revenue Office; Oregon Department of Revenue; IRS Revenue Procedure 2025-32 |
What the Oregon documents say
The Oregon Legislative Revenue Office’s research report on the Oregon estate tax says “Beginning January 1, 1987, the statutory inheritance tax rate became zero”. It adds that in 2012, HB 2541 “changed the Oregon inheritance tax into the current Oregon estate tax”.
Oregon’s current death tax is the estate tax, paid by the estate and not by an heir. The Revenue Office says “estates valued less than $1 million are not subject to the tax”, and the Department of Revenue’s Form OR-706 instructions say “A return must be filed if the value of the gross estate” at the date of death is $1,000,000 or more.
What an heir in Oregon still faces
The federal estate tax is paid by the estate, with a 2026 basic exclusion amount of “$15,000,000 for calendar year 2026”. Oregon does levy an estate tax, paid by the estate and not by an heir: the Revenue Office says “estates valued less than $1 million are not subject to the tax”. CMG’s Oregon estate tax page covers it.
An heir’s basis under 26 U.S.C. 1014(a) is generally the value at “the date of the decedent’s death”. Inherited retirement money is an income tax question: see Oregon 401(k) and IRA withdrawals and the inherited IRA RMD calculator.
How current the Oregon documents are
Read on October 7, 2026: LRO 2/8/2023 F1 Research Report #2-23 Oregon Estate Tax (Oregon Legislative Revenue Office, dated 2023); LRO 1/21/2025 F1 Report #1-25 Section F: Estate Tax (Oregon Legislative Revenue Office, dated 2025); 2024 Form OR-706 Instructions (Oregon Department of Revenue, dated 2024).
What the documents do not say
- No Oregon document read says in one sentence that Oregon has no inheritance tax today. The Revenue Office says the inheritance tax rate went to zero in 1987 and that HB 2541 changed the inheritance tax into the estate tax. The Form OR-706 instructions say Form OR-706 is filed for deaths on or after January 1, 2012, and Oregon Form IT-1, the Oregon Inheritance Tax Return, for deaths before January 1, 2012.
Common mistakes
- Taking no inheritance tax to mean no Oregon death tax; Oregon has an estate tax for estates of $1 million or more, and the estate, not the heir, files for it.
Related: inheritance tax by state, Oregon estate tax, Oregon probate cost, and how Oregon taxes 401(k) and IRA withdrawals.
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Answer againSources
- LRO 2/8/2023 F1 Research Report #2-23 Oregon Estate Tax: https://apps.oregonlegislature.gov/liz/2023R1/Downloads/CommitteeMeetingDocument/260700
- LRO 1/21/2025 F1 Report #1-25 Section F: Estate Tax: https://olis.oregonlegislature.gov/liz/2025R1/Downloads/CommitteeMeetingDocument/289930
- 2024 Form OR-706 Instructions: https://www.oregon.gov/dor/forms/FormsPubs/form-or-706-inst_104-001-1_2024.pdf
- Revenue Procedure 2025-32 (Internal Revenue Service): https://www.irs.gov/pub/irs-drop/rp-25-32.pdf
- 26 U.S.C. 1014 Basis of property acquired from a decedent (U.S. Code, 2023 edition, GovInfo): https://www.govinfo.gov/content/pkg/USCODE-2023-title26/html/USCODE-2023-title26-subtitleA-chap1-subchapO-partII-sec1014.htm
General information, not tax advice; the state agency or a tax professional can confirm anything consequential. Documents read October 7, 2026.