Updated October 7, 2026. Quick answer: Oregon’s estate tax starts at $1,000,000 for deaths in 2026, and the statute names that figure with no end date or indexing, so it also applies to 2027 unless the Legislature or the voters change it. The federal exclusion is $15,000,000 for 2026.
Oregon estate tax exemption: 2026 and 2027 at a glance
| Item | What the documents say |
|---|---|
| Exemption, 2026 deaths | $1,000,000 |
| How it is set | Fixed in the statute; the rate table starts at $1,000,000 |
| 2027 figure | $1,000,000, because the statute has no end date or indexing |
| Rates | 10.0% rising to 16.0% |
| Return and deadline | Due 12 months after death (ORS 118.100) |
| Federal basic exclusion amount, 2026 | $15,000,000 |
| Sources | Oregon Legislature; Oregon Secretary of State; IRS Revenue Procedure 2025-32 |
What changes in 2027
Chapter 118 of the Oregon Revised Statutes (2025 Edition) requires an estate tax return only if the gross estate is $1 million or more, and its rate table begins at $1,000,000. The text read carries no inflation or annual adjustment language and no end date.
How the Oregon estate tax works
Oregon does not subtract a separate exclusion first: the table starts at $1,000,000 with a $0 base, and the tax is a base amount plus a percentage of the excess over the lower bound of each band, up to a top band of 16.0% over $9,500,000. The statute requires the return to be filed and the tax paid no later than 12 months after the date of death.
Computed example: an Oregon taxable estate of $2,000,000 falls in the band from $1,500,000, where the tax is $50,000 plus 10.25% of the excess over $1,500,000, $101,250. This is an illustration, not a figure from the Department of Revenue.
In the documents’ own words
- Oregon Revised Statutes Chapter 118 Estate Tax (2025 Edition) (Oregon Legislature): “unless the value of the gross estate is $1 million or more”
- Oregon Revised Statutes Chapter 118 Estate Tax (2025 Edition) (Oregon Legislature): “no later than 12 months following the date of death”
Oregon estate tax rates as the state prints them
Copied from the state’s own document: ORS 118.010: Oregon taxable estate at least the first amount and less than the second.
| Over | Up to | Tax |
|---|---|---|
| $1,000,000 | $1,500,000 | $0 plus 10.0% of excess over $1,000,000 |
| $1,500,000 | $2,500,000 | $50,000 plus 10.25% of excess over $1,500,000 |
| $2,500,000 | $3,500,000 | $152,500 plus 10.5% of excess over $2,500,000 |
| $3,500,000 | $4,500,000 | $257,500 plus 11.0% of excess over $3,500,000 |
| $4,500,000 | $5,500,000 | $367,500 plus 11.5% of excess over $4,500,000 |
| $5,500,000 | $6,500,000 | $482,500 plus 12.0% of excess over $5,500,000 |
| $6,500,000 | $7,500,000 | $602,500 plus 13.0% of excess over $6,500,000 |
| $7,500,000 | $8,500,000 | $732,500 plus 14.0% of excess over $7,500,000 |
| $8,500,000 | $9,500,000 | $872,500 plus 15.0% of excess over $8,500,000 |
| $9,500,000 | and over | $1,022,500 plus 16.0% of excess over $9,500,000 |
How this compares with the federal exemption
Federal estate tax is separate. Revenue Procedure 2025-32 says the One Big Beautiful Bill Act, section 70106, increased the “basic exclusion amount to $15,000,000 for calendar year 2026”. CMG’s page on the federal exemption for 2027 is the federal estate tax exemption for 2027. The state figure on this page is not the federal one: it is the amount at which Oregon starts to tax an estate.
What the documents do not say
- Oregon Department of Revenue pages were unavailable when this page was built, so the return form and portability are not stated here.
- The text read is the 2025 Edition of the statute; whether the 2026 session changed it was not verified.
- Initiative Petition 2026-051, proposed for the November 3, 2026 General Election, would nullify the estate tax, according to the Secretary of State’s draft ballot title notice. This page did not verify whether it qualified for the ballot; if it passed, it would change Oregon’s 2027 position.
Common mistakes
- Using the federal $15,000,000 base for an Oregon estate.
- Forgetting that Oregon’s return and payment are due 12 months after the date of death.
Related: Oregon estate tax (2026), estate tax by state, the federal estate tax exemption for 2027, Oregon probate cost, and Oregon retirement taxes.
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Answer againSources
- Oregon Revised Statutes Chapter 118 Estate Tax (2025 Edition): https://www.oregonlegislature.gov/bills_laws/ors/ors118.html
- Initiative Petition 2026-051 draft ballot title notice: https://sos.oregon.gov/admin/Documents/irr/2026/051dbt.pdf
- Revenue Procedure 2025-32 (Internal Revenue Service): https://www.irs.gov/pub/irs-drop/rp-25-32.pdf
Sources: the primary documents linked above, read on October 7, 2026. General information, not tax advice. Your own facts decide the outcome, and an estate attorney, a tax preparer or the state agency itself is the right place to confirm anything consequential.