Updated October 8, 2026. Quick answer: No. Oregon is a common law state. At divorce, ORS 107.105 has the court divide property “as may be just and proper in all the circumstances”, and at death the surviving spouse has an elective share that grows with the length of the marriage. The IRS lists nine community property states.
Oregon community property at a glance
| Item | What the documents say |
|---|---|
| Regime | Common law |
| At divorce | The court divides property as is just and proper, with a rebuttable presumption of equal contribution (ORS 107.105) |
| At a spouse’s death | An elective share from 5% to 33% of the augmented estate by length of marriage (ORS 114.600, 114.605) |
| Federal basis at the first death | A qualified joint interest between spouses: one-half is included in the estate and steps up |
| Source | Oregon Legislature; IRS Publications 551 and 555; 26 U.S.C. 1014 |
What the Oregon statutes say
Oregon’s divorce statute sets a presumption about contribution rather than about the split: “there is a rebuttable presumption that both parties have contributed equally” to property acquired during the marriage, with separately held gifts and inheritances excluded.
At divorce in Oregon
The test is just and proper in all the circumstances. The equal-contribution presumption is rebuttable and does not by itself fix an equal division.
At a spouse’s death in Oregon
Under ORS 114.600 and 114.605, a surviving spouse “may elect to receive the elective share provided by ORS” 114.605. The percentage depends on the length of the marriage: “Less than 2 years 5% of the augmented estate” at the low end and “15 years or more 33% of the augmented estate” at the top.
What it does to basis when the first spouse dies
Because Oregon is not on the IRS’s list of community property states, a couple’s basis at the first death depends on title. IRS Publication 551 says to “Include one-half of the value of a qualified joint interest” in the decedent’s gross estate, and the survivor’s basis is the cost of the survivor’s own half plus the basis in the half inherited. Property in the decedent’s name alone is different: 26 U.S.C. 1014(a) gives the heir a basis equal to the property’s fair market value at the date of the decedent’s death.
Computed illustration, not tax advice: suppose an Oregon couple paid $100,000 for shares held as a qualified joint interest, and the shares are worth $400,000 when one spouse dies. The survivor’s basis is the total of two halves: $200,000 for the half that steps up plus $50,000 as the cost of the survivor’s own half, which makes $250,000. A sale at $400,000 would then show a gain of $150,000. In a community property state the same facts would give a basis of the whole $400,000. CMG’s common law step-up page goes through the difference.
What the documents do not say
- The documents read do not state a rule for a couple who moved to Oregon beyond the domicile rule in ORS 114.600.
Common mistakes
- Reading the equal-contribution presumption as an equal-split rule; the court still divides what is just and proper.
- Assuming the answer in this state settles it for a couple who move; the rules depend on the state where the spouses are domiciled and, for property in a trust, on the trust.
Related: why only half steps up in a common law state, Oregon retirement taxes, and Oregon probate cost.
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Answer againSources
- ORS 107.105 Provisions of judgment (Oregon Revised Statutes, chapter 107): https://www.oregonlegislature.gov/bills_laws/ors/ors107.html
- ORS 114.600 Elective share generally; ORS 114.605 Amount of elective share (Oregon Revised Statutes, chapter 114): https://www.oregonlegislature.gov/bills_laws/ors/ors114.html
- IRS Publication 551, Basis of Assets (December 2025): https://www.irs.gov/pub/irs-pdf/p551.pdf
- 26 U.S.C. 1014, Basis of property acquired from a decedent (United States Code, 2024 Edition): https://www.govinfo.gov/link/uscode/26/1014?link-type=html
Sources: the primary documents linked above, read on October 8, 2026. General information, not tax advice. Your own facts decide the outcome, and a tax professional or the state agency itself is the right place to confirm anything consequential.