Does Oregon have an inheritance tax?

Question

How does Oregon inheritance tax work? I’m looking for information on whether inherited money or property is subject to state taxes and which factors determine the tax treatment.

Marco · Answer

No Oregon doesn't have an inheritance tax, so heirs themselves never owe tax on what they receive. Oregon does not have an inheritance tax, but it does have an estate tax. That estate tax is paid by the estate before distribution, not by beneficiaries. Oregon's estate tax exemption remains at $1 million in 2026, one of the lowest thresholds nationally, with rates running 10–16% depending on estate size. So the deciding factor isn't who inherits, it's the total value of the deceased's estate if it's under $1M, no state tax applies at all.

Adam · Answer

That is, there is no inheritance tax in Oregon, and heirs do not pay any taxes on their inherited money. There is no inheritance tax in Oregon, but there is an estate tax. This tax is paid prior to distribution by the estate, not by beneficiaries. The estate tax exemption limit of Oregon remains $1 million in 2026, which is one of the lowest exemption limits in the whole country with estate tax rates between 10 and 16%. Thus, the main point is the value of the estate and not the people inheriting.

Marco · Answer

Oregon's estate tax applies to the deceased's estate before assets are distributed, not to what heirs receive. Estates over $1 million (a low threshold vs. federal) owe tax, with rates from 10% to 16% on the amount above that. There's no exemption for spouses receiving via will (unlike many states), though property passing outright to a surviving spouse can qualify for a marital deduction. Federal estate tax may also apply above ~$13.99M (2025). Inherited property gets a stepped-up basis, so you generally won't owe capital gains just for inheriting.

Jim · Answer

In other words, there is no inheritance tax in Oregon, and hence the individuals receiving the inheritance pay no taxes for their received amount. There is no inheritance tax in Oregon; however, there is an estate tax in Oregon. The estate tax is paid before the distribution of the estate and not by the beneficiaries. The estate tax exemption limit of Oregon in 2026 will be $1 million, which is the lowest among all states having estate taxes of 10 to 16%. Therefore, the key point is the value of the estate and not the heirs.

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