Oregon's estate tax starts at $1,000,000, far below the federal basic exclusion of $15,000,000 for 2026. The estate, not the heirs, pays it, and the rates climb from 10% to 16%.
This guide gives the 2026 rate table, how the tax is calculated for residents, nonresidents and estates with out-of-state property, the due dates and the marital deduction, with worked examples. It follows the Oregon Department of Revenue's 2026 Form OR-706 instructions.
The Oregon Department of Revenue says Form OR-706 figures the estate tax imposed by ORS Chapter 118. It is a transfer tax levied on the entire taxable estate and paid by the estate; it is not imposed on the heirs or beneficiaries. The department asks you to attach the federal Form 706 schedules, plus Oregon-only schedules where they apply (for example OR-OSMP, OR-NRE and OR-NRC). On the return, the taxable estate is the total gross estate minus the allowable deductions and any natural resource property exemption. A return must be filed if the gross estate at the date of death is $1,000,000 or more.
The tax table starts at a taxable estate of $1,000,000, so in practice an estate pays tax only on the part above that amount, bracket by bracket, with no cliff at the threshold.
| Taxable estate at least | But less than | Tax at the start of the bracket | Rate on the amount over the first column |
|---|---|---|---|
| $1,000,000 | $1,500,000 | $0 | 10% |
| $1,500,000 | $2,500,000 | $50,000 | 10.25% |
| $2,500,000 | $3,500,000 | $152,500 | 10.5% |
| $3,500,000 | $4,500,000 | $257,500 | 11% |
| $4,500,000 | $5,500,000 | $367,500 | 11.5% |
| $5,500,000 | $6,500,000 | $482,500 | 12% |
| $6,500,000 | $7,500,000 | $602,500 | 13% |
| $7,500,000 | $8,500,000 | $732,500 | 14% |
| $8,500,000 | $9,500,000 | $872,500 | 15% |
| $9,500,000 | and over | $1,022,500 | 16% |
You apply the table to the taxable estate on part 2, line 4 of the return. The department's own example: a taxable estate of $1,700,000 is in the $1,500,000 bracket, so the tax is $50,000 plus 10.25% of $200,000, or $70,500.
| Taxable estate | Oregon estate tax |
|---|---|
| $1,000,000 | $0.00 |
| $1,430,000 | $43,000.00 |
| $1,700,000 | $70,500.00 |
| $3,000,000 | $205,000.00 |
| $5,000,000 | $425,000.00 |
| $10,000,000 | $1,102,500.00 |
The $1,430,000 and $1,700,000 rows match the department's examples. The others are our calculations from the 2026 table. For property outside Oregon the tax is prorated: the department's example has a gross estate of $1,450,000, deductions of $20,000 and tax of $43,000; with $800,000 of the gross value located in Oregon, the Oregon share is 0.551724 and the prorated tax is $23,724. For deaths on or after July 1, 2025, an estate that claims the natural resource exemption calculates the Oregon percentage differently, so check the instructions for that case.
Oregon estate tax is calculated on the taxable estate consisting of all of the decedent's property wherever located, and the result is prorated when some property is outside Oregon. For a resident decedent, property taxable by Oregon includes all Oregon real property, Oregon tangible personal property and intangible personal property (not including intangible property taxed by another state or country as a result of the death). For a nonresident decedent it includes only real property and tangible personal property located in Oregon.
The return and the tax payment are due within twelve months of the date of death. You can ask for an extension of time to pay, but the request must reach the department by the return's due date or it is denied. Oregon allows marital elections, including the federal Section 2056 deduction for bequests to a surviving spouse, and an estate may elect an Oregon special marital property (OSMP) deduction. Property claimed for the QTIP or OSMP deduction on the first spouse's Oregon return must be included on the Oregon return of the second spouse to die. A natural resource or commercial fishing business credit is available under ORS 118.140 for qualifying farm and forest property and commercial fishing business property; an estate cannot claim both the natural resource property exemption and the natural resource credit on the same return.
No. A 2026 bill, SB 1511, would have changed the tax for decedents dying on or after January 1, 2027. It passed the Oregon Senate, but the Oregon Legislature's own end-of-session bulletin (17 March 2026) lists it under "Successfully Defeated" and says an amendment stopped it from advancing in the House. The Department of Revenue's 2026 instructions (Rev. 07-23-26) still show the table above and note no 2027 change. We could not open the legislature's bill-history page (olis.oregonlegislature.gov) to read the bill's final entry ourselves. As of 26 October 2026 we found no 2027 Form OR-706 instructions, so confirm the table on the department's site when the 2027 instructions appear. For the federal estate tax, see our federal estate tax exemption guide, and for other states see our state estate tax guide.
Oregon Department of Revenue: 2026 Form OR-706 Instructions, Oregon Department of Revenue: 2026 Form OR-706, Oregon Legislature: 2026 short session recap bulletin, IRS: What's new, estate and gift tax.
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