The Oregon Local Option Tax Calculator helps you quickly determine the various local taxes that apply in Oregon. Unlike most states, Oregon does not have a statewide sales tax, but it does have several local option taxes that apply to specific goods and services.
Oregon Local Option Tax Calculator
Calculate local option taxes for Oregon including lodging, prepared food, and marijuana taxes
Total Amount
Tax Amount
Pre-Tax Amount
Tax Rate
Removing Tax: Pre-Tax = Amount ÷ (1 + Tax Rate)
The Oregon Local Option Tax Calculator helps you quickly determine the various local taxes that apply in Oregon. Unlike most states, Oregon does not have a statewide sales tax, but it does have several local option taxes that apply to specific goods and services.
When adding local option tax:
- Tax Amount = Pre-Tax Amount × Tax Rate
- Total Amount = Pre-Tax Amount + Tax Amount
When removing local option tax:
- Pre-Tax Amount = Total Amount ÷ (1 + Tax Rate)
- Tax Amount = Total Amount – Pre-Tax Amount
Oregon has no statewide sales tax, but local jurisdictions can impose local option taxes on specific items such as lodging, prepared food and beverages, marijuana products, and vehicle rentals. These tax rates vary by location and type of tax.
Adding Lodging Tax Example
Let’s say you want to calculate the lodging tax on a $1,500 hotel stay in Portland with the combined tax rate of 6.8%:
Pre-Tax Amount = $1,500
Tax Rate = 6.8% or 0.068
Calculate the tax amount:
Tax Amount = $1,500 × 0.068 = $102.00
Calculate the total amount:
Total Amount = $1,500 + $102.00 = $1,602.00
Removing Prepared Food Tax Example
Now, let’s say you have a total restaurant bill of $157.50 in Eugene, which includes a 5% prepared food tax, and you want to calculate the pre-tax amount:
Total Amount = $157.50
Tax Rate = 5% or 0.05
Calculate the pre-tax amount:
Pre-Tax Amount = $157.50 ÷ (1 + 0.05) = $157.50 ÷ 1.05 = $150.00
Calculate the tax amount:
Tax Amount = $157.50 – $150.00 = $7.50
Marijuana Tax Example
Using the state marijuana tax rate of 17%, let’s calculate tax on a $100 marijuana product:
Pre-Tax Amount = $100
Tax Rate = 17% or 0.17
Calculate the tax amount:
Tax Amount = $100 × 0.17 = $17.00
Calculate the total amount:
Total Amount = $100 + $17.00 = $117.00
Oregon Local Option Taxes (2025)
Oregon does not have a statewide sales tax, but local jurisdictions can impose local option taxes on specific goods and services. These taxes are the primary way that cities and counties in Oregon generate revenue from sales.
Lodging Tax
Prepared Food Tax
Marijuana Tax
Vehicle Rental Tax
Oregon Lodging Tax Breakdown (2025)
| Tax Component | Rate | Description |
|---|---|---|
| Oregon State Lodging Tax | 1.800% | Statewide lodging tax |
| City Lodging Tax | 0.000-8.000% | City lodging taxes |
| County Lodging Tax | 0.000-4.000% | County lodging taxes |
| Total Lodging Tax | 1.800-13.800% | Combined lodging tax rate |
Major Oregon Areas with Local Option Tax Rates
| Area | Tax Type | Tax Rate |
|---|---|---|
| Portland | Lodging Tax | 6.8% |
| Portland | Prepared Food Tax | 5% |
| Portland | Marijuana Tax | 20% |
| Portland | Vehicle Rental Tax | 3.5% |
| Eugene | Lodging Tax | 6.8% |
| Eugene | Prepared Food Tax | 5% |
| Salem | Lodging Tax | 6.8% |
| Bend | Lodging Tax | 6.8% |
| Ashland | Lodging Tax | 6.8% |
| Ashland | Prepared Food Tax | 5% |
Oregon Local Option Tax Exemptions (2025)
Since Oregon does not have a statewide sales tax, exemptions are specific to each local option tax. Some common exemptions include:
- Lodging Tax Exemptions: Long-term stays (typically 30+ days), government employees on official business, certain non-profit organizations
- Prepared Food Tax Exemptions: Grocery items, unprepared food, meals provided by schools and hospitals, some non-profit events
- Marijuana Tax Exemptions: Medical marijuana (in some jurisdictions), certain low-THC products
- Vehicle Rental Tax Exemptions: Government rentals, certain non-profit organizations, long-term leases
Oregon Tax Exempt Purchases
Since Oregon has no statewide sales tax, most purchases are not subject to sales tax. However, businesses making purchases for resale may need to provide documentation to avoid paying local option taxes in certain situations.
Some common exempt purchases in Oregon include:
- Resale Items: Items purchased for resale to customers
- Manufacturing Equipment: Equipment used directly in manufacturing
- Farm Equipment: Machinery and equipment used in agricultural production
- Religious and Charitable Organizations: Purchases by qualifying organizations
- Government Agencies: Purchases by federal, state, and local governments
Recent Changes to Oregon Local Option Taxes (2025)
As of 2025, there have been several important changes to Oregon’s local option tax system:
- Marijuana Taxation: Expanded local authority to impose additional marijuana taxes beyond the state rate
- Lodging Tax Distribution: Changes in how lodging tax revenues are distributed between state and local governments
- Prepared Food Tax Expansion: More cities adopting prepared food and beverage taxes
- Vehicle Rental Tax Changes: Updated rates and exemptions for vehicle rental taxes
- Remote Work: Clarifications on tax obligations for remote workers and businesses
- Short-Term Rentals: New regulations and tax requirements for short-term rental properties
Understanding Oregon’s Tax System
No Statewide Sales Tax
Oregon is one of the few states in the U.S. with no statewide sales tax. This makes Oregon unique compared to most other states. Instead of a sales tax, Oregon relies on income taxes and local option taxes to generate revenue. The absence of a sales tax is often cited as a reason for Oregon’s higher property and income taxes.
Local Option Taxes
While Oregon has no statewide sales tax, local jurisdictions (cities and counties) can impose local option taxes on specific goods and services. These taxes are the primary way that local governments in Oregon generate revenue from sales. The most common local option taxes are on lodging, prepared food and beverages, marijuana products, and vehicle rentals.
Lodging Taxes
Oregon has a statewide lodging tax of 1.8%, and cities and counties can add additional lodging taxes. These taxes apply to hotels, motels, bed and breakfasts, vacation rentals, and other lodging accommodations. The combined lodging tax rate in Oregon can range from 1.8% to over 13% in some areas.
Prepared Food Taxes
Several cities in Oregon impose taxes on prepared food and beverages. These taxes typically apply to meals served in restaurants, bars, and other food service establishments. The tax does not apply to groceries or unprepared food items. Rates vary by city but are typically around 5%.
Marijuana Taxes
Oregon imposes a state tax of 17% on retail marijuana sales. In addition, cities and counties can impose local marijuana taxes of up to 3%. This makes the combined marijuana tax rate in Oregon range from 17% to 20% depending on the location.
Vehicle Rental Taxes
Some cities in Oregon impose taxes on vehicle rentals. These taxes apply to the rental of cars, trucks, and other vehicles. Rates vary by city but are typically around 3.5%. These taxes are in addition to any other applicable fees and taxes.
Oregon Local Option Taxes for Businesses
Registration Requirements
Businesses subject to local option taxes in Oregon must register with the appropriate taxing authority. For lodging taxes, businesses must register with the Oregon Department of Revenue. For other local option taxes, businesses may need to register with the city or county imposing the tax. Registration typically requires obtaining a business license and tax permit.
Tax Collection
Businesses are responsible for collecting local option taxes from customers and remitting them to the appropriate taxing authority. Tax collection requirements vary by tax type and location. Businesses must keep detailed records of taxable transactions and file regular tax returns, which may be monthly, quarterly, or annually depending on the volume of business.
Exemption Certificates
For some local option taxes, businesses may accept exemption certificates from qualifying customers. For example, lodging tax exemptions may apply to long-term stays or government employees. Businesses must maintain valid exemption certificates and ensure they comply with all requirements for accepting exemptions.
Online Sales
Since Oregon has no statewide sales tax, online retailers generally do not need to collect sales tax on sales to Oregon customers. However, if the online retailer has a physical presence in Oregon or is selling taxable goods or services subject to local option taxes, they may be required to collect those specific taxes.
Penalties and Interest
Oregon imposes penalties for late filing and late payment of local option taxes. The penalty is typically a percentage of the tax due, plus interest. Failure to file or pay can result in additional penalties, legal action, and revocation of business licenses. Penalties vary by tax type and jurisdiction.
Tax Calculation Services
Given the complexity of Oregon’s local option tax system with different rates in various jurisdictions, many businesses use automated tax calculation services to ensure accurate collection and remittance of taxes. These services help businesses stay compliant with changing tax laws and rates across different cities and counties.