Oregon Prohibited the Transfer Tax
Program and regulatory figures verified September 25, 2026. Details change; confirm your scenario with us.
Three of the states in this build round tax a move-up on the way through. Oregon wrote a statute saying its local governments may not.
The prohibition
ORS 306.815(1): a city, county, district or other political subdivision or municipal corporation of this state shall not impose, by ordinance or other law, a tax or fee upon the transfer of a fee estate in real property, or measured by the consideration paid or received upon transfer of a fee estate in real property.
Two things worth noticing in that sentence. It binds local governments rather than describing a state rate, and it reaches both a charge on the act of transferring and a charge measured by the price. A percentage-of-consideration tax is caught as squarely as a flat one.
What the ban does not reach
Subsection (2) draws the line: a tax or fee upon transfer does not include any fee or charge that becomes due or payable at the time of transfer, unless that fee or charge is imposed upon the right, privilege or act of transferring title to real property.
So ordinary charges that happen to fall due at closing are unaffected. What is prohibited is a charge whose trigger is the transfer itself.
Two further exclusions appear in the statute. Subsection (3) exempts fees established under ORS 203.148, the Public Land Corner Preservation Fund. Subsection (5) disapplies the prohibition where the fee imposed under ORS 205.323 for recording the instrument conveying the property is less than $107.
The grandfather clause is a date
Subsection (4): subsection (1) of this section does not apply to any tax if the ordinance or other law imposing the tax is in effect and operative on March 31, 1997.
That is worth reading carefully. The statute preserves taxes by reference to a date, not by naming jurisdictions. We are not going to tell you which Oregon counties have a surviving pre-1997 charge, because the statute does not say and we have not verified a list. Your closing agent will know what applies where your property sits, and that is a two-minute question.
What it means for a move-up
It removes a category of cost from the net-proceeds calculation that other states make you model carefully.
| State | What the move-up is taxed on |
|---|---|
| Maryland | The increase in mortgage principal when a lien is recorded |
| New Jersey | The sale, at 1% to 3.5% above $1,000,000, paid by the seller |
| Minnesota | Both: the debt secured on each mortgage, and the deed on sale |
| Oregon | Local transfer taxes prohibited by ORS 306.815(1) |
That does not make an Oregon move-up free. Ordinary costs of sale, the mortgage payoff and recording fees all still apply, and Oregon's real difficulty is elsewhere: five of its metros were losing value as of August 2026, which pushes on reserves rather than on transfer costs. See the move-up market page and the structures page.
And the second Oregon advantage
Buying does not reset your assessed value. That is on the assessed value page.
Frequently asked questions
Does Oregon charge a real estate transfer tax?
ORS 306.815(1) prohibits Oregon cities, counties, districts and other political subdivisions from imposing a tax or fee upon the transfer of a fee estate in real property, or measured by the consideration paid or received upon transfer.
Does the ban cover percentage-based transfer taxes?
Yes. The statute reaches a tax or fee 'measured by the consideration paid or received upon transfer of a fee estate in real property' as well as one imposed on the act of transferring.
What is the March 31, 1997 exception?
ORS 306.815(4) provides that the prohibition does not apply to any tax if the ordinance or other law imposing it was in effect and operative on March 31, 1997. The statute preserves such taxes by date rather than naming jurisdictions, so confirm with your closing agent what applies in your county.
Are closing fees that fall due at transfer prohibited too?
No. ORS 306.815(2) provides that a tax or fee upon transfer does not include a fee or charge that becomes due or payable at the time of transfer, unless that fee or charge is imposed upon the right, privilege or act of transferring title.
Mike Certo · NMLS #260555 · Cornerstone First Mortgage NMLS #173855 · Equal Housing Lender. Educational content about financing, not a loan commitment and not legal, tax, or real estate advice. Oregon property tax is administered county by county under the Department of Revenue, and whether any local charge applies to your transfer depends on where the property sits; your closing agent, your CPA or an Oregon attorney, and your real estate agent each handle their own part. Loans are subject to borrower and property qualification.