A plain-language guide · The Broker Duo Team · eXp Realty

Oregon Property Tax Guide.

How Oregon's property tax system works, in plain language: assessed value, due dates and discounts, appeals, and the programs that can lower your bill.

Written for homeowners and future buyers in Linn, Benton, and Marion counties, from Albany and Lebanon to Corvallis, Philomath, and Salem.

Oregon taxes property differently than almost any other state. Instead of taxing a home on what it sells for, the system taxes on an assessed value that can only grow about 3 percent a year, no matter how fast the market moves. That single quirk shapes everything in this guide, so we walk through the whole system the way we would explain it to a friend: how the bill is built, when and how to pay it, how to appeal, and which programs can lower it. This guide is for current owners and future buyers across the Mid-Willamette Valley, where Linn, Benton, and Marion counties meet.

Whether you just opened your October statement or you are deciding whether to make an offer, the goal here is simple: leave you more confident about the numbers on the page. And when a specific question about your property comes up, your county assessor is the person to ask. It costs nothing to call.

The two measures behind every bill

How Oregon property taxes work.

Two statewide votes in the 1990s built today's system, and both are written into the Oregon Constitution. Once you see them, reading a tax bill becomes much easier.

Measure 5, 1990

$5 & $10

Voters capped property taxes. School taxes are limited to $5 per $1,000 of a home's real market value, and general government, which means the county, city, and special districts together, is limited to $10 per $1,000. When all the rates together push past those caps, the bill is compressed down to the limit, which is why even the most heavily taxed properties stay within bounds.

Measure 50, 1997

3% cap

Seven years later, voters rewrote the formula. Measure 50 rolled every property's assessed value back to a 1995-96 baseline minus 10 percent, then capped annual growth at 3 percent, no matter what the market does. Your assessed value grows a little each year by a small, predictable amount, while market value can swing wildly beside it.

Your bill uses the lower number

The bill is calculated on the lower of assessed value or maximum assessed value, not the sale price and not real market value. A home can sell for far more than it is assessed at, and the bill still comes from the assessed number.

No statewide property tax

Oregon has no single statewide property tax rate. Rates come from your county, city, school district, and special districts, each levying its own share. Move one town over and the mix of districts changes, so the rate changes with it.

Taxes follow the property

Property taxes attach to the land, not the owner. A sale does not reset assessed value to the new price; the new owner inherits the same assessed value and the same steady 3 percent path. The exceptions are new construction and major additions, which do get reassessed.

Both measures are explained in plain terms in the League of Oregon Cities FAQ , with payment details in the Oregon Department of Revenue's Property Tax Payment Procedure , both cited in full in the sources below.

Quick facts

The dates and numbers worth knowing.

Jul 1 to Jun 30

The tax year

Oregon's tax year runs July 1 to June 30, and statements mail by October 25 each year.

3% or 2% discount

Pay early

Pay in full by November 15 for a 3% discount, or two-thirds of the bill by November 15 for a 2% discount.

Nov 15 · Feb 15 · May 15

Installments

After the November 15 payment, installments are due February 15 and May 15.

3% cap

Assessed value growth

Measure 50 limits assessed value growth to 3% per year, no matter what the market does.

$5 and $10 / $1,000

Measure 5 limits

$5 per $1,000 for schools and $10 per $1,000 for general government, on real market value.

$13.5B vs $27.4B

Linn County in one look

Assessed value vs real market value. Schools receive about 41.7% of Linn County's tax dollars.

For current owners

Read your statement, then appeal if it's wrong.

How to read your statement

Two values appear on most statements: real market value, what the county estimates the home would sell for, and assessed value, the number your bill is actually built on.
Your taxable number is the assessed value, or the lower of assessed value and maximum assessed value. It is the one capped at 3% growth a year.
The rate per $1,000 comes from your county, city, schools, and special districts, and any voter-approved bonds or local option levies show up there too.
Your bill equals the assessed value times your total rate, adjusted for compression, discounts, or program exemptions.

If the numbers look wrong: how to appeal

1

Start informally, around December 10

After statements mail in October, ask your county assessor for an informal request for review. No forms, no fees, just a conversation about your property's value.
2

File a formal petition by December 31

If the informal path does not fix it, file a petition with the Property Value Appeals Board (PVAB, formerly BOPTA) in your county. There is no filing fee.
3

Appeal to the Tax Court if needed

If you disagree with the board's decision, you can appeal to the Oregon Tax Court, Magistrate Division, within 30 days of the decision.

County assessors value thousands of properties a year, and honest mistakes happen. Their office is there to value your property correctly, so a calm, specific conversation is the right first move. Bring comparable sales if you have them.

Programs that can lower a bill

Oregon's built-in relief, explained honestly.

The system includes relief for people in specific situations. Nothing here is automatic, and each program has real qualifications, but when you qualify, the difference can be significant.

Senior & Disabled Property Tax Deferral

Oregon has no statewide homestead exemption based on age alone. Instead, qualifying senior and disabled homeowners can defer property taxes on their owner-occupied primary residence.
The state pays the county on the homeowner's behalf, and the deferred amount becomes a lien on the home, accruing about 6% interest per year.
Eligibility is income-based, administered through the county assessor and the Oregon Department of Revenue.
Plainly: it is a loan, not forgiveness, repaid typically when the home is sold or the estate is settled.

See Oregon's deferral programs

Disabled Veteran Exemption

Veterans with a 40% or higher VA disability rating and an honorable discharge can exempt a portion of their home's assessed value.
Surviving spouses and registered domestic partners of qualifying veterans may also qualify.
The home must be owned and occupied as a primary residence, and a VA certificate dated within the last 3 years showing the rating is required.
Apply between January 1 and April 1 with your county assessor.
Related: the Disabled Veteran Deferral lets veterans receiving federal Social Security disability benefits borrow from the state to pay property taxes, at 6% interest, with the deferred amount secured by a lien on the property.

Veteran tax benefits

Farm & Forest Deferrals (EFU & FF)

EFU (Exclusive Farm Use) land that is zoned for exclusive farm use and actively farmed for profit can qualify for special assessment at a lower taxable value, and the benefit stays with the land as long as qualifying farming continues.
Farm deferral also covers qualifying farm use on land outside EFU zones.
Forest deferral covers land held predominantly to grow and harvest marketable tree species, with two Western Oregon forest programs.
The tradeoff: if the use changes or the land is developed, the county can collect deferred taxes, typically going back up to 5 years.

Linn County Benton County Marion County

Special Assessment for Historic Properties

Homes listed on the National Register of Historic Places, individually or as contributing properties in a historic district, or determined historic by the State Historic Preservation Office, can have their assessed value frozen for 10 years.
Administered by the State Historic Preservation Office through your county assessor.
Federal and state rehabilitation tax incentives also exist for qualifying work on listed properties.

Historic property tax incentives

Each program has its own qualifications, and your county assessor's office will tell you honestly whether you qualify. It costs nothing to ask.

For future owners

Mostly good news, once you understand it.

Oregon's system means the taxes on most resale homes are steadier than buyers expect. A few habits will keep you ahead of the bill.

Read the buyer's guide How brokers value homes

Predictable by design

Because taxes follow the property and assessed value grows only 3% a year, a home's tax bill is usually stable and often lower than buyers expect relative to price.
Check before you offer

Pull the current assessed value and the last tax bill for any home you are serious about. Your agent can do this with you, and the county's online tools make it fast.
Budget it monthly

Property taxes are part of the real monthly cost of owning, even when the bill arrives once or twice a year. Divide the annual amount by 12 and it belongs in your budget.
Watch for the exceptions

New construction or major additions can reset assessed value and raise the bill, so a brand-new home or a recent addition deserves a closer look at the statement.

Two similar homes can carry different bills, and the reason is usually districts, not the homes: which school district, fire district, and city levy touch the address. Ask for the property's tax history alongside the price, not just the tax estimate.

Questions homeowners ask

Property taxes, answered plainly.

Why is my tax bill based on assessed value and not what I paid?

Because Measure 50 caps assessed value growth at 3% a year. The sale price and real market value can run well ahead of that, and the system deliberately keeps your taxable number the smaller, steadier one. Most Oregon homeowners pay taxes on less than their home is worth.

Does buying a home reset the assessed value?

No. Taxes follow the property, not the owner, so the assessed value carries over to the new owner. What you paid is not what the bill is based on. The exceptions are new construction and major additions, which do get reassessed and can bring a higher bill.

Why did my taxes go up if I didn't do anything?

Rates and levies change even when your home does not. Voters approve bonds and local option levies, districts authorize new or higher rates, and new districts can join your bill. Those sit on top of your assessed value, which itself can edge up to 3% a year under Measure 50.

Can I appeal my assessment and how?

Yes, in three steps. Start with an informal request for review with your county assessor after statements mail in October, with a deadline around December 10. If that does not fix it, file a formal petition with the Property Value Appeals Board (PVAB, formerly BOPTA) by December 31; there is no filing fee. If you still disagree, appeal to the Oregon Tax Court, Magistrate Division, within 30 days of the board's decision.

When are property taxes due and is there a discount?

The tax year runs July 1 to June 30, statements mail by October 25, and taxes are due by November 15. Pay in full by November 15 for a 3% discount, or two-thirds by then for a 2% discount. After that, installments are due February 15 and May 15.

What programs can lower my bill?

The four most relevant for Valley homeowners: the senior and disabled property tax deferral, the disabled veteran exemption and deferral, farm and forest deferrals, and the 10-year assessed value freeze for qualifying historic properties. Each has its own qualifications, and your county assessor's office will tell you honestly whether you qualify. It costs nothing to ask.

What happens to taxes at closing?

Property taxes are prorated at closing. The seller pays for the part of the tax year they owned the home, and you reimburse them for the part you are taking over, with the exact math laid out on your closing statement. Because Oregon's tax year starts July 1, the proration depends on your closing date.

What's the difference between real market value and assessed value?

Real market value is what the county estimates the home would sell for. Assessed value is the taxable number, rolled back to a 1995-96 baseline and capped at 3% growth a year. Your bill uses the lower of assessed value and maximum assessed value, which is why the taxable number trails market value over time.

City snapshots

What the rates look like, community by community.

Rates are set locally, so your bill depends on which county, city, and districts your street falls in. Here is how the Valley's main communities compare.

The Mid-Willamette Valley at a glance

Linn County

Albany
Lebanon

Benton County

Corvallis
Philomath

Marion County

Salem

Assessment, appeals, exemptions, and deferrals are handled at the county level. City and school district levies sit on top of the county's rate.

Albany

Linn County

Effective rate ≈ 0.97%

The highest effective rate in Linn County, with some sources reporting up to about 1.1%.
Median home around $396,000, with a median annual bill around $3,800 to $5,200 depending on the source.
The city's municipal share is about 0.64 per $1,000, and schools are the largest slice of the bill.

Source: City of Albany property tax transparency page.

Lebanon

Linn County

Effective rate ≈ 0.77%

A lower effective rate than neighboring Albany.
Median home around $355,000.
Only about $0.29 of every property tax dollar collected in city limits goes to the City of Lebanon; the rest goes to the county, schools, and districts.
A new $355,000 home can land around a 48% assessment ratio, meaning roughly $170,000 in assessed value.

Source: City of Lebanon property tax FAQ.

Corvallis

Benton County

Effective rate ≈ 1.01%

Effective rate around 1.01%, the highest of the five snapshot cities.
Corvallis School District 509J is the biggest driver of the bill at about $4.46 per $1,000, plus a bond rate near $1.97 per $1,000.

Source: Corvallis Advocate and Corvallis School District budget documents.

Philomath

Benton County

Effective rate ≈ 0.97%

Effective rate around 0.97%, with a median home around $438,000.
The city set its own 2025-26 rate at $5.3005 per $1,000 of assessed value, on top of county, school, and district rates.

Source: Philomath News 2025-26 budget coverage.

Salem

Marion County

Effective rate ≈ 0.92%

Effective rate around 0.92%.
Salem homeowners saw roughly an 8% average increase for 2025-26, driven by a new $0.98 per $1,000 local option levy, a Salem-Keizer school bond increase, and a Chemeketa Community College bond increase.

Source: Statesman Journal coverage of the 2025-26 bills.

The county is where the answers live.

Assessment, appeals, exemptions, and deferrals are all handled at the county level. Your county assessor's office is the place to ask about your property's numbers, and every program above is administered there.

County assessor offices

County by county

One rule for all three: ask your county first.

Whatever you read about Oregon property taxes, the county is the office that matters for your specific property. Assessment, appeals, exemptions, and deferrals are handled by the Linn, Benton, and Marion county assessor offices. Cities and school districts set their own levies on top of that base, which is why your bill can look different from a friend's house a few streets over.

Linn County Assessor

linncountyor.gov/assessor

Benton County Assessment

assessment.bentoncountyor.gov

Marion County Assessor

co.marion.or.us

A note before you go

This guide is for general educational and informational purposes only, and is not legal, tax, or financial advice. Property tax rates, levies, deadlines, exemptions, and appeal rules change, and they vary by county, city, and taxing district. The figures and examples on this page come from public sources cited below and may differ from a specific property's actual bill. For questions about a specific property, homeowners should contact their county assessor's office and consult a qualified tax professional or attorney.

Sources

Where the numbers on this page come from.

Rate comparisons, deadlines, and program details change, so we wanted every figure traceable. Each source below is public, and most are the very offices that administer the program in question.

Oregon Department of Revenue, Property Tax Payment Procedure (150-310-665) Oregon Department of Revenue, Appeals (property tax appeals) Oregon Department of Revenue, Property Tax Exemptions Oregon Department of Veterans' Affairs, Tax Benefits Oregon State Historic Preservation Office, Tax Incentives Linn County Assessor Benton County Assessment Marion County Assessor, Property Tax FAQ League of Oregon Cities, FAQ: Measures 5 and 50 City of Albany, Where Do Your Property Taxes Go? City of Lebanon, Property Tax FAQ Philomath News, 2025-26 City Budget Coverage Statesman Journal, Bonds, Levy Send Salem Property Taxes Soaring Corvallis Advocate, Benton County Property Tax Tutorial Corvallis School District 509J, Budget Updates Oregon Legislative Revenue Office Ownwell, Property Tax Bills in Oregon tax-rates.org, Oregon Property Taxes By County SmartAsset, Oregon Property Tax Data

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