Oregon Estate Tax: Threshold & Rates

A genuinely simple table for once — but a genuinely complex credit for farm and forest families.

ORS §118.010, §118.140, §118.145

Quick answer: exemption of $1,000,000, then 10% to 16% on the amount above it, applied directly with no separate credit calculation or cliff. Run your own numbers in the Oregon estate tax calculator.

The full bracket table, straight from the statute

The Natural Resource Credit, for farm and forest families

Oregon offers a credit under ORS 118.140 for qualifying farm, forestry, or commercial fishing property. The credit is computed as a ratio: qualifying natural resource property (capped at $7.5 million) divided by the total adjusted gross estate, multiplied against the tax otherwise due. To qualify, the property generally must have been owned and used in the business for five of the eight years before death, transferred to family members, and kept in the business for five years afterward.

A stricter, full exemption also exists

Separately, ORS 118.145 allows certain qualifying natural resource property to be fully exempt from Oregon estate tax entirely, up to $15 million, under tighter five-year ownership and material-participation requirements both before and after death. An estate can claim either this exemption or the ORS 118.140 credit, not both, for the same property.

A longer filing window than most states

The Oregon estate tax return is due 12 months after the date of death — three months longer than the 9-month deadline common in most other states with an estate tax.

Facing probate in Oregon?

A local probate attorney can review your estate — many offer a free consultation.

Talk to an Oregon attorney

For a resident decedent who also owned real or tangible property outside Oregon, the tax is apportioned by a ratio of Oregon-situs property to the total gross estate — the same apportionment applies in reverse for a nonresident who owned Oregon property.

Threshold & rates — frequently asked questions

What is the exact Oregon estate tax bracket table?

$1,000,000-$1,500,000: $0 plus 10.0% of the excess over $1,000,000. Then in rising steps: 10.25% to $2.5M, 10.5% to $3.5M, 11.0% to $4.5M, 11.5% to $5.5M, 12.0% to $6.5M, 13.0% to $7.5M, 14.0% to $8.5M, 15.0% to $9.5M, and 16.0% above $9.5M.

What is the Natural Resource Credit?

A credit under ORS 118.140 for qualifying farm, forestry, or commercial fishing property, computed as a ratio of qualifying natural resource property (capped at $7.5 million) to the total adjusted gross estate, subject to five-of-eight-year ownership and use requirements before death and five years of continued family use afterward.

Is there a separate, full exemption for natural resource property?

Yes — ORS 118.145 allows certain qualifying natural resource property to be fully exempt, up to $15 million, under stricter five-year ownership, material participation, and post-death continuation rules than the credit under ORS 118.140.

When is the Oregon estate tax return due?

12 months after the date of death — a longer window than the 9-month deadline common in most other states.

This page provides general guidance only and is not legal or tax advice. Based on ORS §118.010, §118.140, §118.145. Confirm current figures with the Oregon Department of Revenue or a licensed attorney before acting.