Quick answer: yes — an estate can owe zero federal estate tax and still owe real money to Oregon, because the two thresholds sit further apart here than in almost any other state. Run your own numbers in the Oregon estate tax calculator.
Two exemptions, a fifteenth apart
The federal estate tax exemption sits at roughly $15,000,000 per individual for 2026. Oregon's own exemption is fixed at $1,000,000 — about a fifteenth of the federal line, the widest gap of any state that still taxes estates. Any estate between those two numbers owes nothing federally but can face a genuine Oregon tax bill starting at 10%.
Ordinary homeowners cross this line easily
Median home values in the Portland metro area exceed $500,000. Add retirement accounts, a life insurance policy, and ordinary savings, and a paid-off Oregon home can push a middle-class estate over the $1,000,000 threshold well before it ever comes close to the federal exemption — a genuinely common surprise for families who assumed only the wealthy face this tax.
The gap has only widened over time
Oregon's $1,000,000 exemption has been fixed since 2012 and isn't indexed for inflation, while the federal exemption has climbed substantially over the same period. That means the distance between the two thresholds grows every year, even as home values and retirement savings rise alongside it.
A local probate attorney can review your estate — many offer a free consultation.
See the full threshold and rate breakdown for exactly how the 10%-16% table applies above the $1,000,000 line, including the Natural Resource Credit for farm and forest families.