In this guide, we’ll cover everything you need to know about property taxes in Oregon, ensuring you’re well-equipped to handle this aspect of homeownership. If you’re considering buying a home in Oregon, we recommend familiarizing yourself with what to expect in terms of tax costs.
What Are Oregon Property Taxes?
Before we jump into property tax due dates, let’s understand what property taxes are in Oregon. These taxes are levied on the value of your real estate, which includes both the land and any structures on it. The Oregon property tax rate can vary, but it’s essential to grasp its impact on homeowners across different counties like Washington, Multnomah, and Clackamas.
How Much Is Property Tax in Oregon?
The amount you’ll pay in property tax in Oregon depends on several factors, including your property’s location and assessed value. On average, you can expect to pay 1% of your property’s assessed value. Keep in mind, the average property tax rate in Oregon might vary from county to county.
When Are Oregon Property Taxes Due? When Are They Considered Late?
Each year on October 25th, your county tax collector will mail your property tax statement directly to you. You have the option to pay your property taxes in a single lump sum or spread across three equal installments.
- Lump sum payments are due on November 15th each year.
- Installment payments are split into three equal payments:
- First payment: November 15th
- Second payment: February 15th
- Third payment: May 15th
Should I Pay A Lump Sum or Split My Property Tax Payments Into Installments?
In Oregon, taxpayers who pay their full property tax amount by November 15th receive a 3% discount. A 2% discount is available for those who pay two-thirds of their tax by this date. However, to qualify for any discount on the current year’s tax bill, all overdue taxes, penalties, and interest from previous years must be cleared first. Payments are first allocated to settle any outstanding past taxes before being applied to the current year’s tax.
Interest on late payments is charged at 1.333% per month, amounting to an annual rate of 16%. This interest accrues on each installment if not paid by specific dates: interest on the first one-third installment starts on December 16, on the second one-third installment from February 16, and on the final one-third after May 16. While past-due amounts are indicated on the tax statement, the displayed total may not include the accrued interest, which is calculated by the tax collector at the time of payment.
How Are Property Taxes Calculated in Oregon?
Calculating your property tax in Oregon involves multiplying the assessed value of your property by the property tax rate. This rate can vary depending on your county and any local levies that may apply. Understanding how your property is assessed and how tax rates are determined can help you anticipate your tax bill.
For specific questions about your Oregon property taxes, refer to the Oregon Department of Revenue website for additional information.
What About Oregon Property Tax Exemptions?
Oregon offers property tax exemptions that can significantly reduce the tax burden for eligible homeowners. These exemptions can apply to various groups, including seniors, veterans, and those with disabilities. It’s worth exploring if you qualify for any of these exemptions to potentially lower your tax bill.
View mortgage rates for
April 29, 2024
Frequently Asked Questions
How Is Property Assessed in Oregon?
In Oregon, properties are assessed annually by the county assessor’s office. The assessed value is based on several factors, including the property’s market value and any improvements made.
What Happens To Property Taxes In Oregon When There Is A Change In Ownership?
When purchasing property through a contract, the property tax statement is usually sent to the legal owner. However, the legal owner can request in writing that the tax statement be mailed to the buyer instead. Changes in ownership occurring after July 1 might not be reflected in the tax statement issued in the fall. If you’ve purchased property after this date and haven’t received a tax statement by November 1, it’s advisable to contact the tax collector to find out the amount due. Timely payment of your taxes is essential to avoid interest and penalties.
In cases where you expect to owe property taxes but haven’t received a tax statement, you have the option to pay an estimated amount to the tax collector. Once the exact tax amount is determined, you might receive a refund or be required to pay additional taxes, depending on the initial estimate’s accuracy.
What Happens If I Don’t Pay My Property Taxes on Time in Oregon?
Late payments on property taxes in Oregon can lead to penalties and interest. It’s crucial to pay your taxes by the November 15th deadline to avoid these additional costs.
Can I Pay My Property Taxes in Installments in Oregon?
Yes, Oregon law allows property tax payments to be made in installments. The typical schedule is a third each on November 15th, February 15th, and May 15th.
What Is Measure 50 and How Does It Affect My Property Taxes in Oregon?
Measure 50, passed in Oregon in 1997, limits the rate of growth of assessed property values. This means that even if the market value of your property increases significantly, the assessed value (and consequently your property tax) can only increase by a set percentage of 3% each year.
How Do I Find Out My Property Tax Rate?
Your property tax rate in Oregon can be found on your property tax statement or by contacting your local county assessor’s office. This rate is crucial in calculating the amount of property tax you owe.
Want To Learn More?
Understanding when property taxes are due in Oregon can save you time, stress, and money. At JVM Lending, we’re always here to help you navigate the complexities of Oregon property taxes, from Washington County to Multnomah County to Clackamas County and everywhere in between. Knowing all the costs associated with buying a home, including taxes, is necessary in order for you to make the right decisions on your homebuying journey.
If you have more questions about property taxes or anything else related to homeownership in Oregon, don’t hesitate to reach out to our team of experts at JVM Lending.
*Please Note: The information provided in this blog post is intended for informational and educational purposes only. JVM Lending is not a tax professional or financial advisor. Property tax laws and regulations can be complex and may vary by location and individual circumstances. We strongly recommend consulting with certified tax professionals for personalized advice and guidance on property tax matters. If you’d like a referral to a tax professional or financial advisor, contact us and we’ll happily refer you to one of the trusted professionals in our network.
