Taxes in Eugene
Oregon levies genuinely NO state sales tax -- one of only five US states with none -- but this does not make Eugene low-tax overall: Oregon's real, current graduated income tax tops out at 9.9% (income above $125,000 single / $250,000 married-filing-jointly for 2026), among the highest top marginal rates in the country, though this coexists with a genuinely favorable, Measure 50-shaped Lane County property tax burden.
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Learn moreA Real Tax-Structure Inversion, Not a Simple 'No-Tax' Story
Oregon is genuinely one of only five US states with NO state sales tax (0%) -- a real, meaningful everyday-purchase savings. But this must never be oversimplified into 'Oregon has no taxes': Oregon's graduated state income tax runs 4.75% to 9.9% for 2026, with the top 9.9% rate applying to taxable income above $125,000 (single) / $250,000 (married filing jointly) -- among the highest top marginal state income tax rates in the US, a real, meaningful cost that movers from no-income-tax or low-tax states should budget for directly.
Property Tax Runs Genuinely Favorable, Shaped by a Real, Distinctive State Mechanic
As detailed in full on the property-taxes topic page, Lane County's effective property tax rate runs favorably (roughly 0.86% commonly cited, near or below the national median), shaped by Oregon's real Measure 50 mechanic, which caps annual growth in a property's taxable assessed value at 3% regardless of actual market appreciation.
No Local Income Tax in Eugene, Unlike Portland
Eugene residents do NOT pay any additional local income tax on top of Oregon's statewide rate -- a real, genuine contrast with Portland, where Multnomah County and the Metro regional government levy real, additional local income taxes (the Preschool for All and Supportive Housing Services taxes) on higher earners. This is a real, disclosed advantage for Eugene specifically relative to Portland for higher-income movers.
No Special State-Level Capital Gains Treatment
Oregon taxes capital gains as ordinary income under its graduated income tax structure, rather than through a separate excise mechanism like Washington's capital gains excise tax -- a comparatively simple structure for investors and equity-compensated movers to understand, though the real, high top rate (9.9% for 2026) still applies to substantial gains.
Property Taxes and Insurance: Pointers to Full Detail
Lane County property taxes run at a genuinely favorable, Measure 50-shaped rate covered in full on the property-taxes topic page rather than repeated here, while Oregon's real, current statewide homeowners-insurance rate increases (driven substantially by wildfire risk) are covered on the homeowners-insurance topic page.
Key takeaways
- Oregon has genuinely zero state sales tax -- one of only five US states with none -- but a real, current 9.9% (2026) top marginal income tax rate, among the highest in the country. Never mistake one for the other.
- Lane County's property tax runs genuinely favorable (roughly 0.86% commonly cited), shaped by Oregon's real, distinctive Measure 50 assessed-value growth cap.
- Eugene residents pay NO additional local income tax, a real, genuine contrast with Portland's Multnomah County/Metro regional local income taxes on higher earners.
- Oregon taxes capital gains as ordinary income under its graduated structure, rather than a separate capital gains excise mechanism like Washington's -- though the real 9.9% top rate still applies.
- Homeowners insurance and property tax specifics are covered in full on their own dedicated topic pages rather than repeated here.
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