Oregon sales tax at a glance
| Type of tax | No general sales tax |
|---|---|
| State rate | None |
| Local sales taxes | None |
| Groceries | No sales taxOregon has no sales tax, so groceries are never taxed at the register. |
| Prescription drugs | No sales taxOregon has no sales tax, so prescription and over-the-counter drugs are not taxed. |
| Clothing | No sales taxClothing and shoes carry no sales tax anywhere in Oregon. |
Official rates: Oregon Department of Revenue: Sales tax in Oregon.
Worked examples
A $1,000 laptop bought in Portland
| Rate | 0% |
|---|---|
| Price before tax | $1,000.00 |
| Sales tax | $0.00 |
| Total | $1,000.00 |
Working: $1,000.00 × 0% = $0.00. With no sales tax, the total equals the price. The same laptop in a neighboring state with sales tax would cost tens of dollars more.
A $52.50 takeout meal in Ashland (5% meals tax)
| Rate | 0% state + 5% local = 5% |
|---|---|
| Price before tax | $50.00 |
| Sales tax | $2.50 |
| Total | $52.50 |
Working back: $52.50 ÷ 1.05 = $50.00, so the tax was $2.50. This is the one common Oregon purchase with a tax added: Ashland's 5% meals tax. Working back gives the menu price before the tax.
Why Oregon has no sales tax
Oregon voters have rejected a general sales tax many times, and the Department of Revenue states plainly that Oregon "doesn't have a general sales or use/transaction tax". Shops do not charge tax, and Oregon businesses do not collect sales tax for Oregon when they ship within the state. The state funds itself mainly through personal income tax, which is one of the higher ones in the country, plus local property taxes. That trade-off matters if you are comparing the cost of living with Washington, which has no income tax but a high sales tax.
The few taxes that look like sales tax
Some specific purchases carry their own taxes. New vehicles bought from a dealer outside Oregon owe a 0.5% vehicle use tax when they are registered in the state, and Oregon dealers collect a matching 0.5% privilege tax on new vehicle sales. The city of Ashland charges a 5% meals tax on prepared food and non-alcoholic drinks, including takeout. Lodging taxes also apply to hotel stays. None of these apply to ordinary shopping.
Shopping in Oregon from Washington or California
Shoppers from neighboring states often cross into Oregon to avoid sales tax. Remember that your home state may still expect use tax. Washington residents owe Washington use tax on items they bring home for use in Washington, and California residents owe California use tax on taxable items bought out of state for use in California. Large purchases such as furniture, electronics and vehicles are the ones states look for.
Oregon vs. neighboring states
| State | State rate | Avg. combined | Groceries |
|---|---|---|---|
| Oregon | 0% | 0.00% | No sales tax |
| Washington | 6.5% | 9.57% | Exempt |
| Idaho | 6% | 6.03% | Taxed (income tax credit) |
| Nevada | 6.85% | 8.24% | Exempt |
| California | 7.25% | 9.03% | Exempt |
Average combined rates are from the Tax Foundation, midyear 2026 report. See sales tax rates for every state for the full table.