No, Oregon does not have a sales tax. It is one of five states with no general statewide sales tax, and unlike Alaska it also has no local general sales taxes, so everyday purchases like clothing, electronics, groceries, and household goods ring up tax-free at the register anywhere in the state. A handful of narrower taxes still apply to specific products and transactions, and those are what you’ll actually see on receipts.
Local Taxes on Prepared Food and Lodging
A few Oregon cities tax prepared food and drinks even though the state doesn’t. Ashland charges a 5 percent tax on prepared foods and non-alcoholic beverages sold at restaurants, coffee shops, and delis.1Ashland, OR. Your Taxes at Work Yachats applies the same 5 percent rate to prepared food and beverage sales.2City of Yachats, OR. Prepared Food and Beverage Tax The tax hits ready-to-eat meals and drinks only. Raw groceries from a supermarket are not covered.
Hotels, motels, vacation rentals, and other short-term stays carry a transient lodging tax set by the local government. Rates commonly run from about 3 percent up to 10 percent depending on the city or county. Ashland’s lodging tax, for instance, is 10 percent.1Ashland, OR. Your Taxes at Work If you’re visiting, expect to see this line on your bill.
Excise Taxes on Cannabis, Tobacco, Alcohol, and Fuel
Oregon levies excise taxes on several specific products. These aren’t sales taxes, but they raise what you pay.
Cannabis
Recreational marijuana is taxed at 17 percent of the retail price at the point of sale, listed as a separate line on your receipt.3Oregon State Legislature. Oregon Revised Statute Chapter 475C – Section 475C.674 Some cities and counties tack on up to 3 percent more, so the combined rate can reach 20 percent in certain areas.4Oregon Department of Revenue. Marijuana
Tobacco
Cigarettes carry a per-cigarette excise tax paid by distributors and passed through in the shelf price. The base statutory rate is 36.5 mills per cigarette, made up of a 29-mill primary tax and a 7.5-mill additional tax.5Oregon State Legislature. Oregon Revised Statutes Section 323.030 – Tax Imposed; Rate Additional state taxes and fees apply on top of that base. Cigars, pipe tobacco, and chewing tobacco are taxed separately.
Alcohol
Beer and wine carry state excise taxes of roughly 8 cents per gallon and 67 cents per gallon respectively.6Oregon Liquor and Cannabis Commission. Alcohol Revenue Distilled spirits work differently. Oregon is a “control state,” so the Oregon Liquor and Cannabis Commission is the exclusive importer and distributor. The state sets retail prices with a markup averaging about 105 percent above cost, and there is no separate tax line at checkout.
Motor Fuel
Gasoline and diesel are taxed at 40 cents per gallon, paid by distributors and built into the pump price.7Oregon Department of Transportation. Fuels Tax Updates Legislation passed in 2025 would raise the rate, but it has been referred to voters, and the 40-cent rate stays in effect while that plays out.
Vehicle Privilege and Use Taxes
Buying a car is where Oregon’s tax-free reputation runs into an exception. Oregon charges a 0.5 percent vehicle privilege tax on the retail price of new vehicles sold by Oregon dealers.8Oregon State Legislature. Oregon Revised Statute Chapter 320 – Miscellaneous Taxes The tax is legally imposed on the dealer, but it’s routinely passed through to the buyer.
Buy a new vehicle out of state and bring it to Oregon, and you owe a 0.5 percent vehicle use tax instead. You have to pay it before you can register or title the vehicle here.9Oregon State Legislature. Oregon Revised Statutes Section 803.203 – Proof of Payment of Taxes The use tax has to be paid within 30 days of when it comes due; miss that window and interest accrues, and the Department of Revenue can issue a warrant to collect the balance with penalties.
Both taxes apply to new vehicles. Used-car transactions between private parties are not what these provisions target.
Online Shopping and Cross-Border Purchases
Online retailers do not collect sales tax on shipments to Oregon addresses, because there is no Oregon sales tax for them to collect.10Oregon Department of Revenue. Sales Tax in Oregon The 2018 Supreme Court decision in South Dakota v. Wayfair, which lets states force out-of-state sellers to collect their sales tax, doesn’t change anything for Oregon shoppers.
The vehicle use tax is the main exception. A new car bought from an out-of-state dealer and brought into Oregon still triggers the 0.5 percent use tax.10Oregon Department of Revenue. Sales Tax in Oregon Booking a hotel or rental car in another state through an online travel site will pull in that state’s taxes too, not Oregon’s.
If you live in Washington or another sales-tax state and cross into Oregon to shop, remember that your home state likely has a use tax requiring you to self-report and pay tax on items bought out of state. Enforcement against individual shoppers varies, but the legal obligation is real.
What No Sales Tax Means for Your Federal Return
Federal itemizers can deduct either state income tax or state sales tax, not both. Since Oregon has no sales tax to deduct, residents who itemize deduct their Oregon income tax instead. Oregon’s income tax rates are among the highest in the country, with a top marginal rate of 9.9 percent, and that higher income tax is part of the tradeoff.
For 2026, the combined federal deduction for state and local taxes, including property tax and state income tax, is capped at $40,400 for most filers and $20,200 for married filing separately. Anything above that cap is not deductible. Residents of states that have both a sales tax and an income tax face the same cap, so Oregonians aren’t at a unique disadvantage, but the ceiling matters if your income and property taxes together run high.