How Oregon Property Taxes Really Work
A Practical Guide for Physicians Relocating to Portland
One of the most common questions I get is “what’s the property tax rate for Portland?” And of course like many responses in real estate, the answer is “well, it depends….” Here is a breakdown of how property taxes work in the Portland metropolitan area:
They are not simply “X% of your purchase price.”
They don’t reset the way many buyers expect.
And two nearly identical homes on the same street can have very different tax bills.
If you’re coming from California, Texas, or Washington, Oregon’s system feels… nuanced.
The Core Structure: Assessed Value ≠ Market Value
In Oregon, three numbers matter:
Real Market Value (RMV) – what the home would likely sell for
Assessed Value (AV) – the number you are taxed on
Maximum Assessed Value (MAV) – the capped growth base
The modern system stems from Measure 50.
Since 1997:
👉 Assessed value growth is generally capped at 3% per year, regardless of how quickly market prices rise.
This creates long-term stability — but also complexity.
Why Taxes Don’t Reset When You Buy
Unlike California’s Proposition 13 system, Oregon does not automatically reset taxes to full market value when a home sells.
Instead:
The property keeps its existing Maximum Assessed Value base
That base increases up to 3% annually
Your purchase price does not automatically become your taxable value
This can work in your favor — particularly in established neighborhoods where homes haven’t been significantly expanded.
What Actually Determines Your Property Tax Bill
Your bill is made up of two components:
1️⃣ Assessed Value
The capped number growing at up to 3% per year.
2️⃣ Local Tax Rates
This is where it gets layered.
Oregon property taxes are a stack of overlapping districts, including:
School district
County
City
Fire district
Library district
Parks & recreation
Voter-approved bonds
Urban renewal districts
Each district adds a rate per $1,000 of assessed value.
Those rates combine to create your total.
What Do Rates Actually Look Like?
In most Portland-area neighborhoods, total combined rates typically fall between:
$16 and $22 per $1,000 of assessed value
That translates roughly to:
1.6%–2.2% of assessed value
Important:
That percentage applies to assessed value, not market value.
Concrete Example
Let’s say:
Market value: $1,200,000
Assessed value: $750,000
Combined tax rate: $19 per $1,000
$750,000 ÷ 1,000 × 19 = $14,250 annually
Not 2% of $1.2M.
That distinction is critical.
How Rates Vary by County
Physicians relocating often ask about differences between counties.
Here’s a general overview.
📍 Multnomah County (Portland Proper)
Common range:
$13–$26 per $1,000 of assessed value
Factors:
Portland Public Schools bonds
City of Portland levies
Urban renewal districts
Metro regional overlays
Some neighborhoods fall toward the higher end due to bond exposure.
📍 Washington County (Beaverton, Cedar Mill, Bethany)
Common range:
$14–$18 per $1,000
Often:
Different school bond structures
Fewer city-level overlays in some areas
Less urban renewal layering depending on location
Rates can feel modestly lighter in certain areas — but not universally.
📍 Clackamas County (Lake Oswego, West Linn, Happy Valley)
Common range:
$11–$21 per $1,000
Clackamas varies meaningfully by district.
For example:
Lake Oswego often has strong school bonds
West Linn has distinct district overlays
Some areas carry park or library district variations
Two homes a mile apart can have different total rates due to tax code boundaries.
Why Assessed Value Often Matters More Than the Rate
Here’s where the analysis becomes more interesting.
A home with:
A $17 per $1,000 rate
But a recently reassessed $900,000 AV
May cost more annually than:
A $20 per $1,000 rate
On a $650,000 AV
In Oregon, the base matters as much as the rate.
Constitutional Limits & “Compression”
Oregon has constitutional limits:
$10 per $1,000 for general government
$5 per $1,000 for education
If combined rates exceed those limits, “compression” can reduce the bill.
This sometimes slightly lowers effective taxes in higher-value homes.
It adds another layer of nuance.
What Triggers Reassessment?
Major improvements can increase assessed value:
Adding square footage
Finishing a basement
Structural additions
Adding an ADU
Cosmetic updates typically do not.
If you’re considering expanding a home in Lake Oswego or West Linn, it’s worth modeling potential tax impact before starting construction.
The Long-Term Planning Perspective
Over a 15–20 year hold:
The 3% cap provides stability
Bond exposure compounds
Assessed value history matters
County overlays affect long-term carrying costs
Oregon’s system isn’t inherently high or low compared to other states.
It’s structurally different.
And for buyers, understanding that structure allows for more predictability in monthly payment variations.
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