Oregon Measure 5/50: No Reassessment When You Buy a Rental
Program and regulatory figures verified July 24, 2026. Details change; confirm your scenario with us.
Oregon's property-tax system is genuinely unusual, and in a way that favors an investor buying a long-held rental. The headline correction is simple: buying the property does not reset its taxes.
Will buying a rental property in Oregon trigger a tax reassessment?
No, and this is the correction worth the most money. Under Measure 50 (which built on Measure 5), every Oregon property carries a Maximum Assessed Value that is separate from its market price. That MAV carries the seller's Maximum Assessed Value forward with the property when you buy; there is no California or South Carolina style point-of-sale reset. So a rental that has been held for 20 years may have an assessed value far below what you pay for it, and your tax bill is based on that carried-forward number, not your purchase price. Investors arriving from acquisition-value states brace for a reassessment that legally does not happen in Oregon. Confirm a specific parcel's MAV with the county assessor before you model the taxes; it is often a pleasant surprise.
How Measure 5/50 actually computes your bill
Two numbers govern every Oregon property. The Real Market Value (RMV) is what the assessor thinks it would sell for. The Maximum Assessed Value (MAV) grows by at most 3% a year from its established base. Your taxable assessed value is the lesser of the two, and in most years for most property the MAV is lower, so it controls. Measure 5 layers on a separate constraint: it caps the tax rate at roughly $15 per $1,000 of RMV for combined general-government and school levies, which triggers "compression" in high-levy areas where the rate would otherwise exceed the cap. The upshot for a buyer: your taxes rarely jump just because you paid a high price, and the 3% MAV growth limit makes the bill predictable year to year. That predictability is a quiet underwriting advantage inside PITIA.
How high are property taxes on an Oregon rental property?
Roughly 0.8–0.9% effective statewide for the 2025–26 tax year, which is moderate: well under the 2%-plus effective rates of the big Texas metros. Portland and Multnomah County run higher, nearer 1.0–1.1% median effective (and some Multnomah levy codes reach much higher as a share of assessed value), while Bend and Deschutes County sit around 0.82%. Because overlapping levy codes vary block to block, we underwrite the actual county bill on the specific parcel rather than a statewide average, and the Measure 5/50 carry-forward often means that bill is lower than a comparable purchase-price-based estimate. County-line differences in the Portland metro are on the Portland page.
Do I owe Oregon tax if I sell my rental as an out-of-state owner?
Likely yes, and it shows up at closing. When a nonresident of Oregon sells real property here, the escrow or title company must withhold tax and remit it to the state: specifically, the least of 4% of the sale price, 8% of the gain, or the seller's net proceeds, reported on Form OR-18-WC. It is a withholding, not a separate tax, so it is credited against your actual Oregon tax when you file a nonresident return, but it is real cash held back at the table, and out-of-state owners are frequently surprised by it. If you are deferring the gain through a 1031 exchange, the withholding analysis changes; your CPA and qualified intermediary handle that. We flag it so an out-of-state seller budgets for it rather than discovering it on the settlement statement.
No pressure, no obligation, and no salesy follow-up: a 20-minute call with our team, real numbers, and a straight answer on whether the deal pencils.
Frequently asked questions
Will buying a rental property in Oregon trigger a tax reassessment?
No. Oregon's Measure 5/50 carries the seller's Maximum Assessed Value forward with the property at sale, so there is no point-of-sale reset like California or South Carolina. A long-held rental often carries an assessed value well below its market price, and your tax bill is based on that carried-forward number, not your purchase price. Confirm the parcel's MAV with the county assessor.
How high are property taxes on an Oregon rental property?
Roughly 0.8–0.9% effective statewide for 2025–26, moderate by national standards. Portland and Multnomah County run higher, nearer 1.0–1.1% median, while Bend and Deschutes County sit around 0.82%. Levy codes vary block to block, so we underwrite the actual county bill on the specific parcel, which the Measure 5/50 carry-forward often makes lower than a purchase-price estimate.
What is Oregon's Maximum Assessed Value and how fast does it grow?
The Maximum Assessed Value (MAV) is a value separate from market price that grows at most 3% a year from its base. Your taxable value is the lesser of MAV or Real Market Value, and MAV usually controls. It does not reset when you buy, which is why buying a long-held Oregon rental keeps the seller's low assessed value and makes the tax bill predictable year to year.
Do I owe Oregon tax if I sell my rental as an out-of-state owner?
Likely yes at closing. Oregon requires escrow to withhold the least of 4% of the sale price, 8% of the gain, or your net proceeds from a nonresident seller (Form OR-18-WC). It is a withholding credited against your actual Oregon tax on a nonresident return, not an extra tax, but it is real cash held back at the table. A 1031 exchange changes the analysis; your CPA and qualified intermediary handle it.
Mike Certo · NMLS #260555 · Cornerstone First Mortgage NMLS #173855 · Equal Housing Lender. Educational content, not a loan commitment and not legal or tax advice. Oregon's rent-cap figure, city and county STR rules, and tax figures change; verify current requirements with the city or county, your CPA, or an Oregon real estate attorney before you buy. Loans are subject to buyer and property qualification.