Are Real Estate Taxes the Same as Property Taxes? Understanding the Difference in Oregon

When buying or selling a home in Oregon, taxes are a big part of the equation. But many homeowners (and even some real estate professionals) get confused about one common question:

Are real estate taxes the same as property taxes?

While the terms are often used interchangeably, they have different meanings—and understanding them can help you avoid surprises when budgeting for your home purchase or sale.

Let’s break it down.

What Are Property Taxes?

Property taxes are taxes you pay on real estate you own. They are assessed annually by the county where your property is located and help fund local services like schools, fire departments, law enforcement, and public infrastructure.

In Oregon, property taxes are based on the assessed value of your home, which is different from the market value. Thanks to Measure 50 (passed in 1997), property tax increases are capped at 3% per year, unless significant improvements are made to the property.

How Property Taxes Work in Oregon:

✔️ Assessed value ≠ Market value (usually lower due to tax limitations)
✔️ Property taxes are due every November 15th
✔️ Discounts: Pay in full by the due date and get a 3% discount
✔️ Property tax rates vary by county and city

Example: A home in Portland with an assessed value of $400,000 might have a tax rate of $2.50 per $1,000 of assessed value, meaning you'd owe $10,000 per year in property taxes.

🔎 Want to see what property taxes would be for a home you’re considering? Contact me, and I’ll help you break it down!

What Are Real Estate Taxes?

"Real estate taxes" is a broad term that can refer to any taxes related to owning, buying, or selling property. This includes:

✅ Property Taxes (discussed above)
✅ Capital Gains Taxes – Taxes paid when you sell a home for a profit
✅ Transfer Taxes – Fees paid when ownership of a property changes
✅ Estate Taxes – Taxes on inherited property
✅ Income Taxes on Rental Property – If you own rental real estate, you must report rental income

While property taxes are paid yearly, some real estate taxes (like capital gains) only apply in certain situations, such as when you sell a home.

How Do These Taxes Affect Buying or Selling a Home in Oregon?

1️⃣ For Homebuyers:

• Property taxes affect your monthly mortgage payment since they are included in escrow.
• Oregon has no sales tax, but higher property taxes compared to some other states.
• Different cities and counties have different tax rates—important to consider when choosing where to buy.

2️⃣ For Home Sellers:

• If you sell your home for more than you paid, capital gains tax may apply. However, Oregon follows the federal exemption rule (verify with the IRS or a tax professional):
  • $250,000 tax-free profit for single filers
  • $500,000 tax-free profit for married couples (if you lived in the home for 2 of the last 5 years)

3️⃣ For Investors & Rental Owners:

• Oregon has no state tax on real estate transfers, which is a perk for investors.
• Rental income is taxed as ordinary income, but deductions can help offset costs.

📞 Have Questions About Oregon Real Estate Taxes? Let’s Talk!

Navigating taxes when buying or selling a home in Oregon can be tricky—but that’s where I come in! Whether you’re a homebuyer, seller, or investor, I’ll help you understand your potential obligations and maximize your savings.

📞 Call me at (503) 913-7615
📧 Email me at Paul@OregonSold.com
💻 Visit OregonSold.com for expert real estate guidance

Let’s make your next move a smooth one! 🚀