Oregon Estate Tax Calculator (2026): Estimate What the Estate Owes
Figures verified October 17, 2026 against Oregon Department of Revenue · Update log
Short answer
Yes. For deaths in 2026, Oregon taxes estates over $1,000,000 at 10% to 16%. Oregon's $1 million exemption is the lowest in the country and is not indexed, so a paid-off house and retirement savings can be enough to owe. The executor files OR-706 and pays from the estate, due 12 months after the date of death. Federal estate tax applies only above $15 million, so most estates that owe Oregon tax owe nothing federally.
Oregon estate tax calculator
Enter values at the date of death. Rough numbers are fine; type 450000, 450k or 2.5m. Leave anything that does not apply blank.
How the Oregon estate tax is calculated
The starting point is the taxable estate: everything the person owned at death (the gross estate), minus debts and mortgages, funeral and administration costs, and what passes to a surviving spouse or to charity. The house, bank and brokerage accounts, retirement accounts, business interests and life insurance the person owned all count, including accounts that pass straight to a named beneficiary.
Oregon's rate table is written in estate dollars and starts at the exemption: nothing is owed on the first $1,000,000, then each slice above it is taxed at that slice's rate.
Oregon rates for 2026 deaths
| Taxable estate over | Up to | Rate on that slice |
|---|---|---|
| $1,000,000 | $1,500,000 | 10% |
| $1,500,000 | $2,500,000 | 10.25% |
| $2,500,000 | $3,500,000 | 10.5% |
| $3,500,000 | $4,500,000 | 11% |
| $4,500,000 | $5,500,000 | 11.5% |
| $5,500,000 | $6,500,000 | 12% |
| $6,500,000 | $7,500,000 | 13% |
| $7,500,000 | $8,500,000 | 14% |
| $8,500,000 | $9,500,000 | 15% |
| $9,500,000 | and above | 16% |
Worked example: a $2.65 million Oregon estate
A Portland retiree dies with a $900,000 house, a $700,000 IRA, an $800,000 brokerage account and a $250,000 life insurance policy he owned. Debts are $50,000 and costs $100,000.
Step by step
| Everything the person owned (gross estate) | $2,650,000 |
| Debts and mortgages | − $50,000 |
| Funeral and administration costs | − $100,000 |
| Taxable estate | $2,500,000 |
| State exemption (2026 deaths) | $1,000,000 |
| Estimated state estate tax | $152,500 |
Bracket by bracket
Oregon rates applied to the taxable estate (the table starts at the exemption). Amounts are shown in estate dollars.
| Slice of the estate | Amount | Rate | Tax |
|---|---|---|---|
| $1,000,000 to $1,500,000 | $500,000 | 10% | $50,000 |
| $1,500,000 to $2,500,000 | $1,000,000 | 10.25% | $102,500 |
| Total from the brackets | $152,500 | ||
Result: Oregon estate tax of $152,500, or 6.1% of the $2,500,000 taxable estate. No federal estate tax, because the estate is under $15 million. Oregon requires Form OR-706 when the gross estate is $1,000,000 or more, before any deductions, even if no tax is due.
Ways the number can change
- Property outside Oregon. Oregon taxes only the Oregon share of the estate. The OR-706 instructions show a $1,450,000 estate with $800,000 of Oregon property: the $43,000 tax is cut to about $23,724. A resident's real estate in another state is left out of the Oregon share.
- An Oregon-only marital election. Property left in trust for a spouse can be deferred with an Oregon-only QTIP or Oregon special marital property (OSMP) election, made on the Oregon return even when the federal election differs.
- Farm, forest and fishing property. Qualifying natural resource property may be exempt (deaths on or after July 1, 2023) or earn a credit, but not both.
- A return even when no tax is due. The return is required when the gross estate is $1,000,000 or more, before deductions, so an estate that owes nothing after debts may still file.
- Values at the date of death. The return uses appraised fair market values on the date of death. A house or business valued differently from your estimate moves the tax, at the Oregon rate on that slice.
What the executor files, and when
- Oregon OR-706: due 12 months after the date of death. Oregon requires Form OR-706 when the gross estate is $1,000,000 or more, before any deductions, even if no tax is due.
- File Form OR-706 with the Oregon Department of Revenue within 12 months. Form OR-706-EXT gives an automatic 6-month extension to file, but not to pay. Oregon Department of Revenue.
- Federal Form 706: only if the estate is over $15 million, or to elect portability for a surviving spouse. Due 9 months after the date of death (an automatic 6-month extension to file is available on Form 4768).
Optional: get help filing
Get a flat-fee quote to file the Oregon estate tax return
Tell us a little about the estate and a CPA or Enrolled Agent who prepares Oregon OR-706 returns will reply with a fixed price. Free, and no obligation.
Frequently asked questions
How much is Oregon estate tax on a $2 million estate?
About $101,000 on a $2,000,000 taxable estate, and about $205,000 on $3,000,000. That assumes a Oregon resident with everything in Oregon and no lifetime gifts. The taxable estate is what is left after debts, funeral and administration costs, and what goes to a spouse or charity.
Who files the Oregon estate tax return, and when is it due?
The executor (personal representative) files OR-706, due 12 months after the date of death. File Form OR-706 with the Oregon Department of Revenue within 12 months. Form OR-706-EXT gives an automatic 6-month extension to file, but not to pay.
Does the estate have to file if it owes no Oregon tax?
Oregon requires Form OR-706 when the gross estate is $1,000,000 or more, before any deductions, even if no tax is due.
Is there an Oregon inheritance tax?
No. Oregon has an estate tax, paid by the estate, not an inheritance tax. Heirs owe no Oregon tax on what they receive, although the estate's tax reduces what is left to share.
When is the Oregon estate tax due?
Within 12 months of death. Form OR-706-EXT gives an automatic 6-month extension to file, but the tax is still due at 12 months.
Are life insurance and retirement accounts part of the estate?
Yes. Retirement accounts count at their full balance, and life insurance counts if the person owned the policy or it paid the estate, even when a named beneficiary receives the money. Income tax on withdrawals from an inherited IRA is separate and is paid by the heir.
Will the estate owe federal estate tax as well?
Only if it is over $15,000,000 for 2026 deaths. Oregon's exemption is $1,000,000, so many estates owe Oregon tax and no federal tax. The Oregon tax paid is deductible on the federal return.
How accurate is this calculator?
It uses Oregon's official rate table for 2026 deaths. It assumes the person lived in Oregon with everything located there, and it uses the values you enter. The real return uses appraised values at the date of death and can include items it does not model, such as property in other states, state-only elections and credits for tax paid to other states.
Sources
This information is provided for educational purposes only and should not be considered legal or tax advice. Consult a qualified tax professional for guidance specific to your situation.