Oregon’s Tax Year Basics
Oregon’s property tax year runs July 1 through June 30, but taxes aren’t due until November 15. This timing is important because your closing date will determine who owes what—and whether you’ll be writing a check to the seller, or they’ll be crediting you money back.

If You Close Between November and June
During this time, the seller has already paid taxes for the full year. At closing, you’ll need to reimburse them for the portion covering your ownership.
Example: If you close on March 1, you’ll owe the seller about four months of taxes (March 1–June 30).

If You Close Between July and August
Here, the tables turn—the seller will owe you money for taxes from July 1 to your closing date.
Example: If you close August 1, you’ll receive a credit for roughly one month of taxes (July 1–July 31).

The Tricky Period: September 1 to October 15
This is where things get odd. During this window, taxes are a lien on the property, but the exact amount isn’t yet determined. Lenders require that taxes be paid (or held in escrow) even if you don’t plan to include them in your monthly mortgage.
The title company will typically “hold and pay” these taxes for you. Because the exact bill isn’t known, they’ll hold 110% to 115% of last year’s taxes. Any extra will be refunded once the actual bill is paid. Expect a holdback fee between $50 and $100 for this service.

Don’t Forget About Tax Reserves
Prorated taxes aren’t the whole story—if your mortgage includes taxes in your monthly payment, your lender will also collect tax reserves at closing. The amount depends on your closing date.
Your lender needs 12 full months of taxes in your escrow account by October, so they’ll collect enough months at closing to make that happen.
Example: If you close on March 15, your first payment is May 1. The lender will collect 7 months of reserves at closing since only 5 months remain before taxes are due.

The Bottom Line
Except for loans closing in September through mid-October, most buyers will end up paying the equivalent of about 10 months’ worth of property taxes at closing when you combine prorations and reserves.

Veteran Tip
If you’re using a VA loan, remember that VA buyers often have lower upfront costs compared to conventional financing—but property taxes still apply the same way. Understanding the timing can help you avoid surprises and budget more effectively when it’s time to close on your Oregon home.