Buyer Resource Center › Before You Buy › A Homebuyer's Quick Guide to Property Taxes
Property taxes are one of the biggest parts of your monthly housing cost, and they work very differently in Oregon and Washington. Knowing how they're calculated, when they're due, and which exemptions you may qualify for can save you real money, especially if you're a disabled or senior veteran.
6 Things to Know About Property Taxes
How Oregon Property Taxes Work
Oregon taxes are based on a home's assessed value, which is often lower than its market value. Under Measure 50, assessed value generally can't grow more than 3 percent a year, and it doesn't reset when a home sells. That means two similar homes on the same street can have very different tax bills.
How Washington Property Taxes Work
Washington taxes are based on assessed value, which tracks closer to market value and is updated regularly. Tax rates vary by levy area, and voter approved levies for schools and services can change your bill from year to year.
When Taxes Are Due
Oregon tax statements arrive in October, and taxes can be paid in installments or in full by November 15, with a discount for paying the full amount on time. Washington taxes are typically due in two halves, by April 30 and October 31.
How Your Escrow Account Pays Them
Most VA and conventional loans include an escrow account. Part of your monthly payment goes into it, and your lender pays your property taxes and insurance when they're due. If taxes go up, your monthly payment adjusts.
Disabled Veteran Exemptions
Oregon offers a property tax exemption for qualifying disabled veterans and surviving spouses, which reduces the taxable value of your home. Washington offers an exemption program that includes veterans with a qualifying service connected disability rating, based on income.
Senior and Low Income Programs
Oregon offers a property tax deferral for qualifying homeowners age 62 and older or with disabilities. Washington offers an exemption and deferral for qualifying homeowners age 61 and older or retired due to disability. Income limits apply to both.
The bottom line: Property taxes can vary widely from one home to the next, even on the same street. Look at the actual tax bill before you make an offer, factor it into your monthly budget, and apply for every exemption you qualify for after closing. I'll help you compare the numbers on any home you're considering.
Frequently Asked Questions
How are property taxes calculated in Oregon?
They're based on a home's assessed value, which under Measure 50 generally can't increase more than 3 percent a year and doesn't reset when the home sells. The tax rate depends on where the home is located.
Do property taxes go up when I buy a home in Oregon?
Generally no. Oregon's assessed value doesn't reset to the sale price, so your taxes usually continue from the seller's bill and grow by about 3 percent a year, plus any new voter approved levies.
When are property taxes due in Washington?
Typically in two halves, due by April 30 and October 31. If you have an escrow account, your lender pays them for you.
Do disabled veterans pay property taxes in Oregon?
Qualifying disabled veterans and surviving spouses can receive an exemption that reduces the taxable value of their home. You must apply with your county assessor.
Do disabled veterans get a property tax break in Washington?
Yes. Washington's exemption program includes veterans with a qualifying service connected disability rating, subject to income limits. Apply with your county assessor.
Is Oregon or Washington cheaper for taxes?
It depends on your income, spending, and the specific home. Oregon has a state income tax but no sales tax, while Washington has no state income tax but does have sales tax. Property taxes vary by location in both states.
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Meet Your Veteran Realtor
Troy Doty, Principal Broker
Troy Doty is a Principal Broker with Northwest Realty Source in Portland, with 25 years in real estate and over 1,000 homes sold across the Portland metro and SW Washington. As a Marine Corps veteran, Troy has a true passion for helping Portland veterans and active duty military families buy and sell homes, whether you're PCSing in, transitioning out, buying your first home, investing in a duplex, triplex, or fourplex, or right sizing later in life.
Schedule a Call or Video Meeting ➜ More About Troy ➜ Free Veteran Buyer E-BookPrefer to call or email? 503.997.4169 · troy@nwrealtysource.com
Troy Doty, Principal Broker, Northwest Realty Source. Licensed in Oregon and Washington. ABR®, MRP, and SRES® are credentials of the National Association of REALTORS® and its affiliates. CIAS™ is a designation of U.S. Realty Training. Content adapted in part from ABR® consumer resources. This page is general information, not legal, tax, or lending advice.
