Oregon Property Taxes Explained: Why Your Tax Bill Isn't Based on Market Value

Here's the thing nobody tells you when you buy a house in Oregon. Your property tax bill has almost nothing to do with what your home is worth today.

I get this question constantly, especially from buyers moving up from California or over from Washington. They look at a Eugene listing, see the taxes, and ask why the house next door with the same square footage pays way less. Fair question. The answer is a pair of ballot measures from the 1990s that still run the whole show.

Quick answer: How are Oregon property taxes different?
Oregon taxes your home on its assessed value, not its market value. Assessed value was locked to 1995 levels (minus 10%) by Measure 50 and can only grow 3% per year, no matter how fast home prices rise. Your bill is assessed value times your local tax rate, capped further by Measure 5. And unlike California, your taxes do not reset when you buy. The new owner simply inherits the existing assessed value.

Let's break down what that actually means for you.

The two laws behind every Oregon tax bill: Measure 5 and Measure 50

Oregon voters rewrote the property tax system twice in the 1990s. Those two measures are why our system works so differently from almost every other state.

Measure 5 (1990) put a ceiling on tax rates. Taxes for schools are capped at $5 per $1,000 of a home's real market value. Taxes for general government (cities, counties, fire districts, parks) are capped at $10 per $1,000. Voter-approved bonds for things like new schools sit outside those limits.

Measure 50 (1997) changed what gets taxed in the first place. It did three big things:

1. Reset every property's taxable value to its 1995-96 market value minus 10%.
2. Limited growth in that value to 3% per year.
3. Froze each taxing district's "permanent" tax rate. Going above it takes a voter-approved local option levy, which expires after up to five years for operations.

So nearly three decades later, your taxable value is still tied to a number set in the mid-90s, plus 3% a year. Home prices in Lane County have grown much faster than that, which is why most homes here are taxed on a value well below what they'd sell for.

Real market value vs. assessed value: the three numbers on your tax statement

Open any Lane County tax statement and you'll see three values. This is where most people get lost, so here's the plain version.

The formula is simple: Assessed Value x your area's combined tax rate = your bill, then trimmed if it breaks the Measure 5 limits.

For most homes in Eugene, Springfield, and Cottage Grove, the MAV is lower than market value, so MAV becomes the assessed value. That's the number that matters.

One catch: the 3% isn't the whole story. Your assessed value grows up to 3% a year. Your tax bill can grow more than 3% if voters approve new bonds or local option levies. For example, Lane County's total taxes certified for 2025-26 rose about 3.49% while countywide market value only rose about 1.42% (Lane County).

New construction and remodels work differently. When you build a new home or add significant square footage, the assessor doesn't use 1995 values. Instead, they apply a changed property ratio (the average ratio of assessed value to market value for that property class in the county) to the new value. That's why brand-new homes can carry higher taxes than older homes on the same street. If you're thinking about a big addition, it's worth knowing that the new space gets added to your assessed value.

What is compression in Oregon property taxes?

Compression is Measure 5 stepping in. If the school taxes on your home add up to more than $5 per $1,000 of its real market value, or the general government taxes add up to more than $10 per $1,000, the bill gets cut down to the limit. You'll see it on your statement as a reduction.

Compression mostly hits homes where the assessed value is close to the market value. That happens when a home's market value dropped, or with newer homes assessed using the changed property ratio. For most long-held homes in Lane County, the gap between assessed and market value is wide enough that compression never kicks in.

The League of Oregon Cities gives a clean example: two homes both worth $200,000, one with an assessed value of $155,000 and one at $190,000. The second home runs over the Measure 5 limits and gets $87 compressed off its bill. The first one doesn't (League of Oregon Cities).

Why two identical houses on the same street can have very different taxes

This is the one that surprises people most. Three things cause it:

• The 1995 starting point. Assessed values were locked to whatever the assessor had on file in 1995-96. Some homes had been reappraised recently back then. Others hadn't. That uneven start has been compounding at 3% a year ever since.
• Neighborhoods grew at different speeds. Areas where prices took off fell further behind the 3% cap, so homes there pay less tax relative to their value. Areas with slower growth stayed closer to market.
• Remodels and additions. A home that added a second story or a big ADU got new value added through the changed property ratio. The untouched house next door didn't.

The takeaway: you can't estimate taxes from price. Two Eugene homes listed at the same price can carry very different tax bills. Always look at the actual tax amount for that specific property.

Do property taxes go up when you buy a house in Oregon?

No. Oregon does not reassess a home when it sells. The assessed value and the tax bill stay with the property, not the owner. Whatever the seller was paying is very close to what you'll pay next year, plus up to 3% growth in assessed value and any new voter-approved levies.

This is a big deal if you're coming from California, where a sale resets the tax base to the purchase price. Here, the current tax bill on the listing is a reliable preview of yours.

At closing, property taxes are prorated. Oregon's tax year runs July 1 to June 30, and bills come out in October. So depending on when you close, you may be reimbursing the seller for taxes they already paid, or getting a credit for taxes they haven't. Your escrow officer handles the math on the settlement statement.

Lane County property taxes: dates, discounts, and what changes by area

Your total tax rate depends on which taxing districts your home sits in: the city, the school district, fire, parks, library, community college, and any bonds or levies voters approved. A home inside Eugene city limits, one in Springfield, one in Cottage Grove, and one out on the McKenzie all have different combinations, so the rate is different too. You can look up any property's levy code and tax history on the Lane County Assessment and Taxation site.

The yearly calendar:

Pay early and save. Lane County gives a 3% discount if you pay the full year by the November due date, or a 2% discount on two-thirds paid by then. Pay in thirds and there's no discount. Late payments are charged 1.333% interest per month (Lane County Tax Payment Information). If your taxes are paid through your mortgage escrow account, your lender usually pays in November to grab the 3%.

For context, Lane County certified $746 million in total property taxes for 2025-26 across about 183,000 tax accounts (Lane County).

Oregon vs. California vs. Washington property taxes

A lot of my relocation buyers are coming from one of these two states, so here's how it stacks up.

The big one for California buyers: you won't get the reset shock. If you buy a home in Eugene that the seller has owned for 20 years, you pick up their assessed value. In California you'd start over at today's price.

For Washington buyers: Oregon has no sales tax but does have a state income tax, so look at the full picture, not just the property tax line.

What this means if you're buying or selling in Lane County

If you're buying:

• Look at the actual tax amount on the listing, not an estimate based on price. It's the best predictor of your bill.
• Budget for some growth. Assessed value can rise up to 3% a year, and new bonds or levies can add more.
• Buying new construction? Ask what the current taxes reflect. If the home was finished after January 1, the bill may only cover the lot, and next year's could jump once the house is added.
• Planning a big remodel or ADU? Expect the added value to show up on your assessment.

If you're selling:

• A low tax bill relative to price is a selling point, especially for California buyers. Make sure it shows up in your listing details.
• Taxes are prorated at closing, so you'll get credited for anything you've prepaid past your closing date.

Money-saving programs worth knowing:

• Senior and Disabled Property Tax Deferral. The state pays your county taxes and places a lien on the home, with 6% simple interest, repaid when the home sells or ownership changes. For 2026, household income must be under $70,000. Apply through the county assessor January 1 through April 15 (Oregon Department of Revenue).
• Disabled Veteran or Surviving Spouse Exemption. Veterans with a 40% or higher disability rating can take a chunk off their home's assessed value. For the 2026-27 tax year that's $32,512 for a service-connected disability certified by the VA or a branch of the military, or $27,092 for other qualifying 40% disabilities. The amounts go up 3% each year. Surviving spouses and registered domestic partners who haven't remarried can qualify too. File with the county assessor by April 1. VA-certified veterans usually don't need to refile each year, but you do need a new claim if you move (Oregon Department of Revenue).
• Appeals. You can appeal to the Property Value Appeals Board by December 31. Heads up: lowering your real market value only lowers your bill if that value drops below your assessed value. For most homes, it won't change the tax.

Oregon property tax FAQ

Are Oregon property taxes based on market value?

No. They're based on assessed value, which comes from 1995-96 market value minus 10%, grown no more than 3% a year. Market value only matters for the Measure 5 limit check.

How much can Oregon property taxes go up each year?

Assessed value can rise up to 3% a year. Your bill can rise more than 3% if voters approve new bonds or local option levies, or if you add on to your home.

Do Oregon property taxes reset when a house sells?

No. The assessed value stays with the property. A buyer usually pays about what the seller paid.

What is maximum assessed value (MAV) in Oregon?

It's your home's Measure 50 value: the 1995-96 baseline plus up to 3% growth per year. Your assessed value is the lower of MAV and real market value.

What is property tax compression in Oregon?

It's the reduction applied when taxes on a home go over Measure 5 limits of $5 per $1,000 of market value for schools or $10 per $1,000 for general government.

When are Lane County property taxes due?

November 15, February 15, and May 15, moving to the next business day if the 15th falls on a weekend. Paying in full by the November date earns a 3% discount.

Why are taxes so different on similar homes in Eugene?

Because assessed values trace back to 1995 records, neighborhoods grew at different speeds, and remodels add value. Price alone won't tell you the tax.

Have questions about a specific home?

Property taxes are one of those things that look simple on a listing and get complicated fast. If you're eyeing a home in Eugene, Springfield, Cottage Grove, or anywhere in Lane County, I'm happy to pull the tax history and walk you through what to expect. Call or text me at 541-543-3610 or send me a message here on the site.

I'm a real estate agent, not a tax advisor or attorney. For questions about your own tax situation, check with the Lane County Assessor or a tax professional.