Oregon Property Tax Law Changes 2026: What Homeowners Need to Know

Updated March 2026

Key Takeaway

Oregon's Measure 50 (1997) capped assessed values at 1995 levels with 3% annual growth, creating a permanent gap between assessed value and market value. This means many Oregon homes are taxed on values far below market value. The Senior Property Tax Deferral is an interest-free loan for qualifying seniors 62+.

Oregon Property Tax Snapshot: 2026

Median home value: $338,800
Average annual tax: $3,286
Effective tax rate: 0.97%
Assessment ratio: 100% of market value
Reassessment cycle: annual

Measure 50: The 3% Cap from 1995

Oregon's Measure 50 (1997) is one of the most restrictive property tax caps in the nation:

Assessed values were rolled back to 1995 levels minus 10%
Annual increases capped at 3% per year from that base
New construction is assessed at the ratio of assessed-to-real-market-value in the area (the "changed property ratio")

As a result, many long-held Oregon properties have assessed values 40-60% below market value. New purchases are assessed using the changed property ratio, not market value directly.

Real Market Value vs. Assessed Value

Oregon tracks two values:

Real Market Value (RMV): The county's estimate of market value
Assessed Value (AV): The Measure 50 capped value (usually much lower)

You pay taxes on the lower of the two. If your RMV drops below your AV (rare but possible in declining markets), your AV temporarily drops to match. This is your appeal opportunity.

Senior Property Tax Deferral

Oregon's Senior Deferral is unusually generous:

Age 62+ (or disabled)
Income under approximately $48,500
The state pays your property taxes
Interest rate: 6% (lower than many states)
Repaid when the property is sold or transferred

Measure 5: Rate Limits

Oregon's Measure 5 (1990) limits property tax rates to:

$5 per $1,000 of RMV for education
$10 per $1,000 of RMV for general government
$15 per $1,000 total

If combined tax rates exceed these limits, they are "compressed" proportionally. This is another layer of protection beyond Measure 50.

Check Your 2026 Oregon Assessment

See if you're over-assessed based on current comparable sales.

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Oregon Appeal Process

Filing deadline: December 31 (or January 14 for late-mailed notices)
File with: Board of Property Tax Appeals
Evidence needed: Comparable sales, property condition photos, record corrections

2026 Action Checklist

Review your assessment notice when it arrives
Verify all exemptions are applied (homestead, senior, veteran)
Compare your assessed value to recent comparable sales
File your appeal by December 31 (or January 14 for late-mailed notices) if over-assessed
Check your property record for errors (square footage, features, classification)

Get Your 2026 Oregon Evidence Packet

Comparable sales, filing guide, and cover letter. Ready in minutes.