Car Sales Tax in Oregon
Oregon does not charge sales tax on vehicles purchased in the state.
Written by Sarah Gray
Reviewed by Jessica Barrett
Oregon does not charge sales tax on vehicles purchased in the state. However, Oregon does charge dealerships a .005% vehicle privilege tax to sell vehicles and a .005% vehicle use tax on any vehicle purchased outside of Oregon but registered and titled in the state.
Oregon is one of only 5 states in the US that do not charge sales tax on vehicle purchases, but that does not mean buyers will only be responsible for their new car’s sticker price.
To make sure you have all the information you need before you head to the dealership,
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How much is the car sales tax rate in Oregon?
Oregon does not charge sales tax on new vehicles purchased in the state.
If you’re an Oregon resident, and you choose to purchase a vehicle in another state, you will be charged a vehicle use tax of .005% to register and title your vehicle in Oregon.
Oregon vehicle dealerships are also charged a .005% vehicle privilege tax, which is often passed on to the buyer as part of their documentation fees.
How are car trade-ins taxed in Oregon?
They’re not. Since sales tax is not charged for vehicle purchases in Oregon, your trade-in is not taxed either.
MORE: Oregon gas tax
How to calculate sales tax on a car in Oregon
Calculating sales tax on a vehicle purchase in Oregon is easy—because there isn’t any. Your car dealer will likely add their privilege tax to your documentation fees, but aside from that, you’ll see no added taxes on your vehicle purchase.
Key Takeaway There is no sales tax on vehicles purchased in Oregon.
Exemptions from Oregon car sales tax
Oregon residents are automatically exempt from sales tax on vehicle purchases, but they may be subject to use taxes on vehicles purchased outside the state. The only exemption from vehicle use tax is for vehicle sales in which the seller takes a resale certificate from a purchaser who is also a car dealer.
How to estimate Oregon tax, title, and registration fees
While you won’t have to pay sales tax on your vehicle purchase in Oregon, you will be responsible for other fees usually associated with buying a new car. These can include title, registration, plate transfer, and documentation fees.
Here’s a rundown of the additional costs associated with buying a car in Oregon:
Cost | Average cost |
|---|---|
Sales | 0% |
Registration fee | $126-$316 |
Title fee | $101-$192 |
Plate transfer | $6 |
Documentation fee | Maximum of $75 for paper processing and $115 for online processing |
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* checking your rate won’t affect your credit score
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MORE: Is car insurance tax deductible?
How to find affordable car insurance in Oregon
Oregon residents save a lot of money by not having to pay car sales taxes, but they still have to pay for car insurance. But don’t worry,
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FAQ
How much is sales tax on a used car in Oregon?
There is no sales tax on vehicle purchases in Oregon.
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