If you’ve spent any time looking at homes in Portland, you’ve probably noticed something strange. You might see a beautifully renovated bungalow listed for $650,000 with a tax bill of $4,000, while the nearly identical house next door—listed for the same price—has a tax bill of $8,500.
It’s enough to make anyone’s head spin. But don't worry, there is a logic to the madness.
The Oregon property tax system is unique, complex, and occasionally frustrating, but once you understand the rules, it becomes surprisingly predictable. We aren't dealing with a simple percentage of your purchase price here. Instead, we have a system built on decades-old ballot measures that separate "market value" from "taxable value."
As we settle into early 2026, homeowners are keeping a close eye on their statements. With payment deadlines approaching this February and new levies on the horizon for late 2026, now is the perfect time to demystify exactly where your money goes when you’re living in Portland.
The Math: Measure 5 vs. Measure 50
To understand your bill, you have to look back at the 1990s. Two major constitutional amendments—Measure 5 and Measure 50—completely changed how taxes are calculated here. Think of them as the "Cap" and the "Limit."
Measure 50 (The Cap) changed the game by creating something called Maximum Assessed Value (MAV). In simple terms, this law caps the growth of your home's taxable value at 3% per year. Even if the Portland real estate market goes wild and your home’s market value doubles overnight, your assessed value generally can’t jump more than 3%. This is why long-time owners often pay significantly less than recent buyers of new construction—their "taxable value" has been capped for decades.
Measure 5 (The Limit) works differently. It sets a hard limit on the tax rate itself based on Real Market Value (what your home would sell for). It limits taxes for education to $5 per $1,000 of real market value, and general government taxes to $10 per $1,000.
So, what happens if the calculated tax rate is too high? That’s where Compression kicks in. If the local tax rates add up to more than those Measure 5 limits ($5 or $10), the tax bill gets "compressed"—meaning your bill is automatically reduced to fit under the limit.
The most important takeaway for a buyer is the difference between Assessed Value (AV) and Real Market Value (RMV). You are taxed on the lower of the two. In Portland's rising market, the Assessed Value is almost always lower, which is great news for your bank account.
Current Property Tax Rates & Typical Bills (2025-2026)
When you open your tax statement from Multnomah County, you aren't just paying "the county." You are actually funding a long list of local services. Your payment gets sliced up between the City of Portland, the School District, the Port of Portland, Metro, and various other districts.
Because of the complex math we just discussed, quoting a single "tax rate" is tricky. However, looking at the Effective Tax Rate gives you a much clearer picture of the cost of living in Portland.
For most established homes, the effective tax rate hovers around 0.90% to 1.0% of the home's market value. However, if you look at the rate applied to the assessed value, it looks much higher—often over $20 per $1,000.
Let’s look at a quick example for a typical median home in 2026:
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Real Market Value (RMV): $600,000 (What it would sell for)
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Assessed Value (AV): $300,000 (The capped taxable value)
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Approximate Bill: $6,000 to $7,000
In this scenario, you are paying about 1% of the home's real value. Keep in mind that your bill also includes specific voter-approved levies. On the 2025-2026 statements, this includes line items like the Children's Levy and the Historical Society levy. These "extra" voter-approved bonds are why your bill might go up more than 3% in a single year, even if your assessed value didn't.
Deadlines: When Are Portland Property Taxes Due?
If you are new to owning a home here, the payment schedule is strict. Multnomah County sends out tax statements in October, and you have a few options for how to pay.
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November 15: This is the big deadline. If you pay the full year's tax by this date, you get a 3% discount. It’s the best return on investment you’ll find, so most people try to hit this date.
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February 15: The second installment is due.
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May 15: The final installment is due.
Note for early 2026: Since February 15, 2026, falls on a Sunday and the following Monday is Presidents' Day, the actual deadline for this year's second installment is Tuesday, February 17, 2026.
If you choose the installment plan (paying in thirds), you lose that 3% discount, but you don't get charged interest as long as you pay by the due dates. If you miss a deadline, interest starts accruing immediately.
Exemptions & Deferrals: Can You Lower Your Bill?
While the system is rigid, there are programs designed to help specific groups manage their expenses. If you are moving to Portland and fall into one of these categories, it is worth looking into the paperwork early.
Senior & Disabled Deferral This is a state-run program that allows qualifying homeowners to defer their property taxes. The state pays the county for you, and a lien is placed on your home. You (or your heirs) pay back the taxes plus interest when the home is sold. For 2026, keep an eye on the Net Worth limit and the Real Market Value cap (which increased to $301,000, though there are exceptions if you've lived there for 5+ years).
Disabled Veteran Exemption Oregon offers a property tax exemption for veterans with a disability rating of 40% or more. This isn't a total exemption, but rather a reduction in your Assessed Value. For the 2025-2026 tax year, this knocks about $26,000 to $31,000 off your taxable value, depending on your disability status. It can save you a few hundred dollars a year.
HOLTE Program If you are looking at new construction, ask about the HOLTE program. This is a 10-year exemption on the structural improvements of a home. It has strict caps on the purchase price and buyer income, but if you qualify, you might only pay taxes on the land value for a decade.
Appeals If you think your home's Real Market Value is incorrect (i.e., the county thinks your home is worth $800k but you just bought it for $600k), you can appeal to the Board of Property Tax Appeals (BOPTA). The deadline is typically December 31. Since we are in February, that ship has sailed for the current tax year, but keep it in mind for next fall if values shift drastically.
Looking Ahead: The 2026 Parks Levy & Future Changes
When budgeting for housing expenses in Portland, you can't just look at today's bill; you have to look at what voters have recently approved.
In November 2025, Portland voters passed Measure 26-260, known as the Parks Levy. This measure is designed to fund the operations and maintenance of the city's parks and recreation centers. While we all love clean parks, it does come with a price tag.
Starting July 2026, the tax rate for this levy will increase from roughly $0.80 to about $1.40 per $1,000 of Assessed Value.
What does that mean for your wallet? If your home has an Assessed Value of $300,000, you can expect to pay about $180 more per year starting with your November 2026 tax bill. It’s a good reminder that while Measure 50 caps the value growth, voters can still increase the rate through temporary levies.
How to Look Up Your Portland Tax Bill
One of the best things about investing in Portland real estate is the transparency. You can look up the tax history of almost any property in seconds. You don't need a login or a subscription.
PortlandMaps.com This is the holy grail for local data. Just type in an address, click on "Assessor," and you’ll see the current tax bill, the breakdown of RMV vs. AV, and even permit history. It’s the first tool I recommend to anyone buying here.
MultcoPropTax.com If you want the official tax statement (the actual PDF bill), go here and use the "Guest Login." You can search by address or account number. This site also has a great "Tax Graph" feature that visually splits your bill into Education vs. General Government, which helps you see exactly where your dollars are going.
Frequently Asked Questions
What is the property tax rate in Portland, Oregon for 2026?
There isn't a single flat tax rate for all of Portland. Instead, your rate is a combination of City, County, and School District mill rates. Generally, the effective tax rate works out to be roughly 1.0% to 1.2% of a home's Real Market Value, though this varies by neighborhood.
How are property taxes calculated in Multnomah County?
Taxes are calculated based on your home's Assessed Value (AV), not necessarily its market price. Under Measure 50, your AV generally cannot increase more than 3% per year. Your final bill is the Assessed Value multiplied by the local tax rates, plus any bond measures approved by voters.
When are property taxes due in Portland?
The first installment (or full payment) is due November 15. The second installment is due February 15, and the third is due May 15. For 2026 specifically, the February deadline moves to Tuesday, February 17, because of the weekend and holiday.
Is there a property tax exemption for seniors in Portland?
Yes, but it is typically a deferral rather than a total exemption. The Oregon Senior & Disabled Deferral program allows qualifying seniors to delay paying taxes until the home is sold or the owner passes away. There are income and home value limits that apply.
Why did my Portland property taxes go up more than 3%?
While Measure 50 caps the growth of your Assessed Value at 3%, it does not cap your total bill at 3%. If voters approve new bonds (like school bonds or the recent Parks Levy), those charges are added on top of the permanent rate, causing your total bill to rise faster than the assessed value.
