Oregon Vehicle Sales Tax & Fees
When it comes to purchasing a vehicle, you have to be aware of all of the costs. That includes paying the state sales tax that is required in your state. No matter which state you intend to purchase a vehicle in, the state sales tax must be factored in.
So what is the state sales tax for vehicle purchases in Oregon?
Here we will explain any associated sales tax and other DMV costs with purchasing a vehicle in the Beaver State.
How Much Is the Car Sales Tax in Oregon?
Currently, the state of Oregon does not have a state sales tax. That includes vehicle purchases as well.
That makes Oregon one of five states with no state sales tax: Oregon, Alaska, Delaware, Montana, and New Hampshire.
The 0.5% Tax Oregon Buyers Still Pay
No sales tax does not mean no tax. Since January 1, 2018, Oregon has charged a vehicle privilege tax of one-half of 1 percent on new vehicles sold by Oregon dealers. It is legally the dealer’s tax, but dealers are allowed to collect it from you at the point of sale, and in practice they do. On a $40,000 car that is $200.
A vehicle is subject to it only if it meets every one of these conditions:
- Bought from a dealer, or from someone who would be required to register as a dealer in Oregon
- Purchased on or after January 1, 2018
- Has 7,500 miles or fewer on the odometer, or was sold with a manufacturer’s certificate of origin
- Has a gross vehicle weight rating of 26,000 pounds or less
- Has never been registered or titled in Oregon, other than as a dealer demonstrator
So a genuinely used car is not caught by it. A new one almost always is.
Buying out of state does not dodge it. Oregon charges a matching 0.5% vehicle use tax on cars bought outside Oregon and brought in. You have to pay it within 30 days of purchase, and the DMV will not title or register the vehicle until you do. Some out-of-state dealers collect it for you and show it as a line on the bill of sale; if yours does not, paying it is on you.
Do I Have to Pay Sales Tax on a Used Car?
In the state of Oregon, you do not have to pay state sales tax on any used vehicle.
Which City or County Has the Highest Tax? Which Has the Lowest?
Currently, there is no sales tax throughout the state of Oregon.
Car Sales Tax for Trade-Ins in Oregon
Since there is no state sales tax in the state of Oregon, you don’t have to worry about paying taxes on any trade-in.
For instance, if you purchase a vehicle for $40,000 and have a trade-in worth $7,500, then your state sales tax for the entire vehicle purchase will still be $0.
Car Sales Tax for Private Sales in Oregon
You don’t have to pay a state sales tax for any private vehicle sales. However, there may be some DMV fees that will apply.
Tax on Rebates & Dealer Incentives
The chances are that you may get some rebates and dealer incentives when you purchase your vehicle at a dealer. Since Oregon does not have a state sales tax, you don’t have to worry about paying taxes on any rebates or dealer incentives.
As an example, let’s say that you purchase a new vehicle for $45,000, and you get a $2,000 rebate. You don’t have to pay any state sales tax on the $2,000 rebate.
DMV/State Fees
In addition to dealership fees, there are DMV and state fees that you will have to pay. Here, we will take a look at the three most common fees associated with vehicle purchase in the state of Oregon:
Title: The title fee covers the cost of creating or transferring a title of a vehicle. In the state of Oregon, there is the current fee list for titles:
- 0 to 19 Combined MPG: $101
- 20 to 39 Combined MPG: $106
- 40+ Combined MPG: $116
- All-Electric: $192
- Heavy Vehicles over 26,000 lbs: $90
- Salvage Title: $27
(all vehicles have a Gross Vehicle Weight of less than 26,000 pounds)
Registration: Oregon registers passenger vehicles for two years at a time, and the fee is tiered by fuel economy, so a thirsty car is cheaper to register than an efficient one. These are the two-year amounts:
- 0 to 19 Combined MPG: $126
- 20 to 39 Combined MPG: $136
- 40+ Combined MPG: $216
- All-Electric: $376
- Enrolled in OReGO: $86, whatever the vehicle
- Motorcycle or Moped: $88
- County Registration Fee, Multnomah County: $112
- County Registration Fee, Washington County or Clackamas County: $60
- New Plates: $26, or $13 for a one-plate vehicle. Moving plates to another vehicle is $30 and replacements are $12
If you drive an EV or a hybrid, look at OReGO before you renew. It is Oregon’s pay-per-mile road charge programme, and enrolling drops your registration to $86 for two years. Against $376 for an all-electric car or $216 for a 40+ MPG one, that is a saving of $290 or $130, though you then pay per mile driven, so it suits lower-mileage drivers best.
Permit: In addition to title and registration fees, the state of Oregon charges permit fees for specific types of vehicles – within the state – for a limited period of time. Here’s a look at some of the most common permit fees.
- Light Vehicle Trip Permit – 21 Days: $33
- Heavy Motor Vehicle Trip Permit – 10 Days: $43
- Heavy Trailer Trip Permit – 10 Days: $10
- Recreational Vehicle Trip Permit – 1 to 10 Days: $33
- Registered Vehicle Trip Permit – 10 Days: $7.50
Dealership Fees
While there is no state sales tax in the state of Oregon, there are associated fees that you may have to pay as part of your vehicle purchase. These fees are associated with dealership sales:
- Documentation Fee: The fee a dealership adds to cover its paperwork. Oregon caps it in statute at $250 where the dealer uses an integrator and $200 where it does not. ORS 822.043 also states plainly that you may negotiate the amount, so treat those figures as a ceiling rather than a price.
- Advertising Fee: The advertising fee is the fee that a dealership will add to the cost of the vehicle related to the ad cost of selling the vehicle. This fee is pretty much an unnecessary markup and can usually be negotiated down.
- Delivery Fee: The delivery fee is associated with the cost of delivering your vehicle to the dealership from the manufacturer. You may be able to negotiate the delivery fee down.
How to Calculate Oregon Sales Tax on a Car
There is no sales tax to calculate. On a $40,000 vehicle the Oregon sales tax is $0.
What you should work out instead is the 0.5% privilege tax, if the car is new. On that same $40,000 vehicle that is $200, and your dealer is allowed to pass it to you. Multiply the price by 0.005.
When Sales Tax is Exempt in Oregon
Since there is no state sales tax in Oregon, there are no exemptions needed.
EV Rebates & Incentives
Timing matters more than the amount here. The Oregon Clean Vehicle Rebate Program runs out of money and shuts, then reopens for a window. The 2026 window is August 25 to November 4, 2026. A car bought or leased while the programme is suspended is not eligible at all, so the purchase date decides whether you get anything.
There are two tracks. The Standard Rebate is open to anyone, needs a battery of at least 10 kWh and a base MSRP under $50,000:
- New battery electric vehicle: $2,000
- New plug-in hybrid: $1,500
The Charge Ahead Rebate is for low and moderate income households, below 400% of the federal poverty guideline, and is worth far more. It also covers used vehicles:
- New battery electric vehicle: $7,500
- New plug-in hybrid: $5,000
If you might qualify for Charge Ahead, prequalify before you buy rather than after.
Learn more about the Oregon EV tax and utility incentives here.
Tax information and rates are subject to change, please be sure to verify with your local DMV.
