Oregon Property Taxes - Measure 5 50

Oregon property taxes are not simply your home's market value multiplied by a rate. Because of two voter-passed constitutional measures — Measure 5 (1990) and Measure 50 (1997) — your tax is calculated on a separate, slower-growing number called Assessed Value, not on what your home would sell for today. Measure 5 caps the tax rate (at $5 per $1,000 of Real Market Value for schools and $10 per $1,000 for general government). Measure 50 limits how fast your taxable value can rise — generally no more than 3% per year. As of 2026, the median effective property tax rate in Portland and Multnomah County runs around 1% of a home's real market value, though it varies meaningfully by neighborhood. Here is how the system actually works before you buy.

How Do Oregon Property Taxes Work?

Most states tax property on its current market value: assess what the home is worth, apply a rate, send a bill. Oregon does not work that way.

Oregon decouples two numbers for every property:

• Real Market Value (RMV) — the county assessor's estimate of what the property would sell for.

• Maximum Assessed Value (MAV) — a capped, slow-growing value introduced by Measure 50.

Your tax is calculated on the Assessed Value (AV), which is the lower of those two numbers. In most rising markets, MAV is the lower figure, so your tax is based on the capped value — not on what your home would actually fetch on the open market. The county then applies the combined tax rates for your specific levy code area (schools, county, city, fire, bonds, and special districts), subject to the Measure 5 limits.

That is the whole system in one sentence: a capped taxable value, times a rate that itself is capped, with the lower of two values winning.

What Are Measure 5 And Measure 50?

These are the two constitutional amendments that define property taxation in Oregon. They do different jobs.

Measure Year What It Does Measure 5 1990 Caps the property tax rate: $5 per $1,000 of Real Market Value for schools and $10 per $1,000 for general government. When local rates exceed those caps, a process called "compression" automatically reduces the bill. Measure 50 1997 Caps the taxable value. It created Maximum Assessed Value (MAV) — initially rolled back to 90% of each property's 1995–96 value — and limits MAV growth to no more than 3% per year.

Think of it as two separate ceilings. Measure 5 limits the rate. Measure 50 limits the value the rate is applied to. Together they keep Oregon property tax bills from tracking the full swing of the housing market, which is why a homeowner's bill can rise slowly even when home prices climb sharply.

What's The Difference Between Real Market Value And Maximum Assessed Value?

This is the distinction that confuses most buyers, so it is worth slowing down on.

• Real Market Value (RMV) is the assessor's estimate of what your property would sell for on the open market as of the assessment date. It moves up and down with the market.

• Maximum Assessed Value (MAV) is an artificial, capped figure that, in normal years, grows by only 3% annually regardless of how fast RMV climbs.

• Assessed Value (AV) — the number your tax is actually calculated on — is the lower of the RMV or the MAV.

In a typical Portland market where home values have risen faster than 3% a year for long stretches, MAV sits well below RMV. So most homeowners are taxed on the capped MAV, not on the higher market value. The longer someone has owned a home through a rising market, the wider that gap tends to be.

A quick illustration of the principle (figures are illustrative, not a specific property):

Value Type Example Figure Role In Your Bill Real Market Value (RMV) $600,000 What it could sell for; sets the Measure 5 caps Maximum Assessed Value (MAV) $380,000 Capped value, grows ~3%/yr Assessed Value (AV) $380,000 (the lower one) What your tax is actually calculated on

In that example, the homeowner is taxed on $380,000 even though the home is worth $600,000 — because AV is the lower of the two values. Confirm the real figures for any specific property on your county assessor's records.

Why Your Property Tax Bill Isn't Market Value Times A Rate

If you take a Portland home's price and multiply it by a single "rate," you will almost always get the wrong number. Here is why.

1. The rate is applied to Assessed Value, not market value. Because AV (usually the capped MAV) is lower than the sale price, the math starts from a smaller base.

2. Measure 5's caps can trigger compression. When the combined local rates for schools or general government exceed the $5 and $10 per $1,000 of RMV limits, the bill is automatically reduced ("compressed") to stay within the caps. That can lower what you actually owe below the stated rates.

3. MAV resets on certain events. New construction, major additions, partitions, and some other changes can cause the assessor to recalculate MAV — so a renovated or newly built home may carry a higher taxable value than a comparable untouched one.

4. Rates vary by levy code area. Two homes a few blocks apart can sit in different tax code areas with different school, bond, and special-district levies, producing different bills.

The practical takeaway: the seller's current tax bill reflects their MAV and their levy code — not necessarily what you will pay. It is a useful data point, not a guarantee.

What Are Typical Effective Property Tax Rates In Portland?

The "effective rate" is the most useful number for buyers because it expresses your annual tax as a percentage of the home's real market value — which is the language buyers actually think in.

As of 2026, the median effective property tax rate in Portland and Multnomah County runs in the neighborhood of 1% of real market value (recent county-level data puts the Multnomah County median around 1.07% and Portland around 1.08%). That figure varies widely by location — different ZIP codes and levy code areas can run noticeably higher or lower depending on local school levies, bonds, and special districts.

Note that this effective rate is not the same as the "tax rate" printed on a tax statement. Statement rates are quoted in dollars per $1,000 of Assessed Value and can exceed $20 per $1,000 — but because AV is lower than market value, the bill as a share of market value lands much closer to 1%. Always treat any single rate as an estimate and verify the current figure with the county assessor for the specific property and year.

How Do Property Taxes Change When You Buy?

This surprises a lot of out-of-state buyers, especially anyone coming from a state like California where a sale resets the assessment.

In Oregon, a sale does not reset the Maximum Assessed Value. Buying a home does not, by itself, "uncap" the property or rebase its taxes to the purchase price. The MAV continues on its roughly 3%-per-year track regardless of what you paid. This is different from states with acquisition-value systems where your new price becomes the new taxable basis.

A few things can change your taxable value after you buy:

• New construction, additions, or major improvements — remodels and square-footage changes can prompt the assessor to add value and recalculate MAV.

• Subdividing or combining lots (partitions) — these can trigger a reassessment.

• Loss of an exemption or special assessment — for example, certain exemptions don't transfer with ownership.

If you buy an unchanged home and make no major improvements, your taxes will generally continue rising at roughly the 3% annual MAV cap — not jump to match your purchase price. Verify the property's current AV, RMV, and MAV, and ask the assessor whether any recent improvements have triggered (or will trigger) a recalculation.

What Buyers Should Check

Before you write an offer, run down this short list so the tax line in your budget is accurate rather than a guess.

Check Why It Matters The property's current AV, RMV, and MAV Tells you what the tax is calculated on and how big the gap to market value is. Available on the county assessor's records. Whether recent improvements were made New construction or additions can have raised MAV — so a flipped or renovated home may carry higher taxes than its neighbor. The levy code area / tax code Determines which school, bond, and special-district levies apply — the source of bill-to-bill variation across town. Pending bonds or local levies Voter-approved bonds sit outside the Measure 5 operating caps and can add to future bills. How your lender escrows taxes Most monthly payments include 1/12 of the annual tax; an underestimate at closing can mean an escrow shortfall later.

For the rest of the up-front math, see our breakdown of closing costs for Oregon buyers and sellers, and for how taxes fit into your monthly budget, our guide to the cost of living in Portland in 2026.

Frequently Asked Questions

How Are Property Taxes Calculated In Oregon?

Your tax is based on Assessed Value (AV), which is the lower of your home's Real Market Value or its Maximum Assessed Value. The county applies the combined tax rates for your levy code area to that AV, subject to Measure 5's caps of $5 per $1,000 of RMV for schools and $10 per $1,000 for general government. It is not simply market value times a single rate.

What Is The Difference Between Real Market Value And Assessed Value In Oregon?

Real Market Value (RMV) is the assessor's estimate of what your home would sell for. Assessed Value (AV) — the figure your tax is actually based on — is the lower of RMV or your Maximum Assessed Value (MAV), the capped value created by Measure 50 that generally grows no more than 3% per year. In a rising market, AV is usually well below RMV.

Do Oregon Property Taxes Reset When You Buy A House?

No. Buying a home does not reset the Maximum Assessed Value to your purchase price. The MAV continues on its roughly 3%-per-year track regardless of what you paid, unlike acquisition-value states such as California. Major improvements or new construction, however, can cause the assessor to recalculate it.

What Is Compression Under Measure 5?

Compression is the automatic reduction that kicks in when the combined local tax rates for schools or general government exceed Measure 5's caps ($5 and $10 per $1,000 of Real Market Value). When that happens, the county reduces — "compresses" — the bill so it stays within the limits, which can lower what you actually owe.

What Is The Property Tax Rate In Portland?

As of 2026, the median effective property tax rate in Portland and Multnomah County is roughly 1% of a home's real market value (recent county data puts it near 1.07–1.08%), though it varies by ZIP code and levy area. The dollars-per-$1,000 rate on a tax statement is higher, but because it applies to the lower Assessed Value, the bill as a share of market value lands close to 1%. Confirm the current figure with the county assessor.

Why Is My Neighbor's Tax Bill Different From Mine?

Two homes of similar market value can have very different bills because each has its own Maximum Assessed Value (tied to how long it has been owned and whether it has been improved) and may sit in a different levy code area with different school, bond, and special-district levies.

Talk It Through With Own It Northwest

Property taxes are one of the most misunderstood numbers in an Oregon home purchase — and one of the easiest to budget wrong if you assume the seller's bill is your bill. Own It Northwest is Ross Seligman's Portland-based team at Real Broker, serving buyers and sellers across the Portland metro and SW Washington. To pull a property's actual assessed value and levy code before you write an offer, call (503) 449-4022 or contact Own It Northwest.