Oregon car tax
Oregon has no yearly car tax and no sales tax. Owners pay registration fees tiered by fuel economy, plus county fees in some counties. New cars bought from an Oregon dealer pay a 0.5% vehicle privilege tax.
No yearly car tax; only registration fees.
Buying a car in Oregon: one-time tax
Oregon vehicle privilege tax (new vehicles) — 0.5%. Trade-ins don't reduce the tax.
Applies only to new vehicles: 0.5% of the retail price for an Oregon dealer sale, or 0.5% use tax for a new car bought from an out-of-state dealer. Used cars are not taxed.
Registration and due dates
Registration costs about $126–$156 for two years, tiered by MPG, plus county registration fees in some counties. A title costs $101 or more.
No yearly car tax. Registration renews every two years.
Cut what your car costs in Oregon
Car tax is set by your town, but your loan and insurance aren't. Refinancing a car loan at a lower rate often saves more each year than the tax itself.
Questions
Is there sales tax on cars in Oregon?
No general sales tax. New cars pay a 0.5% vehicle privilege tax.
Does Oregon tax cars every year?
No. Only registration fees, tiered by fuel economy.
Can I deduct Oregon car taxes on my federal return?
Generally no. Oregon has no yearly value-based car tax, and flat registration fees cannot be deducted as personal property tax.
Sources
Last checked October 14, 2026. Rates are for passenger cars owned by individuals; leased, business and specialty vehicles can differ. Confirm with your tax collector or commissioner of the revenue.