Car Sales Tax in Oregon
Oregon does not charge sales tax on vehicles purchased in the state.
Written by Sarah Gray
Edited by Melanie Krieps Mergen
Oregon
does not charge sales tax on motor vehicles purchased in the state—but dealerships pay 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 state sales tax on in-state vehicle purchases.
- Buyers will be responsible for their new car’s sticker price plus expenses like title and registration fees.
- Oregon is one of only 5 states in the US that do not charge state sales tax on in-state vehicle purchases.
- Buyers will be responsible for their new car’s sticker price plus expenses like title and registration fees.
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 make a car purchase in another state: You will be charged a vehicle use tax of .005% to register and title your vehicle in Oregon.
Keep in mind: Oregon vehicle dealers 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?
Since sales tax is not charged for vehicle purchases in Oregon, your trade-in is not taxed either.
Oregon car sales tax exemptions
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 car’s purchase price in Oregon, you will be responsible for other fees usually associated with buying a new car. These can include title,
vehicle 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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