Unpacking the Impacts of Oregon’s Estate Tax Reform

Ever considered how where you live can significantly affect your tax liabilities, especially when it comes to estate taxes? Let’s dive into Oregon’s estate tax reform and its implications. Oregon is one of the 12 states imposing an estate tax, and its threshold is the lowest in the nation, at $1 million. This impacts not just the wealthiest but also many upper middle-income families whose assets have appreciated due to inflation and favorable market conditions. The state’s estate tax is progressive, with 10 brackets and a top rate of 16 percent, lower than Washington and Hawaii, but higher than Connecticut and Maine. Surprisingly, Oregon’s estate tax does not contribute significantly to the state’s budget, generating less than 2 percent of general fund revenues. There’s a flip side, too. The state loses out on income and other taxes when individuals relocate to avoid the estate tax. As we approach the 2025 session, several bills have been proposed, sparking an active debate on estate tax reform in Oregon. So, if you’re planning your estate, consider how your state’s tax laws might affect you. It might be time to seek professional advice!

Source: taxfoundation.org