Oregon Estate Tax
U.S. State Estate & Inheritance Tax

Oregon Estate Tax Guide Oregon Estate Tax Guide

Oregon Estate Tax Guide

Last updated: 23 Oct 2025 • Author: Alexander Foelsche CPA (US), WP (DE), RE (CH)

Oregon Estate Tax — Overview

This page distills the Oregon estate tax under ORS Chapter 118: the fixed $1,000,000 threshold, resident vs. nonresident rules, the Natural Resource Credit, deadlines, core forms (OR-706, OR-706-V), and practical planning pointers. Use the quicklinks below to jump to detailed guides, cases, and our calculator.

At a glance. Oregon starts from federal estate tax concepts but applies a fixed $1,000,000 threshold (no inflation indexing), a state rate table (up to ~16%), and no state portability. Nonresidents are taxed only on Oregon-situs real and tangible property. Filing and payment are generally due 9 months after death. ORS ch. 118

Key facts

Who is taxed?

  • Residents: Worldwide estate with Oregon adjustments and threshold.
  • Nonresidents: Only Oregon-situs real property & tangibles (intangibles generally follow domicile unless business situs in OR).
  • No separate Oregon gift tax; lifetime gifts can still affect federal basis/step-up planning.

Threshold & rates

  • Threshold: $1,000,000 (fixed).
  • Graduated table: approximate top rate ~16% on the Oregon taxable estate above $1M.
  • Natural Resource Credit (farm/forest/business) may significantly reduce liability.

Deadlines

  • OR-706 & payment: due in 9 months.
  • Filing extension: typically up to +6 months (does not extend time to pay).
  • Hardship/Installments possible; interest accrues.

Residents vs. Nonresidents

Residents (domiciled in Oregon)

  • Begin with federal schedules (Form 706) and apply Oregon threshold/credits.
  • No state portability. Consider Oregon QTIP to defer for a surviving spouse.
  • Model liquidity early; many estates owe OR tax even with no federal liability.

Nonresidents (Oregon-situs only)

  • Tax base limited to real property and tangible personal property located in Oregon.
  • Allocate debts/expenses consistently to Oregon assets per OR-706 instructions.
  • See the Nonresident Guide for examples and apportionment workflow.

Core forms

Oregon (DOR)

  • OR-706 — Estate Tax Return (+ instructions).
  • OR-706-V — Payment voucher (for checks; e-pay available).
  • Schedule OR-706-NRC — Natural Resource Credit (if eligible).
  • Oregon Power of Attorney (optional).

Use the current-year versions and submission addresses on the Oregon DOR website.

Federal attachments

  • Form 706 (or 706-NA) pages/schedules and Forms 712 as applicable.
  • Appraisals, deeds/records, will/trust, letters of authority, deduction support.
  • No federal filing? Include consistent pro-forma federal schedules.

Natural Resource Credit (NRC)

  • Potentially offsets tax on qualifying farm, forest, or natural-resource business property.
  • Ownership/use tests (pre-death) and post-death holding/use requirements apply.
  • File the NRC schedule with supporting documentation and appraisals.

Evaluate eligibility early; documentation drives outcomes.

Deadlines & extensions (summary)

ItemWhen dueWhereNotes
OR-706 (return) 9 months after death Oregon DOR Payment also due; interest after due date.
Extension to file typically +6 months DOR (per instructions) Attach IRS 4768 approval if obtained; does not extend time to pay.
Tentative/extension payment by month 9 e-Pay or OR-706-V Reduces interest/penalties; claim on OR-706.
Installments / hardship by application DOR Available in limited cases; interest accrues. Coordinate with federal §6166/§6161 as relevant.

Filing workflow

  1. Confirm domicile; identify Oregon-situs assets and allocable deductions.
  2. Order appraisals; assemble federal schedules (706/706-NA, 712).
  3. Model the $1M threshold and consider NRC eligibility.
  4. Plan cash for month-9 payment; make tentative payment if needed.
  5. Prepare and file OR-706; retain proof of payments/attachments.
More resources: Forms & Deadlines · Nonresident Guide · Planning · Cases · Calculator

FAQs

Does Oregon have portability?

No. Oregon does not allow state portability. Consider QTIP or other marital planning to defer tax.

Are brokerage accounts taxed for nonresidents?

Generally no; intangibles are usually sourced to domicile unless there is an Oregon business situs.

References

  1. ORS Chapter 118 — Oregon estate tax framework; resident/nonresident; threshold, rates, credits.
  2. Oregon Dept. of Revenue — OR-706 return & instructions; OR-706-V payment; NRC schedule/guidance.
  3. OAR 150-118 — Administrative rules (elections, computation, procedures).
  4. IRS Form 706/706-NA & Instructions — federal base, valuation, marital/QTIP, §6166 references.