Oregon Estate Tax Nonresident Guide
Last updated: 23 Oct 2025 • Author: Alexander Foelsche CPA (US), WP (DE), RE (CH)
Oregon Estate Tax — Nonresident Guide
For estates of decedents domiciled outside Oregon that own Oregon-situs assets. This page explains who must file, what is taxable, how to limit the tax to Oregon assets, the $1,000,000 threshold, deadlines & extensions, payment workflow, Natural Resource Credit pointers, plus checklists and examples. ORS ch. 118 • OR-706
Do you need to file as a nonresident?
What counts as Oregon-situs property?
| Asset type | Taxed by Oregon? | Notes |
|---|---|---|
| Real property located in Oregon | Yes | Residences, farms, timber/forest tracts, commercial property. |
| Tangible personal property situated in Oregon | Yes | Boats, vehicles, equipment, artwork, inventory physically in Oregon. |
| Intangibles (stock, bonds, cash, brokerage) | Generally no | Usually sourced to domicile unless an Oregon business situs is established. |
| Entity interests (LLC/partnership/corp) | Generally no | Treated as intangibles; watch for facts that create business situs in Oregon. |
How Oregon limits the tax to the Oregon portion
- Oregon-taxable estate starts from federal concepts but includes only Oregon-situs assets for a nonresident, less deductions properly allocable to those assets.
- Allocation: Debts/expenses should be allocated consistently; follow OR-706 instructions for apportionment across Oregon vs. non-Oregon assets.
- Threshold: Model the fixed $1,000,000 threshold—Oregon tax can apply even if no federal estate tax is due.
- Credits: Consider Oregon credits where eligible (e.g., Natural Resource Credit for qualifying farm/forest/business property).
Bottom line: compute the Oregon portion accurately; non-Oregon assets of a nonresident are outside the state base.
Deadlines, extensions & payment
| Item | Timing | Notes |
|---|---|---|
| OR-706 due | 9 months after death | Tax payment is also due by 9 months; interest accrues thereafter. |
| Extension to file | Typically up to +6 months | Follow OR-706 instructions. If a federal 4768 is approved, include it; a filing extension does not extend time to pay. |
| Paying the tax | By 9 months | Pay via Oregon e-payment options or with OR-706-V (voucher); claim extension/tentative payments on the return. |
| Installments / hardship | By application | In limited hardship scenarios, payment arrangements may be available; interest applies. Coordinate with any federal §6166/§6161 relief. |
Core forms (nonresident focus)
Oregon forms
- OR-706 — Oregon Estate Tax Return (attach federal schedules where applicable).
- OR-706-V — Payment voucher for extensions/returns if paying by check.
- Schedule OR-706-NRC — Natural Resource Credit (if farm/forest/qualifying business property may qualify).
- Power of Attorney — Oregon DOR authorization (optional) for representatives.
See the current OR-706 instructions for addresses, e-pay links, and full attachment requirements.
Federal attachments
- Form 706 (or 706-NA for nonresident aliens) pages/schedules and any Form 712 (life insurance).
- Deeds, appraisals, proof of Oregon asset location; will/trust; letters of authority.
If no federal return is required, prepare consistent federal-style schedules per OR-706 instructions.
Quick examples
Example — Bend rental home to children
Nonresident decedent owns an Oregon rental house and out-of-state investments. The Oregon return includes the rental (and allocable deductions) only; non-Oregon accounts are excluded from the Oregon base.
Example — Combine & equipment stored in Oregon
Farm equipment kept in Oregon is tangible personal property situated in Oregon and is included for the Oregon computation, even if the rest of the estate is elsewhere. Consider Natural Resource Credit if eligibility criteria can be met.
Nonresident filing checklist
Documents
- Death certificate; letters of appointment (domicile state and any Oregon ancillary).
- List of Oregon-situs assets with appraisals and location evidence.
- Federal schedules (706/706-NA), will/trusts, beneficiary designations.
Computations & timing
- Compute the Oregon portion on OR-706; allocate deductions consistently.
- Model the $1,000,000 threshold; evaluate Natural Resource Credit early if applicable.
- Target the 9-month payment date; if needed, request a filing extension (payment still due).
FAQs — Nonresident estates
Are nonresidents taxed on brokerage accounts?
Generally no. Intangibles (brokerage, stock, cash) of a nonresident are usually not Oregon-situs unless they acquire a business situs in Oregon.
Do I have to file if there’s no Oregon property?
Usually not. If the decedent had no Oregon-situs assets, an Oregon estate tax return is generally not required. Verify titles and location facts carefully.
Can the Natural Resource Credit help a nonresident estate?
Possibly. If qualifying farm/forest/business property in Oregon meets ownership/use and post-death requirements, the Natural Resource Credit may reduce Oregon tax attributable to that property.
What if a federal estate return isn’t required?
You may still need an Oregon filing. Use federal-style schedules as pro-forma support and make a filing extension if needed. Payment remains due at 9 months.
References
- ORS Chapter 118 — Oregon Estate Tax: residency, situs, threshold, rates, credits.
- OAR 150-118 — Oregon Administrative Rules for estate tax (apportionment, procedures).
- Oregon DOR — OR-706 return & instructions; OR-706-V payment voucher; Natural Resource Credit schedule and guidance.
- IRS Form 706/706-NA & Instructions — federal base, valuation, marital/QTIP references used in Oregon filings.