Oregon's taxable income is closely connected to federal taxable income. The state personal income tax rates range from 4.75% to 9.9% of taxable income, but Oregon is one of only five states in the nation that levies no sales or use tax. Since Oregon does not have a sales tax, the state government’s primary source of revenue is that income tax. The state also does not collect a motor vehicle excise tax, a business and occupations tax, or direct levies on intangible property such as stocks, bonds, or securities.
The state’s property tax applies to privately owned real estate such as land, homes, farms, stores, factories, warehouses and commercial offices. Personal property, held for the use and enjoyment of individuals, is exempt from taxation. However, personal property such as machinery, equipment, and supplies used to produce income, or with the potential of producing income, is subject to taxation.