Property Taxes Explained: Oregon vs. Washington Real Estate

When buyers compare the cost of living between Oregon and Washington, property taxes are often the most confusing topic. The two states handle property assessments and tax levies in completely different ways. If you are trying to calculate your future monthly mortgage payment, you must understand how your state calculates its taxes!

Oregon: Predictability is King (Measure 50) In Oregon, property taxes are governed by "Measure 50." This law separates your home's "Real Market Value" (what the home would actually sell for) from its "Assessed Value" (the number the county uses to calculate your taxes).

• The Benefit: Under Measure 50, your Assessed Value generally cannot increase by more than 3% per year, regardless of how crazy the housing market gets. This makes long-term budgeting incredibly predictable for Oregon homeowners.

Washington: Market-Driven Levies Washington does not have a 3% cap on assessed values. Your property taxes are calculated using a "Millage Rate" based on the county's budgetary needs, multiplied by your home's actual market value.

• The Reality: While the total amount of money a taxing district can collect is capped, the share you pay fluctuates. If your Washington neighborhood becomes a massive hotspot and property values surge, your property tax bill can take a noticeable jump the following year.

The Bottom Line While Oregon homeowners have more predictability with their property taxes, they still have to contend with high state income taxes. Washington homeowners might see more fluctuation in their property tax bills, but they get to keep 100% of their state income tax!

Are you trying to figure out your true buying power? We can help you estimate exactly what your property taxes will look like in your desired neighborhoods.

Call us today to start a financially sound home search!

Call: (503) 300-6614