Oregon has no statewide sales tax on most purchases

Oregon is one of five states with no sales tax. When you buy something at a store or online, you do not pay a sales tax at checkout — not on clothes, groceries, electronics, or most other goods. This applies whether you shop in person or have items shipped to you.

The main exception is services. Oregon taxes some services — like repairs, haircuts, and dry cleaning — at rates that vary by county. A few counties also tax prepared food. But the core rule is straightforward: goods are not taxed, and most services are not either.

Key Takeaways

  • Oregon charges no sales tax on physical goods, including clothing, groceries, and electronics, whether you buy them in a store or online.
  • Some services — repairs, haircuts, dry cleaning, and landscaping — are taxed in Oregon, with rates varying by county from 0% to 10%.
  • Prepared food is taxed in some counties but not others; groceries and unprepared food are never taxed.
  • If you order something from out of state, you may owe Oregon use tax, which is the same rate as sales tax would be in the seller's location.

Which services are taxed in Oregon

Oregon taxes certain services under what the state calls the Service and Other Activities Tax. The taxed services include repairs (appliances, cars, phones), personal services (haircuts, massages, tattoos), cleaning services (dry cleaning, carpet cleaning, house cleaning), and landscaping. The tax rate depends on which county you live in and ranges from 0% to 10%.

Not all counties tax all services the same way. Some counties have chosen not to tax certain services at all. Before you pay for a service, ask the business what tax will be added — they are required to tell you. The tax is collected at the point of sale, just like a sales tax would be.

Prepared food and groceries

Groceries — raw ingredients you cook at home — are never taxed in Oregon. This includes meat, produce, dairy, bread, and pantry staples. However, prepared food (food ready to eat) is taxed in some Oregon counties and not in others. Prepared food means restaurant meals, deli items, hot food from a grocery store, and food from food carts.

The tax rate on prepared food varies by county, just like service taxes do. If you are buying a sandwich from a deli counter or eating at a restaurant, ask whether tax will be added. Groceries you take home to cook are always tax-free.

Online purchases and use tax

When you order something online from a seller outside Oregon, you typically do not pay sales tax at checkout because Oregon has no sales tax. However, Oregon law says you owe use tax on those purchases — a tax equal to what you would have paid if you had bought the item in Oregon from a local seller.

In practice, most people do not pay use tax on individual online purchases. It is a tax you are supposed to report yourself on your Oregon income tax return. If you run a business and buy inventory or equipment online, use tax is more likely to be tracked. For personal purchases, the state does not typically pursue individual shoppers, but the tax is technically owed.

How Oregon's tax system compares to other states

Five states have no sales tax: Oregon, Montana, New Hampshire, Delaware, and Alaska. (Alaska taxes some goods but not others.) This makes Oregon attractive to shoppers, but it also means Oregon funds its government differently — through income tax, property tax, and the service taxes described above.

If you move to Oregon from a state with sales tax, you will notice the difference at checkout. However, you will also pay Oregon income tax, which may be higher than in your previous state. The total tax burden depends on how much you earn, spend, and own.

What happens if you buy something from another state

If you order from a company based in another state, the seller may charge you sales tax based on their state's rules, not Oregon's. For example, if you order from a California company, they might charge California sales tax even though you live in Oregon. This is because the seller collects tax based on where they are located or where they ship to, depending on state law.

If a seller charges you sales tax on an Oregon purchase, that is between you and the seller — Oregon does not receive that money. You cannot deduct it from your Oregon use tax. Keep your receipts if you think you have been charged incorrectly, and contact the seller to ask why tax was added.

Resale certificates and business purchases

If you own a business and buy goods to resell, you can provide the seller with an Oregon Resale Certificate to avoid paying tax on those purchases. The certificate tells the seller you are buying for resale, not for your own use. You can get a resale certificate from the Oregon Department of Revenue if you have a business license.

This applies only to goods you will resell. If you buy supplies or services for your business (like office furniture or cleaning), you may still owe tax depending on what you are buying. Talk to a tax professional or the Department of Revenue if you are unsure whether a purchase qualifies for resale exemption.

Frequently Asked Questions

Do I pay sales tax when I buy clothes in Oregon?

No. Clothing is not taxed in Oregon. This applies to all apparel — shirts, pants, shoes, hats, and accessories — whether you buy them in a store or online from an Oregon retailer.

Is tax added to restaurant meals in Oregon?

It depends on which county you are in. Some Oregon counties tax prepared food and restaurant meals; others do not. Ask your server or the cashier before you order, or check your receipt after you pay.

What if an online seller charged me sales tax on an Oregon purchase?

Contact the seller and ask why tax was added. If they are based outside Oregon, they may have charged their home state's tax by mistake. Ask for a refund. Keep your receipt and the seller's response in case you need to dispute the charge with your credit card company.

Do I have to pay use tax on everything I buy online?

Oregon law says you owe use tax on online purchases, but in practice it is reported on your income tax return as a voluntary payment. The state does not typically pursue individual shoppers for use tax on personal purchases. If you run a business, use tax is more closely tracked.

Are there any goods that are taxed in Oregon?

No. Physical goods are not taxed in Oregon. Only certain services and prepared food are taxed, and only in some counties. If you are buying an item to take home, it will not have sales tax added.