Does Oregon charge sales tax on cars?

Oregon has no general sales tax, so there is no traditional car sales tax. Instead, a 0.5 percent vehicle privilege tax applies to dealers selling new vehicles, and a matching 0.5 percent use tax applies to vehicles bought outside Oregon and brought in.

What is the Oregon vehicle privilege tax?

The privilege tax is 0.5 percent of the retail sales price on new vehicles sold by Oregon dealers. It is technically a tax on the dealer for the privilege of doing business, but dealers commonly pass it on to the buyer.

Do used or private-party car sales get taxed?

No. The 0.5 percent privilege and use taxes apply only to new vehicles with low odometer readings. A used car bought from a private seller in Oregon generally owes no privilege tax, only title and registration fees.

What is the use tax for out-of-state purchases?

If you buy a new vehicle outside Oregon and register it in Oregon, you owe a 0.5 percent use tax on the purchase price. This prevents buyers from avoiding the privilege tax by shopping across the state line.

Will I still pay title and registration?

Yes. Even though Oregon has no general sales tax, you still pay DMV title and registration fees, which are scaled by the vehicle's fuel economy. This calculator estimates those separately from the privilege or use tax.

Oregon Car Sales Tax Calculator

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Oregon is one of a handful of states with no general sales tax, so buying a car here is far cheaper at the register than in most states. The only car-purchase tax is a small 0.5 percent vehicle privilege or use tax on new vehicles. This calculator shows exactly when it applies and what you still owe in DMV fees.

How it works

The 0.5 percent tax depends on how and where you buy:

New vehicle, Oregon dealer      -> 0.5% vehicle privilege tax on price
New vehicle, bought out of state-> 0.5% use tax on price
Used or private-party sale      -> no privilege/use tax (DMV fees only)

There is no broad sales tax, so for most used and private sales the purchase-time tax is zero. You then add title and registration fees, which Oregon scales by the vehicle’s fuel economy.

Example

A 35,000 dollar new car from an Oregon dealer carries a 0.5 percent privilege tax of 175 dollars, commonly passed to the buyer, plus title and registration. A used car bought privately for the same price owes 0 dollars in privilege tax — only the DMV fees apply.

Notes

This estimate covers the 0.5 percent privilege and use taxes and approximate DMV fees. It does not cover dealer documentation fees, lien fees, or special vehicle classes, and the privilege tax applies only to qualifying new vehicles. Confirm details at oregon.gov/dor and oregon.gov/odot/dmv.