Buying a home in Portland comes with a big question: what will your property taxes look like after you close? You’re not alone if you’ve seen a seller’s bill and wondered why yours might be higher. Property taxes in Multnomah County follow Oregon rules that treat new buyers differently than long‑time owners, so it pays to understand how the system works. In this guide, you’ll learn how taxes are calculated, why reassessment happens, how to estimate your bill, and what steps to take before and after you buy. Let’s dive in.
Portland property tax basics
Measure 5 and Measure 50 explained
Oregon’s property tax system is shaped by two key voter measures. Measure 5 set limits on certain school and local tax rates and shifted some school funding to the state. Measure 50 created two values for every property: Real Market Value and Assessed Value, and it generally limits how quickly the Assessed Value can grow.
For you, this means the number the county uses to compute your tax bill (Assessed Value) often grows more slowly than market prices. That slow growth can change when a home sells or when there is qualifying new construction.
RMV vs. AV: the two values that matter
- Real Market Value (RMV) is the county’s estimate of current market value.
- Assessed Value (AV) is the taxable value used to calculate your bill.
Under Measure 50, AV is usually less than or equal to RMV because its growth is capped most years. A change in ownership or qualifying new construction typically resets AV toward current market value.
What changes when you buy
A sale commonly triggers reassessment. In practice, your new Assessed Value is often reset toward your purchase price or the county’s updated RMV. If the previous owner had a much lower AV, your taxes may rise. The size of the increase depends on the gap between the prior AV and the property’s current market value.
How your Portland tax bill is calculated
The basic formula
Your annual property tax is:
Estimated tax = Assessed Value × Total tax rate
Rates are usually listed per $1,000 of assessed value. If your combined rate is shown per $1,000, you can calculate it as:
Estimated tax = Estimated AV × (Total tax rate / 1,000)
Who sets your rate
Your total rate is the sum of rates from overlapping jurisdictions. That can include Multnomah County, the City of Portland, school districts, special districts, Metro, library, local option levies, and bond debt. Voter‑approved levies and bonds show up as separate lines on your bill and can increase what you pay in future years if new measures pass.
Urban renewal and tax distribution
Some Portland neighborhoods are inside an urban renewal area. Urban renewal uses tax increment financing that diverts some growth in property taxes to the renewal agency. It does not increase your statutory tax rate by itself. It can affect which services receive incremental tax dollars over time.
Estimate your taxes before you make an offer
You can build a reasonable estimate with a few steps:
- Get last year’s bill. Ask the seller for the most recent annual statement or locate it through the county’s property lookup.
- Find the parcel’s values. Look up current Assessed Value and RMV on the Multnomah County assessor site.
- Identify the total rate. On the same parcel page, note the combined tax rate and the levy detail.
- Reset AV for a resale. If you are buying at current market price, assume the Assessed Value will be reset toward your sale price or updated RMV.
- Run the math. Use the symbolized calculation: Estimated tax = Estimated AV × (Total tax rate / 1,000).
- Check voter measures. Review recent or upcoming levies and bonds that might change future bills for properties in that district.
A quick example using variables: if your expected new AV is $X and your combined rate is Y per $1,000, your annual bill is roughly X × (Y ÷ 1,000).
Timing, due dates, and closing prorations
Assessment timeline and lien date
Oregon values property as of a standard lien or assessment date, commonly January 1 of the tax year. A transfer of ownership typically triggers reassessment to RMV, with the effective timing based on when the sale occurs relative to that assessment date and county procedures.
When taxes are due
Oregon bills annually and often collects in two installments. Common due dates in many counties are November 15 and May 15, with penalties and interest applied after due dates. Confirm current Multnomah County due dates and penalties on the county Tax Collector page because administration can vary.
Who pays what at closing
Property taxes are usually prorated between buyer and seller on the closing statement. The seller pays for their period of ownership, and you pay for the remainder of the tax year. Because bills are issued annually and can be paid in installments, the actual cash flow at closing depends on timing and any payments already made. Your escrow or title company will calculate the prorations and show them on your final statement.
Appeals and tax relief options
If you think your value is too high
You can appeal your assessed value through Multnomah County’s formal process. Appeals must be filed by the published deadline after assessment notices are mailed. If you plan to appeal, gather market evidence such as comparable sales and an appraisal, and follow the county’s instructions and timeline.
Exemptions, credits, and deferrals
Oregon offers relief for eligible homeowners, including seniors, disabled homeowners, low‑income households, and veterans. There is also a state property tax deferral program for qualifying seniors and disabled homeowners that can delay payment of taxes under set conditions. Program eligibility rules, income or asset thresholds, and application procedures can change. Check Multnomah County and the Oregon Department of Revenue for current details and deadlines. Oregon also provides certain income tax credits related to property taxes and rent for qualifying residents. Review current rules with the Oregon Department of Revenue.
New construction and improvements
Qualifying new construction or major improvements can increase your Assessed Value for the portion of value added by the improvement. The county typically adds that increase to AV separately from the capped growth that applies to the existing base AV. If you plan renovations, factor the potential change in AV into your long‑term tax planning.
Buyer checklist: what to do and when
Before you make an offer
- Request the seller’s most recent tax bill and several years of history.
- Look up the parcel’s AV, RMV, combined tax rate, and levy details on the county site.
- Check whether the property sits in a special district or urban renewal area.
- Budget using a reassessed AV closer to your anticipated purchase price rather than the seller’s prior AV.
During escrow
- Confirm tax prorations in your closing statement and verify any seller payments already made.
- Ask your lender how they will fund the tax escrow at closing if they require one.
- If you suspect an overvaluation after reassessment, gather comps and note appeal deadlines right away.
After closing
- Watch for your assessment notice and tax bill and confirm your mailing address with the county.
- Apply promptly for any relief or deferral programs you may be eligible for.
- Monitor local ballots for levies or bonds that could affect your rate in future years.
Putting it all together
If you are comparing homes in different Portland neighborhoods, expect each property’s tax picture to be unique. Your final bill depends on where the home sits, which districts overlap it, whether it is in an urban renewal area, and how far the prior Assessed Value was from today’s market value. Planning for reassessment and checking the combined rate before you write an offer will help you avoid surprises.
If you want help pulling county data, estimating a realistic first‑year bill, or understanding how improvements might affect your taxes, our team is here. Reach out to Peak Realty for local guidance tailored to your home search.
FAQs
Will my Portland property taxes go up after I buy?
- Most buyers see an increase because a change in ownership commonly resets Assessed Value toward current market value, which raises the taxable base if the prior AV was lower.
How do I find the total tax rate for a specific Portland address?
- Use the county property lookup to view the parcel’s combined tax rate and levy breakdown, along with current RMV and AV.
How does urban renewal affect my tax bill in Portland?
- Urban renewal does not raise your statutory tax rate; it captures incremental growth in taxes for the renewal agency, which changes how tax dollars are distributed.
What happens with taxes if I close near a due date?
- Taxes are usually prorated between buyer and seller on the closing statement. Because bills are annual and often paid in installments, escrow will adjust who pays what based on timing and any payments already made.
Can I appeal if I think the county assessed my home too high?
- Yes. Multnomah County provides a formal appeal process with strict deadlines. Gather comparable sales, an appraisal if possible, and follow the county’s procedures.
Are there programs that can reduce or defer my property taxes?
- Oregon offers relief for eligible homeowners, including seniors, disabled homeowners, low‑income residents, and veterans, and a deferral program for qualifying seniors and disabled homeowners. Check current rules and deadlines with the county and the Oregon Department of Revenue.
