April 6, 2026 · Oregon STR State Tax Guide

Oregon Short-Term Rental Tax Guide for Airbnb Hosts (2025)

Oregon occupies a unique position in short-term rental taxation: as one of five U.S. states with no sales tax, there's no state-level sales tax on lodging. However, Oregon more than compensates with a high personal income tax (up to 9.9%, plus Portland-area surcharges that can push effective rates even higher), and county/city Transient Lodging Taxes (TLT) that apply at the local level.

Oregon's STR markets are diverse and strong: Bend is one of the Pacific Northwest's fastest-growing outdoor recreation destinations, Hood River is a world-class windsurfing and outdoor adventure hub, Cannon Beach is one of the most photographed beaches in America, and Portland offers a vibrant urban market — albeit one with strict primary-residence rules. This guide covers the full tax landscape for Oregon STR hosts.

Oregon STR Tax Overview

Oregon has no state sales tax, but counties and cities impose Transient Lodging Taxes (TLT). Oregon's income tax is the dominant state tax burden for STR hosts.

Oregon Transient Lodging Tax (TLT)

Oregon counties and cities each impose their own TLT on short-term lodging stays. These are separate from sales tax and apply specifically to transient accommodations (rentals under 30 days in most jurisdictions). Airbnb collects and remits TLT for most Oregon markets under its marketplace facilitator agreements with local governments.

Key TLT rates by market (state + county + city combined):

• Bend (Deschutes County): ~10.4% combined
• Cannon Beach: ~10–11% combined
• Hood River: ~9–10% combined
• Ashland: ~10–11% combined
• Portland (Multnomah County): ~11.5% combined

Even if Airbnb collects your TLT, you must register with your county or city to obtain a TLT license. Contact your local county assessor or city finance office for registration requirements.

Oregon State Income Tax

Oregon's income tax is among the highest in the U.S. at the upper brackets:

• 4.75% on first $18,400 (single) / $36,800 (joint)
• 6.75% on $18,401–$250,000 (single) / $36,801–$500,000 (joint)
• 8.75% on income above $250,000 (single) / $500,000 (joint)
• 9.9% on income above $125,000 (single) / $250,000 (joint) — top bracket

Portland-area residents additionally face the Metro 1% tax (on income above ~$200,000) and the Multnomah County Preschool for All surtax (1.5–3% on income above ~$125,000 single). These significantly increase effective rates for Portland-area property owners with substantial rental income.

Oregon STR Markets

Bend

Bend is Oregon's premier STR investment market. The city's year-round outdoor appeal — skiing at Mt. Bachelor, mountain biking, Deschutes River, and a vibrant brewery scene — drives consistent demand. ADRs of $200–$350/night for well-located properties. Deschutes County has STR permitting requirements; check current regulations with the county.

Cannon Beach

Cannon Beach is one of Oregon's most iconic coastal destinations, known for Haystack Rock, artists' galleries, and Pacific storm watching. Summer ADRs of $300–$500/night for beach-adjacent properties; strong fall and winter storm-watching tourism maintains off-season demand. Cannon Beach has STR regulations requiring city registration.

Hood River

Hood River is a world-class windsurfing and kiteboarding destination in the Columbia River Gorge, with growing appeal for mountain bikers, hikers, and wine tourists (Columbia Gorge AVA). Summer and fall dominate; ADRs of $200–$350/night for well-positioned properties.

Ashland

Ashland hosts the Oregon Shakespeare Festival (February–November), one of the largest regional theater festivals in the U.S. The festival creates predictable, pre-booked demand from theater tourists. ADRs of $150–$250/night during the festival season.

Key Deductions for Oregon STR Hosts

Pacific Northwest Environment Deductions

• Mold and moisture prevention: Oregon's wet climate makes mold remediation and moisture control a recurring expense; deductible as maintenance
• Storm and wind damage repairs: Pacific storms cause regular damage; repair costs are deductible
• Firewood and wood stove maintenance: Many Oregon vacation rentals feature wood stoves or fireplaces; wood, chimney cleaning, and stove maintenance are deductible
• Radon mitigation: Parts of Oregon have elevated radon; mitigation systems can be installed and depreciated

Recreation-Oriented Amenity Deductions

• Bikes, kayaks, paddleboards, and outdoor gear provided for guest use (5-year depreciation)
• Ski equipment storage and racks for winter rental properties
• Outdoor furniture and hot tubs (5–7 year depreciation)

Standard Rental Deductions

• Depreciation: 27.5-year residential schedule (Oregon conforms to federal)
• TLT paid (deductible as taxes/operating expenses)
• Property management fees
• Cleaning and turnover services
• Guest supplies and amenities
• Utilities proportional to rental use
• Oregon property taxes and mortgage interest (proportional to rental use)
• Insurance premiums
• Platform and marketing fees

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