For businesses operating in Portland or serving customers in surrounding areas, it’s important to understand the state’s sales tax regulations. Unlike many other states, Oregon does not impose a sales tax, which makes it unique in terms of compliance requirements for businesses. This guide will help you navigate Oregon’s sales tax landscape, explain the key considerations for businesses, and clarify why Portland businesses are exempt from sales tax collection.
Does Portland Have Sales Tax?
Portland, Oregon, does not impose a sales tax at the state, county, or city level. This means that businesses in Portland are not required to collect sales tax from customers, making it one of the few tax-free areas in the United States.
- State Sales Tax in Oregon: 0%
- County Sales Tax: 0%
- City Sales Tax in Portland: 0%
As a result, the total sales tax rate in Portland is 0.00%.
Understanding Sales Tax in Oregon
Oregon’s tax policy is unique in that it does not have a general sales tax. This applies statewide, so no matter where your business is located in Oregon, including Portland, you won’t need to charge sales tax on goods or services sold.
- No sales tax at the state, county, or city level
- Businesses do not need to collect, remit, or file sales tax returns
- Non-nexus and out-of-state sellers are also exempt from Oregon sales tax
Sales Tax Rates in Portland: A Quick Breakdown
Since there are no sales taxes in Portland, the rates for all top 10 zip codes in Portland are the same:
| Zip Code | State Sales Tax | County Sales Tax | City Sales Tax | Special Sales Tax |
|---|---|---|---|---|
| 97202 | 0.00% | 0.00% | 0.00% | 0.00% |
| 97203 | 0.00% | 0.00% | 0.00% | 0.00% |
| 97206 | 0.00% | 0.00% | 0.00% | 0.00% |
| 97211 | 0.00% | 0.00% | 0.00% | 0.00% |
| 97217 | 0.00% | 0.00% | 0.00% | 0.00% |
| 97219 | 0.00% | 0.00% | 0.00% | 0.00% |
| 97230 | 0.00% | 0.00% | 0.00% | 0.00% |
| 97236 | 0.00% | 0.00% | 0.00% | 0.00% |
| 97266 | 0.00% | 0.00% | 0.00% | 0.00% |
Special Tax Considerations for Portland Businesses
Even though there is no sales tax in Portland, there are other types of taxes that could be relevant for businesses:
Non-Nexus and Out-of-State Sellers
For businesses without a physical presence (non-nexus sellers) or those operating from outside of Oregon, there are no state, county, or city taxes that need to be paid. This applies to out-of-state sellers and marketplace facilitators as well.
| Type of Sales Tax | Rate |
|---|---|
| Non-Nexus Sellers – State Use Tax | 0.00% |
| Non-Nexus Sellers – County Use Tax | 0.00% |
| Non-Nexus Sellers – City Use Tax | 0.00% |
| Out-of-State Sellers – State Use Tax | 0.00% |
| Out-of-State Sellers – County Use Tax | 0.00% |
| Marketplace Facilitators – State Sales Tax | 0.00% |
| Marketplace Facilitators – City Sales Tax | 0.00% |
Conclusion: Simplifying Sales Tax in Oregon
Oregon doesn’t have a sales tax, which makes things easier for businesses here. But if you’re selling to customers in other states, managing sales tax can get tricky.
Commenda’s Sales Tax Automation platform helps make this easy! It automatically calculates, files, and sends your sales taxes for you. You can track your taxes in real-time, get reminders when you need to register in new states, and connect everything to your existing systems.
Commenda takes the stress out of sales tax. Book a demo today to see how it can help your business!