Car Loan Calculator
How Oregon taxes car purchases
- State vehicle tax rate
- 0.5%
- Trade-in lowers the tax
- No
- Tax cap
- None
- Source
- Official source, checked 2026-10-05
These are the rules for a new car bought from a dealer. Used-car and private-sale rules can differ. How we check this data.
Oregon charges 0.5% at the state level. Vehicle privilege tax on new vehicles only (7,500 miles or fewer). No general sales tax. That rate is higher than 3 states and lower than 47 states. County and city taxes may add to it, so check your local rate and enter the total in the calculator.
What to know in Oregon
Oregon has no general sales tax, but new vehicles pay a 0.5% vehicle privilege tax: $175 on a $35,000 car. It applies only to new vehicles with 7,500 miles or fewer, so a used car bought in Oregon usually carries no state tax at all.
Rebates reduce the taxable price but trade-ins don't. If you buy a new car outside Oregon, you owe the matching 0.5% vehicle use tax instead, due within 30 days of purchase.
Does Oregon tax your trade-in?
Yes. Oregon taxes the full price of the new car even when you trade one in. On a $35,000 car you'd pay $175.00 in state tax with or without a $10,000 trade-in. Because trading in gives you no tax break here, selling your old car privately is often worth more.
Example: a car loan in Oregon
A $35,000 car with $5,000 down, $1,500 in fees, and a 60-month loan at 6.5% APR ($175.00 state tax, rolled into the loan):
- Monthly payment: $619.76
- Amount financed: $31,675
- Total interest: $5,510
- Total cost of the car: $42,185
Change any number in the calculator above to see your own figures.
Rebates and fees
In Oregon, a rebate lowers the taxable price, and the calculator takes it off before figuring the tax. Title, registration and dealer documentation fees vary, so ask for an itemized out-the-door price and put the fee total in the calculator.
Other states
States with similar vehicle tax rates:
- Alaska 0%
- Montana 0%
- New Hampshire 0%
- Alabama 2%
- Colorado 2.9%