Portland, Oregon Property Taxes Among Highest in U.S. – Rising Again in 2023

portland oregon property taxes increasing

In November 2022, Portland voters chose to renew a handful of property tax-supported measures that will benefit schools, protect natural areas and enhance emergency fire services. Voters also approved two new bonds that will be financed by property taxes. These recently passed measures, in addition to Portland’s tax structure for properties, will lead to higher taxes for home and business owners in 2023.

Portland, Oregon Property Tax Rates Among the Highest in the Country and are Still Rising

It is hard to get effective statistics on property taxes across the country as they are modified by so many different bonds and levies, in addition to set formulas. Typically, only research firms compiling reports can make accurate comparisons. According to a study conducted in 2020, Portland, Oregon is in the top 5 cities in the U.S. for high property tax rates. Apparently since then, Portland has moved up on the list of cities with the highest property tax rates – to fourth in the country at 2.62%, up from #5. Also, according to a 2020 report by Willamette Weekly, Multnomah County has the highest income tax for high income earners in the U.S.

What Drives High Portland Property Taxes?

What contributes to predictable tax increases for property owners in Portland? Every year, the value of a home is determined for tax purposes by starting with its value in 1995 and adding 3% per year to arrive at its current assessed value. This can sound like good news, since the real estate market in Portland has increased more than 3% on average each year since 1995, meaning property taxes are based on lower values than their actual market value. However, the renewal and passage of new bonds and levies at a percentage of assessed property value keeps taxes high and leads to yearly increases for homeowners. Check out this Q&A from Oregon Live for an in-depth look at how property taxes are calculated in Portland.

Measures Increasing Portland 2023 Property Tax Rates

Looking ahead to 2023, here are the measures passed in the November general election that will maintain or further increase home property taxes in the Portland, Oregon metro area.

AreaMeasureBond SummaryProperty Tax AffectDescription
Portland, Multnomah CountyPortland Community College Bond Measure 26-224Bonds to construct job training space, improve classrooms, safety, technology. The cost will maintain the 2022 rate of $0.38 per $1000 of assessed value.Voters approved bonds that will finance site-wide renovation and modernization, including enhancing accessibility and updating equipment. It will also expand programs, including flexible hybrid learning options.
Metro (Tri-County Area)Metro ballot measure 26-225Renews local option levy; protects natural areas, water quality, fishThe tax will remain 9.6¢ per $1,000 of assessed value.This measure supports the ongoing preservation of natural areas, improving water quality and protecting the habitats of native fish. It will renew current taxes as a 5-year operating levy beginning in 2023.
Multnomah CountyAlto Park Water District Measure 26-226Five-Year Local Option Tax for District Operations. Maintains existing rate of $0.60 per $1,000 of assessed value. This continues the levy for fire protection service.
Washington CountyBeaverton School District Measure 34-321Renew Beaverton Schools Levy to Preserve Teachers, Protect Class Sizes. Maintains existing tax rate of $1.25 per $1,000 of assessed property value. This levy renews funding for teacher salaries and helps to maintain class size.
Multnomah CountyDavid Douglas School District Measure 26-227Bonds to Increase Safety, Security; Repair, Update Schools; Vocational Education. This measure approves new bonds that will fund improvements throughout the district, including building updates and repairs and the construction of a new career-technical education building. It will also include the creation of a preschool center. The cost will be $0.88 per $1,000 of assessed value added to property taxes in the upcoming year.
Corbett, Multnomah CountyCorbett Fire District No. 14 Measure 26-237Corbett Fire District No. 14 General Obligation Bond Authorization. This will provide new funds to acquire emergency and firefighting equipment and renovate facilities through bonds.A new property tax of $0.65 per $1,000 of assessed property value will be authorized to fund these bonds.

Looking for Property Tax Relief?

With Portland housing costs continuing to climb, it is worth exploring what the many desirable Portland suburbs outside of Multnomah County, that may include lower property tax rates. Or perhaps now is the time to downsize and look for the many fantastic deals this cooling Portland real estate market is currently offering. Find your next home for sale at PortlandHomesforSale.com or contact our top 1% buyer’s agents today and let them help you find your perfect home. Chat with the bot on this site, or give us a call today at 503-773-0000. We’d love to connect!

December 12, 2022
AUTHOR

Stephen FitzMaurice

Stephen FitzMaurice, Realtor is a top 5% real estate agent in the U.S. A Principal Broker in Oregon, Managing Broker in Washington, he has been licensed since 2003 for residential real estate sales. Call his team in Oregon at 503-714-1111 or in Washington at 360-345-3833.

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