Oregon doesn’t have a general homestead exemption, and it doesn’t cut property taxes based only on age or income [3]. What it does have: a state program that pays property taxes for seniors and people with disabilities and is repaid later [1][2], a disabled veterans’ exemption [4], and a constitutional limit that keeps most homes’ taxable value from rising more than 3% a year [5][6].
At a glance
- Deferral: who
- Age 62+, or on Social Security disability [2]
- Deferral: 2026 income limit
- $70,000 household income (2025 income) [1][2]
- Deferral: cost
- 6% simple interest a year, repaid later [1][2]
- Disabled veterans
- Exempts $27,092 or $32,512 of assessed value [4]
- Assessed value growth
- Generally capped at 3% a year [5]
Property tax deferral for seniors and people with disabilities
Under this program the state pays your county property taxes on November 15 each year [1][2]. It’s a loan, not a grant. The state places a lien on the home, charges 6% simple interest a year, and is repaid when the home leaves the program [1][2].
Who qualifies for 2026
You must meet all of these as of April 15, 2026 [2]:
- Age or disability: 62 or older, or disabled and receiving or eligible to receive Social Security disability benefits.
- Ownership: you own the home with a recorded deed in your name. Homes held in an irrevocable trust or a life estate don’t qualify.
- Five years: you’ve owned and lived in the home for the last five full years ending April 15. A medical absence counts if your provider documents it, and there’s an exception for some people who downsized from a home already in the program.
- Insurance: homeowners insurance covering fire and other casualty.
- Income: 2025 household income of $70,000 or less, counting taxable and non-taxable income of you and your spouse living in the home.
- Net worth: under $500,000, not counting the home or personal property.
- Reverse mortgage: generally none, with limited exceptions for older reverse mortgages.
- Home value: the home’s real market value is under the limit for your county and years in the home, or under the 2026 minimum cap of $301,000, whichever is greater [1][2].
Owners who have lived in the home fewer than 17 years may still qualify if its real market value is under 150% of the county median for homes [1].
How to apply
Apply with your county assessor between January 1 and April 15 [1][2]. Late applications are taken April 16 through December 1 with a fee: for 2026, 10% of the most recent year’s taxes, at least $20 and at most $180 [1]. After you’re approved, you recertify every two years [1][2].
When it has to be repaid
Deferred taxes, interest and lien costs come due when the home is disqualified: when the owner moves, changes the ownership or dies [2]. Surviving spouses and disabled heirs may be able to stay in the program by reapplying [2]. You can pay down the balance at any time and keep deferring [2]. If you simply cancel, you take over paying future taxes, but the balance isn’t due just because you cancelled [2].
You can use the deferral program and the veterans’ exemption together [2].
Disabled veteran or surviving spouse exemption
Qualifying disabled veterans, and surviving spouses or registered domestic partners of veterans, can exempt part of their home’s assessed value [3][4]. The Department of Revenue’s 2026 publication lists two amounts, which rise 3% each year [4]:
| Exempt assessed value | Who qualifies |
|---|---|
| $27,092 | Veterans certified 40% or more disabled by the VA or the armed forces; veterans certified 40% or more disabled by a licensed physician each year, with income no more than 185% of the federal poverty guidelines; unremarried surviving spouses or partners of veterans |
| $32,512 | Veterans with VA- or military-certified service-connected disabilities of 40% or more; unremarried surviving spouses or partners of veterans who died of a service-connected injury or illness, or who received the larger exemption for at least a year |
You must own and live in the home [4]. The exemption isn’t automatic: file a claim with your county assessor by April 1 before the tax year, or within 30 days if you buy the home between March 1 and July 1 [4]. You don’t refile each year unless your disability is certified by a physician, or your ownership or use of the home changes [4].
Deployed members of the Oregon National Guard or Reserves can claim a separate active-duty exemption on their primary residence [3].
The 3% cap on assessed value
Since Measure 50 took effect in 1997-98, each property in Oregon has a maximum assessed value that generally grows 3% a year [5][6]. You’re taxed on the lower of that number and the home’s real market value [5].
So when home prices climb faster than 3%, your taxable value can end up below what the home would sell for [5]. It can rise faster than 3% only for listed events, such as new construction or improvements, a partition or subdivision, a rezoning, or losing an exemption or special assessment [5].
Separately, Measure 5 limits operating taxes on each property to $5 per $1,000 of real market value for schools and $10 per $1,000 for other local government. Those limits don’t apply to bonds [6].
Paying the bill and appealing
Your fall tax statement is also your value notice [5]. You can pay in thirds by November 15, February 15 and May 15 [5]. Paying in full by November 15 earns a 3% discount, and paying two-thirds by then earns 2% [5]. Late installments are charged 1.33% interest a month [5].
If you think the assessor’s value is too high, appeal to your county’s property value appeals board by December 31, or the next business day if that falls on a weekend or holiday [7]. The appeal has to be about value, not the amount of tax, and comparable sales or an appraisal make the strongest case [5].
Sources
- Oregon Department of Revenue, Property Tax Deferral for Disabled and Senior Homeowners Program
- Oregon Department of Revenue, Publication OR-PTD: Property Tax Deferral for Disabled and Senior Homeowners (2026)
- Oregon Department of Revenue, Property tax exemptions
- Oregon Department of Revenue, Disabled Veteran or Surviving Spouse Property Tax Exemption (150-310-676)
- Oregon Department of Revenue, Real Property Assessment and Taxation (150-303-670)
- Oregon Department of Revenue, A Brief History of Oregon Property Taxation (150-303-405-1)
- Oregon Department of Revenue, Property tax appeals
Next steps
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See Credit Squad →Common questions
Does Oregon have a homestead exemption?
No. The Oregon Department of Revenue says the state has no statewide general homestead exemption and no exemptions based only on age or income. Seniors and people with disabilities can defer their property taxes instead, and disabled veterans and their surviving spouses can exempt part of their home's assessed value.
Who qualifies for Oregon's senior and disabled property tax deferral?
For 2026: homeowners 62 or older, or disabled and receiving or eligible for Social Security disability benefits, who have owned and lived in the home for the last five full years, carry fire and casualty insurance, had 2025 household income of $70,000 or less, have net worth under $500,000 not counting the home, and meet the home value limit.
Do deferred Oregon property taxes have to be paid back?
Yes. The state pays your taxes and places a lien on the home. The deferred taxes plus 6% simple interest a year come due when the home is disqualified, for example when you move, sell or transfer it, or the owner dies.
How much can my assessed value go up each year in Oregon?
Usually no more than 3% a year. Your property is taxed on the lower of its real market value and its maximum assessed value, and the maximum assessed value grows 3% a year unless there's new construction or another listed property change.