Oregon is the one of the five US states that have a 0% statewide sales tax which is especially advantageous for ecommerce businesses.
No Broad-Based Statewide Sales Tax
Oregon has no general retail sales tax collected on purchases. The state legislature has rejected multiple proposals to enact a broad statewide sales tax.
Oregon residents pay only the listed price at checkout without a sales tax. Taxes aren't added to receipts at stores, restaurants, or other retailers. This makes Oregon attractive for shopping versus sales-tax-heavy states like California.
For Oregon businesses, not collecting sales tax reduces compliance burdens. Point-of-sale systems and record keeping are simplified without tracking taxable transactions. This can give Oregon retailers a competitive edge.
The Impact of South Dakota vs. Wayfair on Oregon
For Oregon residents, online purchases from out-of-state sellers are sales tax-free. Without a statewide tax, no additional sales tax applies at checkout.
For Oregon-based retailers, the rules are more complex:
- Oregon businesses don't charge sales tax to Oregon residents, whether selling in-store or online.
- When shipping items to addresses in states with sales tax, the Oregon seller may be required to collect and remit tax based on that state's laws.
Many states now require out-of-state online sellers to collect sales tax if they exceed certain sales or transaction thresholds. For example, under South Dakota v. Wayfair ruling, sellers with over $100,000 in sales or 200 transactions to South Dakota customers must collect SD sales tax.
Oregon businesses that make significant online sales across the U.S. may be required to register, collect, report, and remit sales taxes to those states. Each state sets economic nexus thresholds, rates, and sale tax requirements.
Advantages of No Statewide Sales Tax in Oregon
The lack of a general Oregon sales tax provides advantages:
- Savings for residents on in-state purchases
- Reduced compliance burden for businesses
- Competitive edge to attract shoppers from neighboring states
Oregon lawmakers and voters have repeatedly defeated sales tax legislation. The result is a continued sales tax advantage.
No Broad-Based Statewide Sales Tax
Oregon has no general retail sales tax collected on purchases. The state legislature has rejected multiple proposals to enact a broad statewide sales tax.
Oregon residents pay only the listed price at checkout without a sales tax. Taxes aren't added to receipts at stores, restaurants, or other retailers. This makes Oregon attractive for shopping versus sales-tax-heavy states like California.
For Oregon businesses, not collecting sales tax reduces compliance burdens. Point-of-sale systems and record keeping are simplified without tracking taxable transactions. This can give Oregon retailers a competitive edge.
The Impact of South Dakota vs. Wayfair on Oregon
For Oregon residents, online purchases from out-of-state sellers are sales tax-free. Without a statewide tax, no additional sales tax applies at checkout.
For Oregon-based retailers, the rules are more complex:
- Oregon businesses don't charge sales tax to Oregon residents, whether selling in-store or online.
- When shipping items to addresses in states with sales tax, the Oregon seller may be required to collect and remit tax based on that state's laws.
Many states now require out-of-state online sellers to collect sales tax if they exceed certain sales or transaction thresholds. For example, under South Dakota v. Wayfair ruling, sellers with over $100,000 in sales or 200 transactions to South Dakota customers must collect SD sales tax.
Oregon businesses that make significant online sales across the U.S. may be required to register, collect, report, and remit sales taxes to those states. Each state sets economic nexus thresholds, rates, and sale tax requirements.
Advantages of No Statewide Sales Tax in Oregon
The lack of a general Oregon sales tax provides advantages:
- Savings for residents on in-state purchases
- Reduced compliance burden for businesses
- Competitive edge to attract shoppers from neighboring states
Oregon lawmakers and voters have repeatedly defeated sales tax legislation. The result is a continued sales tax advantage.
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About the author
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Deb Mukherjee
Deb is the head of marketing at Numeral. He has worked with the likes of Shopify and Wonderment and has helped countless ecommerce stores scale through seamlessly. With a background in finance, he often finds himself advising stores on sales tax and good financial systems.
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