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Hotel And Lodging Tax In Oregon 2026: TOT Rates By City
Oregon's state hotel tax nearly doubles in 2027 to fund wildlife conservation, and a 2003 grandfather rule still shapes how much of today's tax goes to tourism. See 2026 rates and rules by city.
August 28, 2026
7
min. read
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TL;DR
- Oregon calls its hotel tax the Transient Lodging Tax, with a state rate on top of separate city and county rates.
- "Hotel tax," "lodging tax," "occupancy tax," "bed tax," and "transient room tax" all describe the same charge, but local codes use different names city to city.
- The state rate is 1.5% through the end of 2026, then jumps to 2.75% starting January 1, 2027, with the increase legally defined as a separate "nature conservation fee."
- The 30-day exemption in Oregon works as a threshold for when the tax applies at all, not just a long-stay exemption: properties renting fewer than 30 days a year don't have to collect it either.
- Oregon has no voter-referendum requirement, but a 2003 statutory grandfather clause limits how a city can raise its rate unless most of the new revenue funds tourism promotion.
- A 2026 state pricing-transparency law requires online listings to fold mandatory fees, but not the tax itself, into the advertised price before booking.
- Only Portland has a named tourism district assessment on top of its base tax; other Oregon cities fund tourism through an earmarked share of the base rate instead.
How Oregon's Hotel and Lodging Tax Works
Oregon calls its hotel tax the Transient Lodging Tax at the state level, with cities and counties layering their own local version on top under the same statutory framework. The state rate is 1.5% through the end of 2026, rising to 2.75% for stays starting January 1, 2027.
Oregon has no voter-referendum requirement for a local lodging tax increase. Instead, a 2003 statutory grandfather clause controls it: a city or county generally can't create a new local lodging tax, or raise an existing one above its July 2003 level, unless at least 70% of the new revenue funds tourism promotion, a threshold dropping to 50% starting in 2027. This produces two-tier local rates in older tourist towns, a legacy pre-2003 base plus any newer increase locked into the tourism earmark.
The tax generally covers stays under 30 consecutive days, and a property renting fewer than 30 days a year is exempt from having to collect it at all, a lower bar for the tax's scope than most states use.
Tax Rates and Extra Fees
Because cities, counties, and the state each layer their own rate, and Portland adds a separate district fee on top, the combined total varies by location. Here's where the major Oregon markets stand as of 2026.
| City / county | Local rate | Notes |
|---|---|---|
| City of Lincoln City | 12% | Raised from 9.5% in 2023 after the city council chose to refer the increase to a public vote, a local decision, not a state requirement |
| City of Newport | 12% | Revenue split is explicitly 46% tourism, 54% general government, an unusually precise code-stated formula |
| City of Astoria | 11% | Among the higher rates on the Oregon coast |
| City of Bend | 10.4% | Only 31.2% funds tourism marketing, well below the standard 70% floor, because Bend's tax predates the 2003 grandfather cutoff |
| City of Ashland | 10% | Same grandfather pattern as Bend: roughly 31% funds tourism promotion because most of the rate predates 2003 |
| City of Portland | 6% city, plus a separate 3% district fee | 5% general fund plus 1% for Travel Portland, with a 3% Tourism Improvement District fee layered on top as a distinct assessment |
| Multnomah County (includes Portland) | 5.5% | Combined with Portland's city tax and district fee, lodging inside Portland totals roughly 11.5% in local charges before the state rate |
| Deschutes County (unincorporated only) | 8% | Applies only outside city limits; Bend, Redmond, Sisters, and La Pine each set their own separate rate |
| City of Eugene | 4.5% | Since October 2022, the Oregon Department of Revenue, not the city, collects and administers this local tax directly |
| State of Oregon (baseline) | 1.5%, rising to 2.75% in 2027 | Applies everywhere on top of any city or county rate |
Rates change after a city ordinance or, in some cases, a voter referendum, so treat this table as a starting point and confirm the current published rate with the specific city before filing.
Only Portland has a verified, separately named tourism district assessment: a 3% Tourism Improvement District fee on top of the city's 6% tax and the county's 5.5% tax. No comparable district assessment was found in Bend, Ashland, Eugene, or the coastal cities, they instead fund tourism promotion through the earmarked share of their base lodging tax itself, a structurally different approach from a state like California.
Collection and Remittance
The guest pays the tax, and the property remits it, but the cadence isn't uniform across Oregon. The state return is filed quarterly, due the last day of the month after each quarter. Portland requires quarterly filing for hotels and motels but monthly filing for online travel companies and short-term rental intermediaries, a split within the same city based on filer type. Bend requires monthly filing, due the 15th, with a return required even in a zero-revenue month.
Eugene is a distinctive case: since October 2022, the city no longer collects its own local tax directly, the Oregon Department of Revenue collects and administers it as part of the state's own quarterly return, meaning a Eugene property's local and state filings are now bundled rather than separate.
Oregon's Fee Transparency Rules
Since January 1, 2026, Oregon law makes it an unlawful trade practice to advertise or display an online price that excludes mandatory fees a buyer has to pay. Government-imposed taxes and reasonable shipping charges are excluded from that requirement. It's a general consumer-pricing law, not a hotel-specific statute, but state legal guidance specifically cites lodging resort fees as the kind of charge it targets.
The practical effect for Oregon hotels selling online is that mandatory fees, though not the tax itself, now need to be folded into the advertised rate before a guest completes a booking, rather than added as a surprise at checkout.
Exemptions From Oregon's Hotel Tax
Oregon's 30-day rule works differently than in most states: a guest who occupies the same unit for 30 or more consecutive days is exempt from the tax on that stay, but the same 30-day figure also determines whether the tax applies at all, a lodging facility that rents for fewer than 30 days total in a calendar year doesn't have to collect the tax in the first place. Both thresholds use the same number, but they answer different questions, and a property should be clear on which one applies to a given situation.
Common Mistakes Hotels Make With TOT Compliance
- Not preparing for the 2027 state rate jump. The state rate rises from 1.5% to 2.75% on January 1, 2027, and the increase has to be itemized separately as a conservation fee, not blended into the existing lodging tax line.
- Assuming 70% of every local tax funds tourism. In grandfathered cities like Bend and Ashland, only the portion of the rate added after 2003 carries that earmark, the actual tourism share can be far lower, around 31% in both cities.
- Treating Portland's district fee as part of the base tax. The 3% Tourism Improvement District fee is a separate assessment on top of the 6% city tax, not a component of it.
- Filing Eugene's local tax separately from the state return. Since October 2022, Eugene's local tax is collected by the state as part of the same quarterly filing, not remitted to the city directly.
- Using the wrong filing cadence for a given filer type. Portland requires quarterly filing for hotels but monthly for booking platforms and intermediaries operating in the same city.
- Not retraining front desk staff ahead of the 2027 rate change. Staff quoting the old 1.5% state rate after January 2027 will undercollect on every folio.
Where A PMS Fits Into TOT Compliance
None of the above is about software. It's about an Oregon property tracking a state rate that's about to change, a tourism earmark that depends on when the local rate was first adopted, and, in Portland, a separate district fee layered on top of the base tax. Where a PMS actually helps is in keeping each of those components configured as its own tax code, and pulling revenue reports by date range for whichever filing cadence applies. roommaster lets properties configure tax codes per rate, so the 2027 state increase is a configuration update once, not a manual recalculation on every folio.
See how roommaster simplifies multi-property tax reporting.
Frequently Asked Questions
1. Does Oregon have a statewide hotel tax rate?
Oregon has a state Transient Lodging Tax of 1.5% through 2026, but cities and counties each add their own local rate on top, so the combined total varies significantly by city.
2. What is Oregon's hotel tax?
Oregon's hotel tax is the Transient Lodging Tax, a state rate plus whatever local rate the specific city or county adds, applying to short-term lodging stays.
3. What is Oregon's lodging tax?
Lodging tax is the same charge as Oregon's Transient Lodging Tax, this is actually the state's own statutory name for it, not just a common nickname.
4. Is Oregon's hotel tax rate changing soon?
Yes. The state rate rises from 1.5% to 2.75% starting January 1, 2027, with the added portion legally defined as a nature conservation fee that must be itemized separately.
5. Do Oregon cities need voter approval to raise the hotel tax?
No, though some choose to ask voters anyway, as Lincoln City did in 2022. State law instead limits rate increases through a 2003 grandfather clause requiring most new revenue to fund tourism promotion.
6. Does Oregon require hotels to disclose the total price before booking?
Since January 2026, yes for online listings: mandatory fees must be folded into the advertised price, though the tax itself is excluded from that requirement.
7. Who is responsible for collecting and remitting Oregon's hotel tax?
The property collects the tax from the guest and remits it, on a schedule that varies by city: the state return is quarterly, Bend requires monthly filing, and Eugene's local tax is now bundled into the state's own quarterly return.
