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Hotel And Lodging Tax In Portland 2026: TOT Rate And Rules
Portland's hotel tax stacks a state, city, and county rate that already totals 13%, and Oregon has already scheduled the state's share to jump from 1.5% to 2.75% on January 1, 2027.
August 28, 2026
8
min. read
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TL;DR
- Portland hotel stays carry a combined 13% tax: 1.5% Oregon state, 6% City of Portland, and 5.5% Multnomah County.
- Hotels with more than 50 rooms add a further 3% Portland Tourism Improvement District assessment, for 16%.
- "Hotel tax," "lodging tax," "occupancy tax," and "bed tax" all refer to the same charge on transient stays.
- Short-term rental hosts and booking agents also owe a flat $4-per-night fee dedicated to affordable housing, separate from the percentage taxes.
- Stays of more than 30 consecutive days are exempt from Portland's state, city, and county lodging taxes.
- Hotels file quarterly, but booking agents and online travel companies must file monthly instead.
- Oregon's state lodging tax rate is scheduled to rise from 1.5% to 2.75% on January 1, 2027, adding a new nature conservation fee.
- A property rented seven days or fewer a year without advertising is exempt from Portland's lodging tax entirely.
How Portland's Hotel and Lodging Tax Works
A Portland hotel stay carries a combined 13% tax at most properties: 1.5% Oregon state Transient Lodging Tax, 6% City of Portland Transient Lodgings Tax, and 5.5% Multnomah County Transient Lodging Tax. Hotels with more than 50 rooms add a further 3% Portland Tourism Improvement District assessment, for 16%.
The state tax is authorized under Oregon Revised Statutes Chapter 320, and the City and County taxes under their own local lodging tax codes, with the City of Portland collecting both the city's 6% and the county's 5.5% together on the same return for any property within city limits. Of the city's 6%, 5 percentage points go to the general fund and 1 percentage point is dedicated to Travel Portland, the city's destination marketing organization. The Portland Tourism Improvement District, created in 2019, layers a separate hotelier-approved assessment on top of that, which now supplies roughly 42% of Travel Portland's annual marketing budget.
These taxes apply to hotels, motels, bed and breakfasts, RV parks, and short-term rentals within Portland for stays under 30 consecutive days. Short-term rental hosts and booking agents carry an additional obligation the rest of the lodging stack does not: a flat $4-per-night fee on top of the percentage taxes, dedicated to the city's affordable housing and homelessness programs rather than tourism promotion.
Tax Rates and Extra Fees
Portland's total depends on room count and, starting in 2027, on a state rate change that is already scheduled into law.
| Tax component | Rate | Notes |
|---|---|---|
| Oregon state Transient Lodging Tax | 1.5% | Rising to 2.75% on January 1, 2027, adding a new 1.25% nature conservation fee |
| City of Portland Transient Lodgings Tax | 6% | 5% to the city general fund, 1% dedicated to Travel Portland |
| Multnomah County Transient Lodging Tax | 5.5% | Collected together with the city tax for any Portland property |
| Combined base total | 13% | State, city, and county combined; applies to hotels with 50 or fewer rooms |
| Portland Tourism Improvement District (PTID) assessment | 3% | Applies only at hotels with more than 50 rooms; funds roughly 42% of Travel Portland's budget |
| Combined total, hotels over 50 rooms | 16% | 13% base plus the 3% PTID assessment |
| Short-term rental nightly fee | $4 per night | Flat fee from booking agents and short-term rental hosts; funds affordable housing and homelessness programs, not tourism |
The PTID is worth tracking closely because it started as a 2% assessment when Portland City Council approved it in 2019 and was later raised to 3%, and because it only applies once a hotel passes 50 rooms. A property that expands past that threshold takes on a tax obligation it did not have the year before, with nothing else about its rate structure changing.
The scheduled 2027 state increase is also worth flagging now rather than later: Oregon's Transient Lodging Tax moves from 1.5% to 2.75% on January 1, 2027, and the extra 1.25 percentage points is a newly created nature conservation fee, not an increase to the existing tax's purpose. A hotel that does not update its tax configuration on that date will undercollect the state's share starting on day one of 2027.
Collection and Remittance
Guests pay the state, city, county, and (where it applies) PTID charges as part of the total room charge, plus the flat $4 nightly fee if they are booking a short-term rental. Hotels and motels file and remit quarterly, with returns due the last calendar day of the month following each quarter. Booking agents and online travel companies, by contrast, must file monthly, with returns due the last calendar day of the following month, a materially faster cycle than the one hotels use.
Operators must file a return every quarter even if no tax was collected during that period. The city collects the county's 5.5% alongside its own 6% for any Portland property, so a Portland hotel files one combined return covering both, rather than sending separate payments to the city and the county the way some other markets require.
Short-term rental platforms do not universally collect and remit all of Portland's charges, including the $4 nightly fee, on a host's behalf. Hosts need to confirm which taxes and fees their specific platform actually remits for Portland listings and remain responsible for anything the platform does not cover.
Exemptions From Portland's Hotel Tax
A stay of more than 30 consecutive days at the same facility, or a guest paying on a monthly rental basis, is exempt from Portland's lodging taxes. Federal government employees traveling on official business with proper documentation are also exempt, along with licensed healthcare and residential care facilities and emergency government-funded shelters.
Portland also carries a narrow exemption most cities in this cluster do not spell out explicitly: a property rented for seven days or fewer in a calendar year, without being advertised as a rental, falls outside the tax entirely. This is meant for an occasional, incidental rental, not a listing that runs on a booking platform for most of the year, and operators should not stretch it to cover a property that is otherwise actively marketed.
Common Mistakes Hotels Make With TOT Compliance
- Missing the 2027 state rate change. Oregon's Transient Lodging Tax rises from 1.5% to 2.75% on January 1, 2027. A hotel still collecting 1.5% after that date is undercollecting the state's share on every stay.
- Forgetting the PTID applies only above 50 rooms. A hotel that expands past 50 rooms owes an additional 3% it did not owe the year before, and a hotel management company running properties on both sides of that threshold needs two different total rates.
- Filing hotels and booking agents on the same calendar. Hotels and motels file quarterly in Portland, but booking agents and online travel companies must file monthly. A company that manages both under one filing calendar risks missing the faster deadline.
- Skipping the $4 nightly fee on short-term rentals. This flat per-night charge funds affordable housing programs and sits entirely outside the percentage-based tax stack, so a short-term rental configuration built only around percentage taxes leaves it out.
- Stretching the occasional-rental exemption too far. Portland's exemption for a property rented seven days or fewer a year without advertising is meant for incidental use, not a listing that is actively marketed on a platform most of the year.
- Assuming a platform remits everything. Not every booking platform collects and remits Portland's city, county, PTID, and nightly fee components uniformly, so a host or manager needs to confirm exactly what a given platform covers rather than assuming it is handled.
Where A PMS Fits Into TOT Compliance
None of this is about software first. It is about a hotel keeping its state, city, county, PTID, and any flat nightly fee configured as separate components that can each change on their own schedule, including the state rate increase already set for January 1, 2027. A property management system like roommaster lets a hotel set up each of these as its own line item rather than one blended percentage, so a change to any single piece does not require rebuilding the whole tax setup, and its revenue reports by date range make it easier to hit Portland's quarterly hotel deadline and, for booking agents, the faster monthly one. A booking engine that shows the full taxed total upfront, flat fees included, also helps front desk and reservations staff avoid disputes with guests over what a quoted rate actually included.
See how roommaster simplifies multi-property tax reporting.
Frequently Asked Questions
1. Does Portland have its own hotel tax rate?
Yes. Portland charges its own 6% Transient Lodgings Tax on top of Oregon's 1.5% state tax and Multnomah County's 5.5% tax, for a combined 13%. Hotels with more than 50 rooms add a further 3% Portland Tourism Improvement District assessment, for 16%.
2. What is Portland's hotel tax?
Portland's hotel tax is a combined 13% to 16% charge: 1.5% Oregon state Transient Lodging Tax, 6% City of Portland Transient Lodgings Tax, and 5.5% Multnomah County Transient Lodging Tax, plus an extra 3% Portland Tourism Improvement District assessment at hotels with more than 50 rooms.
3. What is Portland's lodging tax?
Lodging tax is another name for the same charge as Portland's hotel tax. Hotel tax, lodging tax, occupancy tax, and bed tax all refer to the same combined charge on hotel and short-term rental stays in Portland.
4. How long does a stay need to be to qualify for Portland's long-term exemption?
A stay of more than 30 consecutive days at the same facility, or a guest paying on a monthly rental basis, is exempt from Portland's state, city, and county lodging taxes.
5. Does Portland require hotels to disclose mandatory fees upfront?
Portland does not have its own ordinance requiring all-in price disclosure. Federal rules that took effect in 2025 require short-term lodging bookings nationwide, including in Portland, to show the total price, including mandatory fees like the $4 nightly short-term rental charge, before a guest completes a booking.
6. Who is responsible for filing Portland's hotel tax return?
Hotels and motels file and remit quarterly to the City of Portland, which collects both the city's and Multnomah County's tax together. Booking agents and online travel companies must file monthly instead of quarterly.
7. Is Portland's hotel tax about to change?
Yes. Oregon's statewide Transient Lodging Tax rises from 1.5% to 2.75% on January 1, 2027, with the additional 1.25 percentage points funding a new nature conservation fee that did not exist before.
