Bill > HB2112

This bill introduces a new exemption from Oregon estate tax that gradually decreases based on the total value of a deceased person's estate. Specifically, the bill creates a sliding scale exemption where estates valued under $4.5 million can claim a $1.5 million tax exemption, with the exemption amount reducing as the estate's value increases. For estates between $4.5 million and $8.5 million, the exemption ranges from $1.2 million down to $300,000, and no exemption is available for estates valued at $8.5 million or more. The new exemption will apply to the estates of individuals who die on or after January 1, 2026, and will be incorporated into Oregon's existing estate tax law (ORS 118.005 to 118.540). By phasing out the exemption based on estate size, the bill aims to provide tax relief for smaller estates while ensuring that larger estates contribute more in estate taxes. The bill will take effect 91 days after the adjournment of the 2025 regular legislative session, giving taxpayers and estate planners time to understand and prepare for the new provisions.

Budget and Finance

https://olis.oregonlegislature.gov/liz/2025R1/Measures/Overview/HB2112