Educational information only, not tax advice. Rules and figures change — confirm your situation with a qualified Oregon tax professional before filing.
Oregon · United States · Short-term rental taxes
Short-Term Rental Taxes in Oregon
Oregon STR hosts owe federal and state income tax on rental profits, plus a statewide 1.8% Transient Lodging Tax and additional local lodging taxes that vary by city or county.
The 30-Second Answer
- Federal income tax: Report STR net income on Schedule E (passive rental) or Schedule C (active business); the 14-day personal-use rule determines which applies and how much you can deduct.
- Oregon state income tax: Oregon taxes net rental income at graduated rates up to 9.9%; file Oregon Form OR-40 and attach the federal schedule — Oregon has no separate STR flat-rate regime.
- Statewide Transient Lodging Tax (TLT): Oregon imposes a 1.8% state TLT on gross lodging revenue for stays of 30 consecutive days or fewer, collected and remitted to the Oregon Department of Revenue.
- Local lodging taxes: Cities and counties layer their own TLT on top — Portland charges 6% city + 5.5% Multnomah County, Bend charges 10.4%, and rates vary elsewhere; platforms like Airbnb collect and remit many of these automatically.
Deductions
What Oregon STR Hosts Can Deduct
Ordinary and necessary rental expenses reduce your taxable income at both the federal and Oregon state level — keep receipts for everything.
If you also use the property personally, expenses must be allocated between rental and personal days. Oregon conforms to federal IRS rules on rental expense deductibility (IRC §§ 162, 167, 280A). Consult a tax professional for your specific situation.
Filing Calendar
Key Dates & Filing Calendar
Oregon personal income tax deadlines mirror federal deadlines; local TLT filings follow city/county schedules.
Oregon's state Transient Lodging Tax must be registered and remitted separately from income tax. Register with the Oregon Department of Revenue before collecting lodging revenue.
Oregon Department of Revenue – Transient Lodging Tax (oregon.gov/dor); Oregon DOR personal income tax filing deadlines (oregon.gov/dor)
Income Tax Treatment
How Your STR Income Is Taxed: Schedule E vs. Schedule C
Oregon has no simplified flat-rate STR regime. Your federal filing method — passive rental (Schedule E) or active business (Schedule C) — flows directly into your Oregon OR-40 return.
Schedule E — Passive Rental
Standard rental income treatment for most hosts
- Net rental income taxed at ordinary Oregon rates (up to 9.9%) — no self-employment tax on net income.
- Passive loss rules limit deductions if losses exceed income; up to $25,000 passive loss allowance phases out above $100,000 AGI.
- Depreciation, mortgage interest (rental portion), repairs, insurance, and platform fees all deductible.
- Oregon conforms to federal Schedule E treatment; report on OR-40 with federal figures.
No income ceiling; passive loss rules apply
Schedule C — Active Business
For hosts providing substantial services or operating like a hotel
- Net profit subject to federal self-employment tax (~15.3%) in addition to Oregon income tax — a significant extra cost.
- Broader deduction flexibility and potential 20% Qualified Business Income (QBI) deduction federally.
- Oregon does not have its own QBI deduction; Oregon income tax still applies to net profit.
- Required when stays average 7 days or fewer AND substantial services are provided.
No income ceiling; QBI deduction may apply (up to 20% federally)
Depreciation
Depreciation for Oregon STR Properties
Oregon conforms to federal depreciation rules under MACRS. You can deduct the cost of the building and improvements over their IRS-prescribed useful lives.
| Asset | Typical write-off period | Notes |
|---|---|---|
| Residential rental building | 27.5 years (straight-line) | Land value is not depreciable; allocate purchase price between land and building. |
| Appliances & furniture | 5 years (MACRS) | Bonus depreciation or Section 179 may allow faster write-off federally; Oregon partially conforms. |
| Carpeting & flooring | 5 years (MACRS) | Classified as personal property if replaceable without structural damage. |
| Roof, HVAC, structural improvements | 27.5 years (straight-line) | Qualified improvement property rules may apply; consult a tax professional. |
Oregon generally conforms to federal MACRS depreciation. However, Oregon does not always conform to federal bonus depreciation provisions — check Oregon DOR guidance each year for any decoupling. Only the rental-use percentage of the property is depreciable if you also use it personally.
When you sell the property, depreciation previously claimed is subject to federal 'depreciation recapture' taxed at up to 25% (unrecaptured Section 1250 gain). Oregon also taxes this gain as ordinary income at state rates up to 9.9%.
Transient Lodging Tax (TLT)
Oregon Transient Lodging Taxes: State + Local
Oregon has a layered lodging tax system: a statewide 1.8% TLT plus city and county taxes that can push the combined rate well above 10%.
All STR operators in Oregon must collect and remit the state 1.8% Transient Lodging Tax. Most cities and counties impose additional local TLTs. The examples below show Portland and Bend — two of Oregon's most active STR markets.
Portland combined: ~16.3% (state 1.8% + city 6% + county 5.5% + TID 3%). Bend: ~12.2% (state 1.8% + city 10.4%).
Oregon DOR Transient Lodging Tax (oregon.gov/dor/programs/businesses/pages/lodging.aspx); City of Portland Revenue Division (portland.gov/revenue/transient-lodgings-tax); City of Bend Room Tax (bendoregon.gov/services/business/short-term-rentals/room-tax/)
| Booking type | Who collects & remits | What it means for your books |
|---|---|---|
| Airbnb booking (Portland) | Airbnb collects and remits Portland city, Multnomah County, and state TLT on behalf of hosts under its marketplace facilitator agreement | You do not remit these taxes yourself for Airbnb bookings, but you must still register and may need to file zero-balance returns; confirm with Portland Revenue Division. |
| VRBO / Vrbo booking | VRBO collects and remits state TLT and some local taxes; verify coverage for your specific city/county | Check your VRBO dashboard to confirm which taxes are remitted; you remain responsible for any taxes the platform does not cover. |
| Direct booking (your own website) | Host collects from guest and remits directly to Oregon DOR (state TLT) and local city/county | You must register as a lodging operator, collect the correct combined rate, and file returns on the required schedule. |
Wilsonville and other Oregon cities also impose local TLTs at varying rates. Always verify the current rate with your specific city or county finance department before collecting from guests.
Platforms
How Booking Platforms Handle Oregon Taxes
Major platforms collect and remit Oregon lodging taxes for most bookings, but income reporting thresholds and coverage vary.
| Platform | Reports your income | Collects the local lodging tax | Annual earnings summary |
|---|---|---|---|
| Airbnb | Form 1099-K if gross transactions exceed $20,000 and 200+ transactions (2025 threshold); 1099-MISC for bonuses ≥$600 | Yes — collects and remits Oregon state TLT and many local TLTs (Portland, Bend, etc.) under marketplace facilitator agreements | Annual earnings summary available in host dashboard by January 31 |
| Vrbo / HomeAway | Form 1099-K at applicable federal threshold | Collects and remits state TLT and select local taxes; coverage varies by jurisdiction — verify in your account settings | Annual earnings summary available in owner dashboard |
| Direct / Other | No platform reporting; host responsible for all record-keeping | No — host must collect and remit all applicable state and local TLTs directly | Host must maintain own records; no third-party summary issued |
Using Multiple Platforms?
If you list on both Airbnb and Vrbo (or take direct bookings), aggregate all gross income across platforms for your Oregon OR-40 and federal return. Each platform reports only its own payments — you must combine them. Track which platform remitted which local taxes to avoid double-remitting or under-remitting.
DAC7 / OECD Reporting
DAC7 is a European Union directive and does not apply to Oregon or US-based hosts. The US equivalent is IRS Form 1099-K reporting by platforms. Oregon does not have a separate state-level platform reporting mandate beyond federal 1099-K rules.
Airbnb US tax documents help (airbnb.com/help/article/414); Oregon DOR Transient Lodging Tax (oregon.gov/dor/programs/businesses/pages/lodging.aspx)
Illustrative P&L: Schedule E vs. Schedule C
Example for an Oregon STR earning $30,000/year in gross rental revenue. Numbers are illustrative only.
Record-Keeping
Stay Audit-Ready: What to Keep
Oregon DOR and the IRS can audit STR returns; solid records protect every deduction you claim.
| Keep | How long | Why |
|---|---|---|
| Booking records (dates, guest names, nightly rate, platform) | At least 4 years after filing | Proves rental days vs. personal-use days for expense allocation and TLT compliance |
| Receipts for all expenses (repairs, cleaning, supplies, utilities) | At least 4 years after filing | Substantiates deductions on Schedule E or C; Oregon DOR statute of limitations is generally 3 years |
| TLT registration certificates and filed returns (state and local) | At least 4 years after filing | Demonstrates compliance with Oregon and local lodging tax obligations |
| Property purchase documents, improvement invoices, depreciation schedules | As long as you own the property + 4 years after sale | Needed to calculate adjusted basis, depreciation recapture, and capital gain on sale |
| Platform 1099-K and earnings summaries | At least 4 years after filing | Cross-references income reported to IRS; discrepancies trigger notices |
Oregon's standard audit lookback is 3 years from the filing date, but can extend to 6 years if income is understated by more than 25%. Keep records accordingly.
Estimator
Short-Term Rental Tax Estimator
Plug in your bookings and costs to see your likely taxable position.
Your Numbers
Total short-term-rental income, before costs.
Allowable running costs, mortgage interest, depreciation and platform fees.
Your top income-tax band, as a percentage.
Estimated tax owed
Income tax on your net rental profit at your marginal rate.
Illustrative estimate. A simplified model to orient you — it is not tax advice. Confirm your situation with a qualified local professional.
Sources & notes
This page is for educational purposes only and does not constitute tax advice. Tax laws change; always verify current rates and rules with the Oregon Department of Revenue or a qualified tax professional.
- Oregon Department of Revenue — Transient Lodging Tax — https://www.oregon.gov/dor/programs/businesses/pages/lodging.aspx — Official state TLT rules, registration, and rates (1.8% state rate).
- City of Portland Revenue Division — Transient Lodgings Tax — https://www.portland.gov/revenue/transient-lodgings-tax — Portland 6% city TLT, Multnomah County 5.5% TLT, and 3% TID fee details.
- City of Bend — Room Tax — https://bendoregon.gov/services/business/short-term-rentals/room-tax/ — Bend 10.4% room tax rate, filing schedule, and exemptions.
- Airbnb — US Tax Documents Help — https://www.airbnb.com/help/article/414 — 1099-K and 1099-MISC thresholds and issuance dates for US hosts.
- Avalara MyLodgeTax — Oregon Vacation Rental Tax Guide — https://www.avalara.com/mylodgetax/en/resources/vacation-rental-tax-guides/oregon.html — Overview of Oregon state and local lodging tax obligations for STR hosts.
- City of Wilsonville — Transient Lodging Tax — https://www.wilsonvilleoregon.gov/finance/page/transient-lodging-tax — Example of a smaller Oregon city's local TLT program.
Questions
Frequently Asked Questions — Oregon STR Taxes
Mr Props Team
Property & Short-Term Rental Tax specialists
Make Tax Season a Non-Event
Mr. Props tracks your STR income, expenses and remittances all year, so your Oregon filing is ready to file instead of reconstructed in a panic.
Join Hosts Running Smarter Portfolios
Monthly tactics on STR tax, pricing and operations — written for operators, not accountants.
No spam. Unsubscribe anytime.