After 14 years, Oregon’s estate tax may finally see some changes with SB 1511. Currently, estates worth $1 million or more are taxed between 10-16% depending on the size of the estate. The $1 million amount includes all assets: real and personal property.  For the average person, the estate typically includes one residential property, purchased years ago at a modest price. Over the years, real property values have steadily increased, which has led to more Oregonians ending up with assets worth $1 million or more and thus with a taxable estate. With this in mind, on February 18, 2026, the Senate Revenue Committee advanced SB 1511 to the Senate floor.

What SB 1511 Will Do If Passed

If passed as is, SB 1511 would increase the $1 million threshold to $2.5 million. This would mean that estates valued below $2.5 million would not be taxed and no tax return would need to be filed. Ultimately, this means that an individual could pass up to $2.5 million tax free to their loved ones.

This $2.5 million threshold would rise with inflation. Furthermore, estates worth between $2.5 million and $2.9 million would be taxed at an increased rate between 2.75% and 4.25%. The tax would cap at 19.9% for estates valued at more than $8.5 million.

If passed, these rules would apply to estates of decedents who die on or after January 1, 2027.

What Happens Next

SB 1511 still faces some challenges. It has advanced to the Senate floor where it will be read, debated, and possibly amended. Currently, the bill is awaiting its second Senate reading. It must pass by majority vote in the Senate and then it must undergo the same process in the House. If it passes both chambers, it will go to the governor for approval.