Senate Bill 1511, which proposes increasing Oregon’s estate tax exemption from $1 million to $2.5 million for each individual passed the Senate on February 24, 2026, and has been referred to the House Revenue Committee.

Unfortunately, the proposed bill, which also proposes adjustments for inflation and higher tax rates for estates over the new $2.5 million exemption, is silent on any updates to the current rules on portability. As the law stands, Oregon does not have portability, which means that if a spouse leaves all of their estate to their surviving spouse, that spouse cannot add the decedent spouse’s estate tax exemption to their own estate tax exemption when they die. Accordingly, married couples with over $2.5 million in assets, will still need to ensure that their estate planning includes mechanisms to preserve both spouses’ estate tax exemptions so that their children and/or other beneficiaries can maximize both spouses’ $2.5 million estate tax exemptions.

Is it finally time for Oregon’s dusty estate tax law to get an update? Or will the bill die in the House? Only time will tell, be sure to follow along here for more updates.