Oregon Short Term Rental Tax: The Complete 2026 Guide

Oregon short term rental operators face a layered tax system: a 1.5% state transient lodging tax, local room tax rates that vary by city and county, and state income tax on net rental revenue. Whether you host in Portland, Bend, Hood River, or along the coast, you must collect the right amounts from guests and file returns on time. Oregon has no general sales tax, so lodging tax is the primary obligation for short term rentals.

This guide covers every tax that applies to short term rentals in Oregon for 2026, whether you run one unit or a portfolio of rentals, including filing deadlines, what Airbnb and VRBO collect for you, and how local lodging tax rates differ by area. For short term rental zoning and permit rules, see our Oregon short term rental laws guide. Before investing, compare markets with our free STR market data to determine which areas generate the best returns.

Taxes That Apply to Short Term Rentals in Oregon

The total tax guests pay on transient lodging in Oregon typically runs 7% to 16% of the room charge, depending on location. Here is what may apply to your rental property:

• State transient lodging tax: 1.5% of the consideration charged for occupancy
• Local transient room tax: set by each city or county (typically 5% to 11.5%)
• Tourism improvement district fees in select areas (Portland charges 3%)
• Oregon state income tax on net rental revenue (up to 9.9%)

Each tax is administered by a different authority. The state lodging tax goes to the Oregon Department of Revenue. Local room tax is collected by either the city or county tax administrator, or by the Oregon Department of Revenue under an intergovernmental agreement. Every person who collects payment for short term rentals or other transient lodging, including operators and transient lodging intermediaries, is required to register, collect, and remit taxes to the appropriate authority. Failure to collect and remit the tax as required may result in penalty and interest charges.

State Transient Lodging Tax

Under ORS 320.305, a tax of 1.5 percent is imposed on any consideration charged for the sale, service, or furnishing of transient lodging. The tax applies to the total retail price, which included the room charge, mandatory cleaning fees, service charges, and any other amounts required for occupancy of the unit. Everything included in the required price of the stay is taxed; anything genuinely optional is not. Optional charges for goods or services not included in the price of the room are not subject to the tax.

Transient lodging is defined as any dwelling unit, house, room, or facility that a person rents for a rental period of fewer than 30 consecutive days. Hotels, motels, vacation homes, bed and breakfasts, guest houses, and short term rentals listed on platforms like Airbnb and VRBO all fall under this section of Oregon law. The definition is broad and covers any room or unit furnished to guests on a transient basis, whether the owner is present or not.

Revenue from the state lodging tax funds Travel Oregon, the state tourism commission. The law allows operators to retain 5% of the state transient lodging tax they collect as reimbursement for the costs of record keeping, reporting, and collecting the tax on behalf of the state. This makes Oregon one of the few areas where hosts receive a permitted credit for administering the lodging tax.

The tax is due when occupancy of the transient lodging ends. Operators must hold all tax amounts collected from guests in trust until the payment is remitted to the Oregon Department of Revenue. Under ORS 320.325, these amounts are not available for the operator's own use, and using collected lodging tax for business operations before making payment is a violation of state law.

How to File and Pay the State Lodging Tax

Transient lodging operators must file a quarterly return with the Oregon Department of Revenue using Form OR-TLT. The return requires operators to report taxable gross receipts for each facility location, the number of days of lodging provided, and the tax due for the period. Returns and payment are due on or before the last day of the month following each calendar quarter (a return postmarked on that day is on time):

• January through March: due April 30
• April through June: due July 31
• July through September: due October 31
• October through December: due January 31

You must file a return even if you did not collect any tax during the reporting period. Filing a zero return is required by law, and failure to file on the due date may result in penalty charges. If the due date falls on a weekend or holiday, the return is due the next business day. Set a reminder several days ahead of each filing day so you never pay late.

Registration and Revenue Online.

New operators register through Revenue Online on the Oregon Department of Revenue website. Beginning January 2026, the department is requiring all new businesses to use the "Register for a business tax" link rather than the old "File a return" quick link. To register, you will need your business name, organization type, federal employer identification number (FEIN) or Social Security number, and your mailing address. Once registration is completed, you can file returns and make payment electronically through Revenue Online.

Oregon does not require a separate state registration certificate for collecting transient lodging tax. Your first quarterly filing serves as your registration with the Oregon Department of Revenue. However, you may still need to register separately with your local city or county tax administrator if they do not participate in the state-administered collection process.

Record keeping requirements.

Operators must maintain detailed records of all transient lodging transactions. Records should include the date of each stay, the number of room nights provided, the total rent charged, the amounts of tax collected, and the number of guests per booking. The Oregon Department of Revenue has authority to audit transient lodging operators, and records must be kept for a minimum period as determined by the department's rules. Accurate record keeping is essential for filing correct returns and for defending your tax position during an audit or appeals process.

Local Lodging Tax Rates by Oregon City and County

Oregon local governments have broad authority to impose their own transient room tax on short term rentals. The average local lodging tax rate across Oregon cities is 7.6%, but rates in popular vacation rental areas run considerably higher. Here are tax rates for key Oregon markets:

• Portland: 6% city + 5.5% Multnomah County + 3% Tourism Improvement District fee = 14.5% local (16% total with state lodging tax)
• Bend: 10.4% city room tax (11.9% total with state)
• Cannon Beach: approximately 12.5% local room tax (14% total with state)
• Lincoln City: approximately 9.5% local room tax, cap of 285 permitted vacation rentals
• Hood River: approximately 8% local lodging tax (9.5% total with state)
• Seaside: approximately 8% local room tax
• Ashland: 9% local lodging tax (10.5% total with state)
• Eugene: 4.5% city room tax (6% total with state)
• Benton County: local room tax set by county ordinance, contact county tax administrator for the current rate

Contact your local city or county tax administrator to determine the exact rate, due date, and filing requirements for your facility. Rates change periodically as local governments adjust their ordinance, so verify amounts before each filing period.

Portland Metro: Lake Oswego, Oregon City, and Gresham

Cities in the Portland metro area outside Multnomah County set their own room tax rates. Lake Oswego imposes a local lodging tax on short term rentals and hotel rooms within city limits, and hosts there file directly with the city. Oregon City, in Clackamas County, charges a local lodging tax as well, and Clackamas County adds a county room tax for rentals in unincorporated areas. Gresham, although inside the same county, administers its own city lodging tax separate from Portland's. If your rentals sit near a city boundary, confirm the exact taxing jurisdiction with the county assessor.

State-Administered Local Taxes

Many Oregon cities and counties have entered into an agreement with the Oregon Department of Revenue to have their local transient lodging tax administered by the state. If your facility is located in one of these areas, you report and pay the local room tax on the same quarterly return you use for the state lodging tax. Schedule OR-TLT-2 on the return separates gross receipts by property location so the department can determine which local taxes are due based on each facility's address. The department maintains a table of all participating local governments, which is included on the return form and on the department's website.

If the city or county where your property is located does not have an agreement with the state, you must register and file separately with that local tax authority. This means some operators file one combined return with the Oregon Department of Revenue for the state and participating local lodging tax, and a separate return directly with their city or county. Portland, for example, requires operators to register with the city Revenue Division and file quarterly reports directly. You are required to collect the correct room tax rate and remit payment to each authority on time, regardless of whether the tax is state-administered or locally administered.

What Airbnb and VRBO Collect for You

Transient lodging intermediaries such as Airbnb and VRBO are required under Oregon law to collect and remit the 1.5% state transient lodging tax on behalf of hosts. Airbnb has been collecting the city and county lodging taxes there since July 2014. VRBO collects the state lodging tax and many local room taxes as well. These intermediaries are licensed to collect, file returns, and remit tax amounts directly to the appropriate authority.

However, platform collection does not eliminate your responsibility as the operator. Even when Airbnb or VRBO collects and remits taxes, you are still required to:

• Register for a tax account with the Oregon Department of Revenue
• File quarterly returns and report platform-collected amounts on the appropriate section of the return
• Register with your local city or county if they do not use state-administered collection
• Collect and remit all applicable taxes on any direct bookings outside the platform
• Maintain records of all stays, whether booked through a platform or directly

Guests who book through a platform where the intermediary collects all applicable taxes will see the tax included in their total at checkout. For direct bookings made through your own website or by phone, you as the host are fully responsible for collecting and remitting every lodging tax. Use Surge Score to evaluate rental properties before purchase and factor local tax rates into your revenue projections.

Portland and Multnomah County Lodging Taxes in Detail

Portland has the highest combined lodging tax rate in Oregon. Short term rental operators in the city must collect the following from guests:

• City of Portland Transient Lodgings Tax: 6% (5% general fund, 1% to Travel Portland)
• Multnomah County Transient Lodgings Tax: 5.5% (allocated to convention center operations, county facilities, and the Visitors Development Board)
• Portland Tourism Improvement District (TID) fee: 3% (may be passed to guests if separately stated on the bill as "3% Portland Tourism Assessment")
• State transient lodging tax: 1.5%

The combined rate in Portland is 16%. Operators who provide lodging for eight or more days in a calendar year must register with the Portland Revenue Division within the first 15 days of starting business. You must also be licensed with a short term rental permit from the Bureau of Development Services, and the permit number must be included in every listing. Quarterly reports and lodging tax payment are due by the last day of the month following each quarter, and a 30-day extension may be requested in writing. Booking agents and online travel companies that facilitate city rentals file monthly rather than quarterly.

The city ordinance requires operators to keep the tax amounts collected from guests segregated from operating funds. The city Revenue Division has enforcement authority to audit operators, and transient lodging tax reports that are not filed on the due date are considered delinquent on the first day of the following month. Portland also requires that the operator or host maintain a valid city business license and comply with all permitted use requirements for the dwelling unit.

Bend, Hood River County, and Clatsop County Coast Markets

Outside of Portland, several Oregon cities are popular short term rental markets with their own local lodging tax rules and room tax rates.

Bend imposes a city room tax of 10.4% on transient lodging, making the total rate 11.9% when combined with the state lodging tax. Bend requires all short term rental operators to be licensed and registered with the city before advertising their rentals. The local lodging tax is collected by the city and filed on a separate schedule from the state return. Bend is one of Oregon's fastest-growing short term rental markets, and local authorities are actively enforcing compliance with both tax and permit requirements.

Hood River charges approximately 8% local room tax on transient lodging. The combined rate with the state tax is approximately 9.5%. Hood River is a popular destination area for outdoor recreation, and short term rentals are a significant part of the local lodging market. Contact the Hood River city or county tax administrator for the current rate and filing due date.

The Oregon coast is the state's densest short term rental region, and Clatsop County (home to Astoria, Seaside, and Cannon Beach) collects a county lodging tax on top of city rates for rentals in unincorporated areas. Tillamook and Lincoln counties do the same. If your house or condo sits outside city limits on the coast, you likely owe the county room tax instead of a city tax. A beach house used part of the year as a second home and rented the rest of the year owes lodging tax on every paid day of use.

Cannon Beach has one of the highest local room tax rates on the Oregon coast at approximately 12.5%, bringing the total lodging tax to about 14%. Cannon Beach limits the number of short term rentals permitted within city limits, so the number of operators subject to the room tax is capped. Operators must hold a valid short term rental license from the city.

Lincoln City imposes a local room tax of approximately 9.5% and caps the total number of permitted short term rentals at 285 within city limits. This cap means that new operators may not be allowed in certain areas of Lincoln City even if they are willing to collect and remit the required taxes. Check with the Lincoln City tax administrator to determine if permits are available.

Oregon Income Tax on Rental Revenue

Oregon levies a state income tax on net rental income at rates up to 9.9%. Short term rental operators report rental revenue and deductible expenses on their Oregon individual income tax return. The process mirrors federal filing:

• Report income and expenses on Schedule E (rental property) or Schedule C if you provide substantial guest services
• Deductible expenses include mortgage interest, property taxes, insurance, cleaning fees, supplies, maintenance, depreciation, and property management fees
• The 14-day rule applies at the federal level: if you rent your home 14 days or fewer per year, that income is exempt from federal tax (IRS Publication 527). Oregon follows this rule as well.
• Nonresidents with Oregon rental property must file an Oregon return to report the income, unless the property produces a net loss for the year

Oregon also allows a subtraction for federal income tax liability paid, limited to $8,250 ($4,125 if married filing separately). This is one of the few states where hosts can partially offset their federal tax on their state return. Track all expenses carefully and consult a tax professional to determine which deductions apply to your business running short term rentals. For strategies to reduce your tax burden legally, see our STR tax loophole guide and material participation rules.

Oregon law requires that at least 70% of net revenue from any new or increased local lodging tax be dedicated to tourism promotion or tourism-related facilities, while taxes in place before July 2003 keep their original distribution. The state lodging tax funds Travel Oregon, and the 5% reimbursement retained by operators offsets the costs of collecting and remitting the tax.

Exemptions and Special Rules

Not all lodging arrangements are subject to the transient lodging tax in Oregon. Under ORS 320.308, the following are exempt from the state tax:

• Stays of 30 consecutive days or longer (the occupant is considered a residential tenant, not a transient guest)
• Lodging provided to employees as part of their compensation
• Facilities operated by governmental agencies or licensed nonprofit organizations for charitable purposes
• Rooms provided at hospitals, health care facilities, or educational institutions
• Certain lodging provided under a contract with a government agency for housing services

Local governments may have additional exemptions or rules that apply within their areas. Some coastal communities cap the number of short term rental permits allowed, which limits how many operators are permitted to collect room tax in those areas. Many cities require that the rental unit be owner occupied or used as the owner's primary home in order to qualify for a permit. Always check your local ordinance to determine whether any special provisions, allowed uses, or exemptions apply to your property type.

Are Federal Employees Exempt on Federal Business?

Yes, in limited cases. Federal employees traveling on official federal business are exempt from Oregon transient lodging tax when the room is paid directly by the federal government, such as with a government purchase card or agency check. If a federal employee pays with a personal card and is later reimbursed, the stay is taxable like any other. Collect documentation of the exemption, including the agency name and proof that payment came from the government, and keep it with your records. The same rule generally applies to local room taxes, though each ordinance section defines its own exemptions.

Penalties and Enforcement

Failure to collect and remit transient lodging tax can result in significant penalties from the Oregon Department of Revenue and local authorities:

• Late filing penalty: 5% of the tax due per month the return is late, up to a maximum of 25%
• Interest on unpaid amounts from the original due date at the rate determined by the department each year
• Additional penalties for willful failure to collect, report, or remit the tax as required by law
• Notice of deficiency if the department determines that tax amounts were underreported

Local authorities have their own enforcement mechanisms. Portland treats delinquent transient lodging tax reports as subject to collection action, and the city Revenue Division has authority to audit operators and impose additional fees. The department may also refer cases to the Oregon Department of Justice for collection of unpaid amounts. Tax amounts collected from guests are held in trust under ORS 320.325; using those funds for your own business operations before remitting payment is a violation of state law.

If you receive a notice of deficiency or penalty, you have the right to file an appeal. The appeals process allows operators to contest the tax assessment, present records, and request a hearing. Contact the Oregon Department of Revenue or your local tax administrator for information on how to file an appeal and the applicable deadlines.

Key Definitions Under Oregon Lodging Tax Law

Oregon's transient lodging tax statutes and local ordinances use specific defined terms. Understanding these definitions helps you follow the rules and answer questions from your tax administrator. The definitions below reflect the language used in ORS 320.300 and typical city and county ordinance sections:

• Transient lodging: hotel, motel, and inn dwelling units designed for overnight lodging occupancy of guests; spaces used for parking recreational vehicles or erecting tents during periods of human occupancy; and houses, cabins, condominiums, apartment units, or other dwelling units, or portions of any of these units, that are used for temporary human occupancy.
• Transient lodging provider: a person that furnishes transient lodging. The lodging provider is responsible for collecting the tax from occupants when no intermediary handles payment.
• Transient lodging intermediary: a person other than a provider that facilitates the retail sale of transient lodging and charges for occupancy, collects the consideration paid by occupants, or receives a fee or commission for facilitating the sale. Airbnb and VRBO are transient lodging intermediaries.
• Transient lodging tax collector: a transient lodging provider or a transient lodging intermediary. Every tax collector is responsible for collecting the tax and remitting payment to the department.
• Occupants: persons who rent a room, space, or dwelling unit for a period of fewer than 30 consecutive days. Occupants who stay 30 days or more are not subject to the tax.
• Rent: the consideration charged for occupancy, including all fees, service charges, and other amounts required to be paid as a condition of use of the space. Rent does not include optional charges shown separately on the bill for goods or services that are not a condition of occupancy.

Local ordinances often add their own defined terms. Review the specific section of your city or county code, and the state statute section that applies, before making assumptions about which rules apply to your rentals, and contact the tax administrator with questions about how a definition applies to your situation.

How to Collect Lodging Tax From Guests

Collecting the tax correctly starts with how you price and bill each stay. Follow this process for every booking:

• Calculate the taxable rent: the nightly rate multiplied by the number of days of the stay, plus cleaning fees, pet fees, extra guest fees, and any other charges that are a required condition of occupancy.
• Apply the combined tax rate for your location: state lodging tax (1.5%) plus your local room tax rate.
• Show the tax as a separate line item on the guest's bill or checkout page so occupants can see the amounts they pay.
• Exclude optional charges: if a guest chooses to pay for an optional service such as equipment rental or a late checkout that is not required for occupancy, that charge is generally not taxable when shown separately.
• Hold the tax collected in a separate account until the payment due date so the funds are available when you file.

If your guests pay through Airbnb or VRBO and the platform collects all applicable taxes for your area, the tax is added at checkout automatically and the intermediary remits it. For direct bookings, you must add the tax to the rent yourself, collect payment from the guest, and remit everything you collect with your return at the end of each period. Many hosts making direct sales use booking software that calculates tax amounts automatically based on the property address.

Example: Benton County Transient Lodging Tax

Benton County provides a useful example of how a county-level ordinance works alongside the state tax. The Benton County transient lodging tax is imposed under the county code and administered by the county tax administrator. Operators of short term rentals, hotels, and motels in unincorporated Benton County must register with the county, collect the county room tax from occupants, and file returns with payment by the due date shown in the ordinance. Corvallis, the largest city in Benton County, imposes its own city lodging tax, so operators inside city limits follow the city's rules instead of the county's for the local portion.

The Benton County ordinance includes sections covering registration, collection, reporting, penalties, appeals to the county board, and record keeping. If an operator disagrees with a determination made by the tax administrator, the ordinance provides an appeals process, typically starting with a written notice to the administrator and ending with review by the board of commissioners. Most Oregon county lodging tax ordinances follow this same structure, so reading one county code section gives you a good sense of how the others work.

Compliance Checklist for Oregon Hosts

Use this checklist to stay compliant with every lodging tax requirement that applies to your short term rentals (bookmark it and review it before each filing day):

• Register with the Oregon Department of Revenue through Revenue Online before your first taxable stay ends
• Determine your local room tax rate and whether your city or county is state-administered or requires separate registration
• Obtain any required business license or short term rental permit issued by your city or county
• Confirm which taxes Airbnb and VRBO collect for your address, and which taxes you must collect yourself
• Add the correct tax amounts to every direct booking and show them as separate charges
• Set aside collected tax in a separate account until the end of the quarter
• File your OR-TLT return and local return by each due date, including zero returns for periods with no rentals
• Retain the 5% state collection reimbursement you are allowed to keep
• Keep records of every stay, the rent charged, the number of days, and the tax collected for each dwelling unit
• Review your rates at the start of each year, since local governments can change room tax rates and regulations over time

Following this process protects you from penalty and interest charges and keeps your rental business in good standing with the state and your local tax administrator.

Common mistakes to avoid.

Even experienced short term rental owners make lodging tax errors on their rentals. The most common mistakes we see across Oregon short term rentals include:

• Assuming the platform handles everything: Airbnb and VRBO collect many taxes, but the host is still required to register, file returns, and pay tax on direct bookings.
• Forgetting zero returns: skipping a filing because you had no rentals that quarter still triggers a late filing notice from the department.
• Not taxing cleaning fees: mandatory cleaning fees are part of the rent and are taxable; only optional charges are excluded.
• Missing local registration: registering with the state alone is not enough when your city or county administers its own room tax and requires a separate account.
• Spending collected tax: tax amounts belong to the state and local government from the time of collection; spending them before the payment due date violates the trust requirement.
• Ignoring rate changes: local governments adjust room tax rates over time, and using last year's rate can leave you collecting less than you owe.
• Confusing lodging tax with income tax: the lodging tax on guests is separate from the Oregon income tax you pay on your net rental profits at the end of the year.

Professional short term rental management eliminates most of these risks. A licensed manager who handles hundreds of stays per year has systems in place to collect, report, and remit the right amounts to every authority on time, every period.

Filing Calendar, Gross Receipts, and the 5% Reimbursement

Plan your filing calendar around the quarterly due dates. Mark the last day of April, July, October, and January, and file at least a few days early so a technical problem never causes a late payment. Revenue Online accepts electronic payment by bank account transfer at no charge, and the department also accepts payment by check mailed with a paper return. Most hosts file and pay online because the system calculates the tax due automatically from the gross receipts you enter for each facility.

When you file, the return asks for total rent received for all rentals, the number of days of occupancy provided, exempt receipts (such as stays of 30 days or more), and the net taxable rent. The 1.5% state lodging tax is applied to the taxable amount, and the 5% collection reimbursement is subtracted before you pay. The reimbursement is included automatically when you file online, so you collect the full tax from guests but remit slightly less. For example, if your rentals produced $20,000 in taxable rent for the quarter, the state lodging tax collected from guests would be $300; you keep $15 as reimbursement and pay $285 with your return. Local room tax on the same $20,000 could range from $900 in a low-rate city to $2,900 in Portland, so the local portion is usually far larger than the state portion.

Hosts with rentals in multiple cities or counties must report gross receipts separately for each location so each local tax is calculated correctly. Keep confirmation numbers for every payment as part of your records.

Should you hire a property manager to handle lodging tax?

Many short term rental owners hand lodging tax compliance to a professional manager, and for good reason. A full service vacation rental manager handles the entire lodging tax lifecycle as part of its service: registering each home with the state and local tax administrator, adding the right tax so guests pay it at booking, making sure systems collect the correct rate, collecting payment from guests, filing every return on time, and remitting the tax due to each authority. The management fee is a deductible expense against your rental income, and the time saved each quarter adds up quickly for owners with more than one property.

Self-managing hosts can stay compliant, but if your rentals span Portland, Bend, and a coastal town, you may be making six or more separate filings per quarter, each with its own rate, form, and due date. Missing a filing by even a day means penalty and interest. A short term rental manager whose service included tax filing removes that risk entirely, and the tax is included in the guest bill either way, itemized the same as any hotel bill.

How a Typical Oregon Lodging Tax Ordinance Is Structured

Reading your local code once will answer most questions before they come up. Nearly every Oregon city and county lodging tax ordinance follows the same structure, section by section:

• Purpose and definitions: states the purpose of the tax imposed and defines hotel, motels, vacation rental, short term rentals, dwelling, spaces, and other places of lodging covered by the chapter, along with who is considered an operator.
• Tax imposed: sets the rate applied to rent for each day of occupancy, states that the tax is added to the bill and collected from the person paying for the lodging at the same time payment for the stay is made, and confirms the operator collects payment of the tax, included on the guest bill, as agent for the jurisdiction.
• Registration and certificates: requires every operator, whether an individual owner or an LLC, to register each facility (a house, condo, home, or single room) within 15 days of starting rentals; a certificate of authority is then issued for each location and must be displayed. Certificates are granted for the specific unit and are not transferable when a property is sold.
• Returns and payment: sets the filing frequency and due dates, allows returns by mail or online, and permits the administrator to require certified statements of gross rent. Some jurisdictions let small operators file annually; others require monthly filing for large hotels while short term rentals file quarterly.
• Administration: names the tax administrator responsible for administering the chapter, authorizes regulations, and in some codes allows an administrative fee or lets the operator retain a small collection fee, similar to the 5% the state allows.
• Exemptions: lists occupants not subject to the tax, such as stays over 30 days, federal employees on official business, and lodging provided by hospitals. An exemption is only allowed when properly documented, and undocumented exempt stays are included in taxable rent during an audit.
• Penalties, interest, and appeals: sets penalties for operators who fail to file or fail to remit, adds interest on late payment, and grants the right to appeal a determination, first to the administrator and then to the city council or county board.
• Records: requires operators to keep records of rent, tax collected, and exempt stays, typically for three years or more, and to make them available when the administrator asks to visit or examine them.

Transient lodging intermediaries are covered by the same chapters: when a platform collects payment from guests, the code treats the intermediary as the tax collector for those transactions, and the owner remains responsible for stays booked outside the platform. If your rentals are held in an LLC, register in the LLC's name, because the certificate, returns, and any penalty notices will be issued to the registered entity. When jurisdictions update their table of rates or adopt new regulations, notice is typically posted and mailed to registered operators.

Where to find filing information for each jurisdiction.

Every jurisdiction publishes lodging tax information for short term rentals, and knowing where to look saves hours each quarter:

• State: the Oregon Department of Revenue's transient lodging tax page has the OR-TLT form, filing instructions, the list of state-administered local taxes included in the combined return, and contact information for the lodging tax unit.
• Portland: the Revenue Division's transient lodgings section covers registration, monthly and quarterly filing, and the TID assessment.
• Bend, Ashland, Eugene, and other cities: each city finance department posts its room tax code section, the current rate, the return form, and the day of the month each filing is due.
• Counties: county treasurer or finance pages carry the lodging tax ordinance, registration information, and forms for rentals in unincorporated areas.

Bookmark the pages for every jurisdiction where you operate and check them before you file each quarter; rates and forms change more often than most hosts expect. When in doubt about which day a return is due or whether a new fee is included in taxable rent, collect the answer in writing from the tax administrator and file it with your records.

Which Property Types Are Covered

The lodging tax applies to every kind of transient lodging, not just whole-house short term rentals. Understand which category your property falls into, because permit rules sometimes differ even when the tax treatment is the same:

• Entire house or vacation home rented for less than 30 days at a time
• A single bedroom or a couple of bedrooms in an owner occupied home (a "hosted" or home share rental)
• Accessory dwelling units, guest cottages, and converted garage spaces
• Condos and apartments where short term use is allowed and the space is licensed for rentals
• Bed and breakfast inns, which follow the same lodging tax rules as a hotel
• RV spaces, campsites, and yurts rented to the public for overnight stays

The privilege of operating any of these as transient lodging comes with the same core duties: collect the tax from every party that books, include the tax on the bill, file each return, and submit the remittance by the due date. Note that a room occupied by the same guest for less than 30 consecutive days is always subject to the tax, no matter the property type, while month-to-month arrangements are not. If you are making a change of use, such as converting a long term rental into a vacation rental, register before the first paid stay in order to stay compliant.

Salem, extensions, and practical administration tips.

Salem, the state capital, imposes its own city lodging tax on short term rentals, and Marion County covers unincorporated areas nearby; like most mid-size Oregon cities, Salem requires operators to be licensed with the city before hosting. A few final administration tips that cover common concerns and options:

• Extensions: the Oregon Department of Revenue may grant a filing extension for good cause, but an extension to file is not an extension to pay; interest still accrues on the tax from the original due date. Request an extension in writing before the deadline.
• Standard lodging rate changes: when you raise your standard lodging rate for peak season, the tax collected rises automatically with it; there is nothing extra to file, but your quarterly remittance will be higher.
• Mail versus online: returns can be submitted by mail, but online filing gives you an immediate confirmation and reduces violations caused by lost paperwork.
• Amended returns: if you discover an error, submit an amended return promptly; voluntarily correcting a mistake typically avoids penalties that would follow an audit finding.
• Selling your property: notify each tax authority, file a final return, and keep your records; the certificate granted for the old owner does not cover the new one, and transient lodging providers who fail to close accounts often keep receiving delinquency notices.

Owner questions: fees, service charges, and what is included in taxable rent.

The question every owner asks is which fees are included in the taxable rent and which are not. The rule is simple: any charge the guest is required to pay as a condition of occupancy is included, and any truly optional service the guest can decline is not. Here is how common charges break down for short term rentals:

• Nightly rent: always subject to the tax, for every day of the stay
• Cleaning fees: subject to the tax, because guests are required to pay them
• Pet fees and extra guest fees: taxable when required as a condition of the booking
• Booking or service fees charged by the host: taxable when required
• Damage waivers required at checkout: taxable
• Refundable security deposits: not taxed if refunded on the day of checkout or after; any amount kept becomes taxable rent
• Optional mid-stay cleaning service the guest chooses to add: not taxable when shown separately
• Optional equipment such as bikes, kayaks, or a crib offered for a separate fee: not taxable when genuinely optional

If you host a whole house, a guest suite in your home, or a single room, the same rules apply: the tax is calculated on everything the guest must pay to occupy the space for each day of the stay. When you file, report the full taxable rent for all rentals, subtract exempt amounts, and pay the tax due for the period. Owners who collect the tax correctly at booking never have to pay it out of pocket later.

One more owner question: do you pay lodging tax on free stays? No. If no rent is charged, there is no tax. A discounted stay is taxed on the amount actually paid.

Oregon Short Term Rental Tax FAQ

What is the Oregon transient lodging tax rate?

The state transient lodging tax rate is 1.5% of the total consideration charged for occupancy of transient lodging. Local room tax rates are set by each city and county and average 7.6% across Oregon, making the combined rate typically 9% to 16% depending on the location of the rental property.

Does Airbnb collect Oregon lodging tax for hosts?

Yes. Airbnb and VRBO are required under Oregon law to collect and remit the 1.5% state lodging tax and many local room taxes on behalf of hosts, and they collect these amounts from guests at checkout. However, operators must still register with the Oregon Department of Revenue, file quarterly returns, and collect and remit taxes on any direct bookings not processed through a platform.

When are Oregon transient lodging tax returns due?

Returns are filed quarterly and are due by the last day of the month following each quarter: April 30, July 31, October 31, and January 31. You must file a return for every period, even if no tax was collected, and pay the full amount you collect from guests for each day of occupancy. Late returns are subject to penalty and interest charges.

Do I need to register to collect Oregon lodging tax?

Yes. New operators register through Revenue Online on the Oregon Department of Revenue website. You may also need to register separately with your city or county tax administrator if they do not use the state-administered collection process. Registration requires your business name, federal identification number, and mailing address.

What happens if I do not collect transient lodging tax in Oregon?

The Oregon Department of Revenue may impose a penalty of 5% per month on unpaid tax amounts, up to 25%, plus interest from the original due date. Local governments have their own enforcement authority and can audit operators. Tax amounts collected from guests are held in trust under ORS 320.325, and failure to remit them is a violation of state law.

Are stays longer than 30 days subject to Oregon lodging tax?

No. Stays of 30 consecutive days or longer are exempt from both the state lodging tax and local room tax, starting from the first day of the stay. The guest is considered a residential tenant rather than a transient lodging occupant for that rental period, and the room tax does not apply.

Oregon's layered tax system rewards operators who stay organized and file returns on time. Track every booking day by day, collect the correct lodging tax amounts from guests, pay each authority on time, and file quarterly even during slow periods. If you are evaluating an Oregon vacation rental market for investment, use our free STR market data and Surge Score to compare revenue potential across areas.

Want help managing your short term rentals in Oregon? Surge's full service management handles lodging tax compliance, dynamic pricing, and guest service, and we make sure you never pay a penalty for a missed filing. Book a free intro call or reach us at (888) 616-8149 to learn how we help owners of short term rentals across the state collect, file, and remit lodging tax while maximizing revenue.

For more on managing taxes across your portfolio, explore our STR tax loophole guide, material participation rules, and state-by-state tax guides for Colorado, Washington, and Virginia.