Transfer Tax and Metro Supportive Housing Services Tax for Home Sellers in Portland, Oregon: 2026 Guide

Oregon does not impose a traditional real estate transfer tax at the state level. This surprises many sellers who have sold property in California, Washington, or other states where a percentage of the sale price is collected at closing as a transfer tax. In Oregon, that specific tax simply does not exist at the state level, which is genuinely good news for sellers across Portland, Beaverton, Lake Oswego, and the rest of the metro area.

For a deeper comparison of how Oregon stacks up against neighboring states on this point, this in-depth guide to Oregon real estate transfer taxes walks through the history and current status clearly.

The State Level: No Traditional Transfer Tax

Oregon voters and the legislature have consistently declined to enact a statewide transfer tax on real property sales. That means when you sell a craftsman bungalow in Sellwood, a condo in the Pearl District, or a ranch-style home in Southwest Portland, you will not see a line item on your settlement statement labeled "state transfer tax." This holds true whether the property sells for $350,000 or $2 million.

The County Recording Fee: What You Will See on the Settlement Statement

What sellers do pay at closing is a county document recording fee. In Multnomah County, which covers Portland proper, the recording fee for a deed transfer runs in the range of $90 to $130 depending on the number of pages in the document. This is a flat administrative charge, not a percentage of the sale price, and it is typically a minor line item compared to other closing costs.

Washington County (covering Beaverton and Hillsboro) and Clackamas County (covering Lake Oswego and Milwaukie) have similar recording fee structures. The exact amount varies slightly by county and document length, but no county in the Portland metro area imposes a percentage-based transfer tax on top of the state's zero-transfer-tax baseline.

2. The Metro Supportive Housing Services Tax: What It Is and Who It Applies To

The Metro Supportive Housing Services tax is a personal income tax, not a transfer tax on property sales. This distinction matters enormously for Portland home sellers. The SHS tax does not appear on your closing statement as a percentage of your sale price. Instead, it is assessed on your personal taxable income for the year, which may include taxable gain from a home sale depending on your specific circumstances.

What the SHS Tax Funds

Metro voters approved the Supportive Housing Services measure in May 2020, and the tax took effect January 1, 2021. The revenue funds services for people experiencing homelessness across the Metro jurisdictional area, including rental assistance, mental health services, and addiction treatment. Metro is the regional government covering Multnomah, Washington, and Clackamas counties, which together make up most of the Portland metro area.

Who Is Subject to the SHS Tax

The SHS tax applies to individuals who earn income within the Metro district boundary. For individuals, the tax kicks in on taxable income above $125,000. For households filing jointly, the threshold is $200,000 in taxable income. If your total taxable income for the year falls below those thresholds, you owe no SHS tax regardless of whether you sold a home.

Residency also matters. If you live within the Metro boundary, you owe SHS tax on all your taxable income above the threshold regardless of where that income was earned. If you live outside the Metro boundary but earned income within it (for example, you work in Portland but live in Scappoose or Newberg), you owe SHS tax only on the income sourced within Metro. A home seller who lives in the Metro area and has a taxable gain from selling their Portland home would generally include that gain when calculating SHS liability.

Metro's own FAQ page covers these residency and sourcing rules in detail. You can review the official guidance directly at Metro's SHS Taxes FAQ, which is updated as rules are clarified.

The Tax Rates in 2026

The SHS tax rate is 1% on taxable income above the threshold. So if you are a single filer with $175,000 in taxable income for the year, the SHS tax applies to $50,000 of that income (the amount above $125,000), resulting in a $500 SHS tax bill. The rate is flat; there is no bracket structure that increases the rate at higher income levels. As of September 2026, the 1% rate and the income thresholds remain unchanged from when the tax launched.

3. How the SHS Tax Affects a Portland Home Sale Specifically

The SHS tax does not tax your gross sale price. It taxes your taxable income for the year, and a home sale only adds to that taxable income to the extent you have a taxable capital gain after applying federal and Oregon exclusions. This is a critical distinction that many Portland sellers miss when they first hear about the SHS tax.

Capital Gains, Sale Proceeds, and the SHS Tax

When you sell a home, your gain is calculated as the sale price minus your adjusted cost basis (what you paid plus capital improvements you made over the years, minus depreciation if it was ever a rental). Federal law allows most primary residence sellers to exclude up to $250,000 of gain if single, or up to $500,000 if married filing jointly, as long as they have owned and lived in the home as their primary residence for at least two of the five years before the sale. Oregon conforms to this exclusion.

If your gain falls entirely within the exclusion, you have no taxable capital gain from the sale, and the home sale adds nothing to your SHS taxable income. For many Portland homeowners selling a mid-range property they have owned for five to ten years, this exclusion wipes out any SHS exposure from the sale itself. The SHS tax would then only apply if your other income (wages, business income, investment income) already pushes you above the $125,000 or $200,000 threshold.

Exclusions and Deductions That Can Reduce Your Exposure

Sellers who do have taxable gain (because their gain exceeds the exclusion, or because the home was not a primary residence) can still reduce their Oregon taxable income through standard deductions and other adjustments before calculating SHS liability. Selling costs including real estate commissions, title insurance, and certain closing fees can be subtracted from your gain calculation, reducing the taxable amount. A tax professional familiar with Oregon returns can identify every available reduction before you file.

Investment property sellers face a different situation. If you are selling a rental property or investment home in Portland, the primary residence exclusion does not apply, and the full gain (after subtracting your adjusted basis and selling costs) is taxable. That gain flows into your Oregon taxable income and can push you above the SHS threshold. If you are thinking through the tax implications of selling an investment property in Portland, the Investment Property Guide for Portland, Oregon covers the broader context of owning and eventually selling investment real estate here.

Multnomah County's Preschool for All Tax: A Related Layer

Portland sellers who live in Multnomah County also need to be aware of the Preschool for All (PFA) personal income tax, which is separate from the Metro SHS tax. The PFA tax applies to Multnomah County residents with taxable income above $125,000 (single) or $200,000 (joint), the same thresholds as the SHS tax. The PFA rate is 1.5% on income between the threshold and $250,000 (single) or $400,000 (joint), and 3% on income above those upper amounts.

If you live in Multnomah County and have taxable income from a home sale that pushes you above the thresholds, you could owe both the SHS tax and the PFA tax on the same dollars of income. Sellers in Washington County (Beaverton, Hillsboro) or Clackamas County (Lake Oswego, Milwaukie) who are outside Multnomah County's boundaries owe only the Metro SHS tax, not the PFA tax, though they should verify their specific address falls outside the county line.

4. What Portland Sellers Pay at Closing vs. What They File Later

Understanding the timing of these costs helps you plan your cash flow from the sale. Some costs come directly out of your sale proceeds at closing; others are calculated and paid when you file your tax return the following spring. The SHS tax and PFA tax fall into the second category.

Costs That Show Up on the Settlement Statement

At closing, Portland sellers typically see the following deducted from their gross sale proceeds before they receive their net check:

• Real estate commission: Negotiated between seller and listing agent; typically a percentage of the sale price, paid from proceeds at closing.
• Title insurance (owner's policy): In Oregon, it is customary for the seller to pay for the owner's title insurance policy. Premiums vary by sale price but commonly run $1,000 to $2,500 on a typical Portland home.
• Escrow and closing fees: Oregon uses title companies or escrow companies to close transactions. The seller's share of escrow fees typically runs $500 to $1,200 depending on the company and transaction complexity.
• County recording fee: The flat fee to record the deed transfer at the county, roughly $90 to $130 in Multnomah County as of 2026.
• Prorated property taxes: Oregon property taxes are paid in arrears, so sellers credit buyers for the portion of the tax year that has elapsed before closing.
• HOA fees or transfer fees (if applicable): Condos and planned communities in Portland often have HOA transfer fees or document fees due at closing, which vary by association.

Notice that neither the SHS tax nor the PFA tax appears on this list. These are income taxes, not transaction taxes, so they are not collected at closing. Your escrow officer will not withhold them from your proceeds. They are your responsibility to calculate and pay when you file your Oregon state income tax return for the year of the sale.

Taxes You File on Your Oregon Return

The SHS tax and PFA tax are filed as part of your Oregon combined tax return (Form OR-40 for residents). Metro and Multnomah County require separate schedules attached to the state return. If you expect to owe these taxes, you should make estimated quarterly payments during the year to avoid underpayment penalties, just as you would with federal estimated taxes. If you sell your home mid-year and realize a taxable gain, that is the quarter to adjust your estimated payments.

For a broader look at what sellers pay at closing in Portland, the article on selling a home in Portland: pricing, timeline and what to expect covers the full seller cost picture beyond taxes.

5. Real-World Numbers: Estimating Your Tax Exposure on a Portland Home Sale

Abstract tax rules are easier to understand with concrete examples. The numbers below are illustrative estimates based on the rules in effect as of September 2026. They are not tax advice; your actual liability depends on your full income picture, filing status, cost basis, and other factors that a CPA or tax attorney should review.

A Mid-Range Portland Home Example

Scenario: A married couple sells their primary residence in Northeast Portland for $575,000. They purchased it in 2014 for $295,000 and made $40,000 in capital improvements over the years. Their adjusted basis is $335,000. Their gain is $240,000. Because they are married filing jointly and have lived in the home as their primary residence for more than two years, the entire $240,000 gain is excluded under the federal and Oregon primary residence exclusion (the limit is $500,000 for joint filers). Their taxable income from the sale is zero.

• State transfer tax owed: $0. Oregon has no statewide transfer tax.
• County recording fee: Approximately $100 to $130.
• SHS tax from home sale: $0 on the sale gain. SHS liability depends on their other income for the year.
• PFA tax from home sale: $0 on the sale gain if they live in Multnomah County, for the same reason.

A Higher-Value Portland Home Example

Scenario: A single seller sells a primary residence in the West Hills for $1,100,000. They bought it in 2010 for $450,000 and made $75,000 in capital improvements. Adjusted basis is $525,000. Gain is $575,000. After the $250,000 single-filer exclusion, $325,000 is taxable gain. Their other income for the year is $80,000 in wages. Total Oregon taxable income for the year: approximately $405,000 (before deductions; simplified for illustration).

• State transfer tax owed: $0. Oregon has no statewide transfer tax.
• SHS tax exposure: 1% on taxable income above $125,000. On $280,000 of income above the threshold, that is approximately $2,800 in SHS tax.
• PFA tax exposure (if Multnomah County resident): 1.5% on income between $125,000 and $250,000 ($1,875), plus 3% on income above $250,000 ($4,650 on $155,000). Total PFA approximately $6,525.
• Combined SHS and PFA exposure: Approximately $9,325 in this simplified illustration, before any additional deductions that could reduce Oregon taxable income.

This is why high-value Portland home sales warrant a conversation with a CPA before closing. The SHS and PFA taxes are not trivial at higher income levels, and there may be legitimate planning strategies (timing of the sale, installment sale structures, 1031 exchanges for investment properties) that reduce your exposure. For context on where Portland home values currently sit and what a realistic sale price looks like for your property type, the Portland, Oregon Real Estate Market Guide for 2026 has current pricing data by area.

Sellers of luxury properties in Portland should pay particular attention. If you are selling a high-end home in the West Hills, Lake Oswego, or a premium Pearl District condo, the gain above the exclusion can be substantial. The Luxury Home Market in Portland, Oregon: What Buyers Should Know covers the price ranges in that segment, which can help you estimate your potential gain before you sit down with a tax advisor.