Oregon taxes capital gains as ordinary income — up to 9.9% — stacked on top of federal tax, so selling appreciated real estate can cost roughly ~33.7% of the gain. A 1031 exchange into a Delaware Statutory Trust lets Oregon investors defer that combined bill and trade active landlording for passive institutional real estate.
The Oregon tax math
Here's the tax stack on a long-held rental sold for a $1.5M gain (excludes depreciation recapture, taxed separately at up to 25%):
| On a $1.5M gain | Tax |
|---|---|
| Federal long-term capital gains (20%) | $300,000 |
| Net investment income tax (3.8%) | $57,000 |
| Oregon income tax (9.9%) | $148,500 |
| Total if you simply sell | $505,500 |
| Tax if you 1031 into a DST | $0 deferred |
In Oregon's top bracket, roughly the combined rate above goes to tax if you sell outright — versus $0 now with a qualifying 1031 exchange. Run your Oregon numbers →
Oregon 1031 rules
Rules summarized as of 2026 — verify with your tax advisor.
Conforms to federal §1031
Oregon conforms to IRC §1031, so a qualifying exchange defers Oregon tax as well as federal tax.
Withholding at sale
Oregon may require nonresident withholding at closing; a qualifying 1031 exchange generally defers it. Confirm specifics with your closing agent.
How gains are taxed
Taxed as ordinary income — up to 9.9%.
Oregon market snapshot
Illustrative — wire to a market-data feed; refreshed quarterly.
Baker 1031 in Oregon
Realized (acquired, held, sold) programs on Oregon assets. Joined from full-cycle-deals.csv; sponsor-reported, net-to-investor, not independently verified; past performance ≠ future results.
| Program | Sponsor | Avg annual | Equity × | Hold |
|---|---|---|---|---|
| 185 Oregon Equities LLC — Hillsboro | Time Equities | 25.15% | 4.65x | 11.65 yr |
| Marie Callender's — Gresham | AEI | 4.75% | 1.10x | 12.94 yr |
See every Oregon deal in the Data Center →
Current offerings for Oregon investors
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Oregon FAQ
What is the capital gains tax rate in Oregon?
Oregon taxes capital gains as ordinary income, up to 9.9%, with no separate long-term rate. Combined with the federal 20% rate and the 3.8% net investment income tax, a high-bracket Oregon seller can face roughly ~33.7% on a real estate gain.
Does Oregon recognize 1031 exchanges?
Yes. Oregon conforms to IRC §1031, so a properly structured exchange defers Oregon tax as well as federal tax.
Why use a 1031 exchange in Oregon?
To defer the tax on a large gain (up to about ~33.7% combined) and move from active landlording into passive, professionally managed real estate while keeping your full equity invested. These are Regulation D offerings for accredited investors.
Disclosures
This page is educational and is not investment, tax, or legal advice, or an offer to sell or a solicitation to buy any security. State tax and 1031 rules summarized here are general, current as of 2026, and not tax advice — verify with your CPA and attorney. For accredited investors only. Representatives may transact business only in states where registered or exempt. Securities offered through Aurora Securities, Inc., member FINRA/SIPC; Baker 1031 Investments, LLC is independent of Aurora. Performance shown is sponsor-reported, realized programs only, net of fees, not independently verified, and not indicative of future results.