Costs of Selling Land in Oregon
Here is what a land seller usually pays in this state, from transfer tax to capital gains. When you sell to us, we pay the closing costs and you pay no fees or commissions.
- Cash offer in 24 hours
- No fees or commissions
- We pay closing costs
- Close in as few as 7 days
Seller Costs in Oregon at a Glance
| Cost | Typical amount | Who usually pays |
|---|---|---|
| State transfer tax | None | n/a |
| Washington County transfer tax | $1 per $1,000 of price, only in Washington County | As the contract says |
| Nonresident seller withholding | Least of 4% of price, 8% of gain, or net proceeds; not required when price is $100,000 or less | Withheld from a nonresident seller's proceeds as a tax prepayment |
| Recording fees | Set by the county recorder; charged per document or page | Buyer usually records the deed; seller pays to record lien releases |
| Title search and owner's title insurance | Priced by the title company or attorney; varies with sale price | Set by the contract and local custom |
| Prorated property taxes | Your share of the current year's tax, up to the closing date | Seller for the days owned; unpaid back taxes are paid from the sale |
| Federal capital gains tax | 0%, 15% or 20% of a long-term gain (land held over 1 year); short-term gains taxed as ordinary income; 3.8% NIIT may apply at higher incomes | Seller, on the gain only |
| Oregon income tax on the gain | Taxed as ordinary income at 4.75% to 9.9% | Seller |
Example: Seller Costs on a $25,000 Land Sale
- State transfer tax
- $0
- Washington County transfer tax, only if the land is there and the contract puts it on you ($1 per $1,000)
- $25
- Total seller transfer cost
- $25
Outside Washington County the transfer tax is $0. In Washington County: $25,000 / $1,000 = 25 x $1 = $25. No nonresident withholding is required at this price because it is $100,000 or less. Recording, title and prorated taxes are not included.
Selling Costs in Oregon: What to Know
Oregon has no state transfer tax, and state law bars new local transfer taxes. Only Washington County charges one. This page lists the costs you can expect when you sell land in Oregon and who usually pays them.
Most of these costs come out of your proceeds at closing, so you see them on the settlement statement, not as bills. The one cost that comes later is income tax on any gain, which you report on your return. This page is general information, not legal or tax advice. Rates change, so confirm them with the office named here or a tax professional before you rely on them.
Oregon has no state transfer tax (except Washington County)
Oregon law stops cities, counties and districts from taxing the transfer of real property. A local tax that was already in effect on March 31, 1997 was allowed to stay (ORS 306.815).
Washington County has such a tax. It charges $1 per $1,000 of the selling price, and the tax or an exemption must be filed within 15 days of recording (Washington County). Who pays it is set in the sale contract.
Who pays what in Oregon
Oregon sales usually close through an escrow company. Escrow and title fees are split as the contract says, and local custom varies by county. The buyer usually pays to record the deed.
- Seller: the state transfer tax where the law puts it on the seller, any agent commission, payoff of liens and back taxes, and the seller's share of the year's property tax.
- Buyer: recording the new deed, any lender fees, and the costs the contract assigns to the buyer.
- Either side: title insurance, settlement or escrow fees, and survey costs, as the contract says.
Attorney or title company: who closes a land sale in Oregon
Most Oregon land sales close through an escrow agent at a title company. The escrow officer holds the money, prepares the settlement statement, records the deed and pays off liens and back taxes.
If you live outside Oregon, the escrow agent may have to withhold part of your proceeds for Oregon income tax. You can hire a lawyer to review the contract, which helps with heirs, estates or title problems.
Capital gains tax when you sell land in Oregon
Federal tax applies to the gain, not to the sale price. The gain is roughly the sale price minus what you paid for the land, minus selling costs and the cost of lasting improvements. If you held the land for more than one year, the gain is long term. If you held it one year or less, it is short term and is taxed like wages (IRS Topic 409).
Long-term gains get federal rates of 0, 15 or 20 percent, depending on your taxable income. For 2025, a single filer paid 0 percent on long-term gains if taxable income was $48,350 or less. Higher earners may also owe the 3.8 percent net investment income tax when modified adjusted gross income passes $200,000 for single filers or $250,000 for joint filers (IRS Topic 559).
Oregon taxes capital gains as regular income, at rates from 4.75 percent to 9.9 percent (Oregon Department of Revenue 2025 tax rate charts).
If you are not an Oregon resident, the closing agent must withhold the least of 4 percent of the price, 8 percent of the gain, or your net proceeds. No withholding is required when the price is $100,000 or less (ORS 314.258). The amount withheld is a credit on your Oregon return.
Recording, title and property tax at closing
Recording fees are set by law and charged by the county office that records deeds. The buyer usually pays to record the new deed. If a mortgage or lien is paid off at closing, the release is recorded too, and the seller usually pays for that.
A title search shows who owns the land and what liens or back taxes sit on it. Owner's title insurance protects the buyer against title problems found later. The price comes from the title company or attorney, and the contract says who pays.
Property tax is split by date. You pay for the part of the year you owned the land, and the buyer pays for the rest. Any back taxes are paid from your proceeds before you get the balance.
How selling to a cash buyer changes the costs
A cash sale has no lender, so there are no loan fees, no appraisal and no financing delays. When you sell to EasyLotBuyer, we pay the closing costs, and you pay no fees or commissions. We can close in as few as 7 days, and we send a cash offer within 24 hours.
We also buy land with back taxes, liens, title problems or no road access, and land held by heirs or an estate. Back taxes are paid at closing from the sale. Tax on your gain is still yours to report, so keep your closing statement for your return. Get a cash offer for your Oregon land.
Sources
- 1. oregonlegislature.gov
- 2. washingtoncountyor.gov
- 3. oregonlegislature.gov
- 4. oregon.gov
- 5. irs.gov
- 6. irs.gov
Rules and fees change; check with the county before you act on them.
Selling Cost Questions in Oregon
Does Oregon have a real estate transfer tax?
Not at the state level. State law bars new local transfer taxes. Washington County kept its older tax of $1 per $1,000 of the price.
Does Oregon withhold tax when an out-of-state owner sells land?
On sales over $100,000, the closing agent must withhold the least of 4 percent of the price, 8 percent of the gain, or the net proceeds. It is credited on your Oregon return.
What closing costs does a seller pay in Oregon?
Usually no transfer tax, except the Washington County tax of $1 per $1,000 if the contract puts it on you, plus payoff of any liens or back taxes and the seller's share of the year's property tax. Title and closing fees are split as the contract says.
Do I owe capital gains tax when I sell land in Oregon?
Yes, if there is a gain. Federal tax applies, and Oregon taxes the gain as regular income at 4.75 to 9.9 percent. Nonresident sellers may have tax withheld at closing on sales over $100,000.
Who pays closing costs when I sell land for cash?
It depends on the contract. When you sell to EasyLotBuyer, we pay the closing costs and you pay no fees or commissions. Back taxes, if any, are paid from the sale at closing.
Are back taxes paid at closing?
Yes. The closing agent pays delinquent property taxes and recorded liens from the sale proceeds, and you receive the balance. You can sell land that has back taxes.