Oregon Lodging Tax Increase Takes Effect in 2027
Travelers and operators should prepare for the rate to rise to 2.75 percent for stays occurring on or after January 1, 2027.
Updated on Oct. 30, 2026 in Taxes
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The Oregon Department of Revenue has finalized a temporary regulation to manage state lodging tax calculations during the upcoming rate transition. This rule impacts travelers and lodging operators for stays that overlap with the scheduled rate increase on January 1, 2027.
Why it matters
The regulation ensures clarity for billing stays that cross the January 1 threshold, preventing confusion as the state transitions to a higher tax burden. Understanding how these charges are split is essential for accurately budgeting travel costs or managing property revenue.
The state lodging tax is set to rise from 1.5 percent to 2.75 percent starting January 1, 2027. For stays spanning this date, operators must calculate the tax separately for each portion of the occupancy.
The players
Oregon Department of Revenue
The state agency responsible for administering tax laws and issuing regulations for Oregon residents and visitors.
The details
For any lodging occupancy that begins before and ends after the January 1, 2027, effective date, the tax must be prorated by day. The 1.5 percent rate applies to each day occurring on or before December 31, 2026, while the new 2.75 percent rate applies to every day beginning on or after January 1. This split calculation ensures the correct tax amount is collected for each individual portion of a traveler's stay.
Timeline
December 31, 2026: The final day the current 1.5 percent state lodging tax rate is in effect.
January 1, 2027: The date the state lodging tax rate increases to 2.75 percent.
Money Landscape
This regulation prepares the state for the transition to a 2.75 percent tax rate, marking a departure from the long-standing 1.5 percent rate. The move establishes a clear framework for handling multi-day bookings that cross the new policy's effective date.
If you are planning an extended stay in Oregon that crosses into January 2027, prepare for a higher tax percentage on your bill for the portion of your trip in the new year. Review your lodging invoices carefully to ensure the tax rate is applied correctly to the specific dates of your occupancy.
The takeaway
Travelers and lodging operators should note that tax rates will shift mid-stay for bookings spanning the New Year in 2027. Maintain clear documentation of your arrival and departure dates to verify that your lodging tax is calculated according to the new regulatory standards.
Further reading
For broader guidance on state-level tax policies, visit our Taxes section.
Source note: This article includes information reported by Bloombergtax.
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Do you support increasing the state lodging tax rate to generate more tax revenue?
