For real estate agents and homeowners in Salem, Oregon, understanding the nuances of property taxes is essential for making informed decisions. Property taxes can significantly impact housing affordability and investment returns. Use this guide to understand the 2025 Salem property tax rates, their calculation methods, and upcoming changes, so you can advise your clients with confidence.

Salem Property Taxes in 2025

Navigating the world of property taxes can feel complex, but it boils down to a few key components. In Salem, which spans both Marion and Polk counties, property taxes are a critical source of funding for essential community services. Let’s break down how they work.

How are property taxes in Salem calculated?

The amount of property tax a homeowner pays is based on two primary factors: the property’s assessed value and the tax rates set by various local taxing districts.

According to the Oregon Department of Revenue, your property tax is calculated on its Assessed Value (AV). This is the lower of two figures: the Real Market Value (RMV) and the Maximum Assessed Value (MAV).

  • Real Market Value (RMV): This is the price your property would likely sell for on the open market as of January 1st of the assessment year. County assessors determine this value by analyzing market data and trends of similar properties.
  • Maximum Assessed Value (MAV): Established by Measure 50, the MAV was initially set based on the 1995-96 RMV. Critically, the MAV is not allowed to increase by more than 3% per year, except for specific events like new construction or rezoning.

This system taxes you on the lower of the two values, protecting homeowners from sudden, steep increases in property taxes due to a rapidly growing real estate market.

Important dates for Salem property taxes

Staying on top of deadlines is key to avoiding penalties. Here are the important dates for property taxes in Oregon:

  • January 1: The county assessor assesses and determines property values.
  • March 15: Must file a return for any taxable personal property.
  • October 25: County tax collectors mail property tax statements. If you haven’t received your statement by early November, it’s wise to contact your county’s assessment and taxation office.
  • November 15: This is the due date for property tax payments. You have a few options:
    • Pay in full by November 15 to receive a 3% discount.
    • Pay two-thirds of the total by November 15 to receive a 2% discount.
    • Pay in three installments with no discount, due November 15, February 15, and May 15.

Where do my Salem property taxes go?

Property tax revenue is the lifeblood of local services. The money you pay funds schools, law enforcement, fire departments, and infrastructure maintenance.

Specifically for 2025, a portion of Salem’s property taxes will be directed by a newly approved local option levy to support the Salem Public Library, parks and recreation services, and the Center 50+ senior center. This dedicated funding frees up general funds to be used for other essential services like police and fire protection.

What are the current Salem property tax rates?

The median effective property tax rate in Salem is approximately 0.98%. However, the exact rate you pay depends on your specific tax rate district, which is a combination of levies from the city, county, school district, and other local entities.

Will property taxes in Salem rise this year?

Yes, Salem residents will see an increase in their property taxes. In the May 2025 election, voters approved a five-year local option levy to fund community services.

This levy adds a rate of $0.98 per $1,000 of assessed property value. For a home with a typical assessed value of $224,000, this translates to an increase of about $220 per year, or just over $18 per month. This change will first appear on the property tax statements mailed in October 2025.

Nearby cities and their property tax rates

To give your clients a comprehensive view of the Salem real estate market, it’s helpful to know how its property tax rates compare to neighboring communities. Here’s a look at the median effective tax rates in cities within Polk County:

  • Salem: 0.98%
  • Independence: 0.85%
  • Monmouth: 0.84%
  • Dallas: 0.69%
  • Falls City: 0.58%
  • Sheridan: 0.49%

These figures highlight the variation in property tax burdens across the region, an important factor for potential buyers.

Remaining aware of Salem property taxes

For real estate agents, keeping up with property tax information is part of providing exceptional service. Encourage your clients to review their annual property tax statements carefully. They can find detailed information about their property’s assessed value and tax breakdown on the Marion County or Polk County assessor’s websites.

Additionally, Oregon offers programs that can help eligible individuals, such as the Senior and Disabled Citizen Deferral Program, which allows qualifying homeowners to delay paying their property taxes. As a real estate professional, you should equip yourself with the knowledge of the different options and programs available to homeowners.

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FAQ

Yes, homeowners in Oregon can appeal their property’s assessed value through their county’s Board of Property Tax Appeals if they believe it is incorrect.

Yes, Oregon provides property tax exemptions for qualifying disabled veterans or their surviving spouses.

Paying two-thirds of your property tax by the November 15 deadline qualifies you for a 2% discount, but any smaller partial payment forfeits all discounts.

If you miss all payment deadlines, interest will accrue on the delinquent amount, and the county can begin foreclosure proceedings on the property.

Yes, the new local option levy of $0.98 per $1,000 of assessed value applies to all real property within Salem, including commercial and residential properties.