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The Oregon estate tax exemption, like the federal exemption, is a tax exemption that reduces the amount of estate taxes that must be paid. At the state level, the exemption is $1,000,000; in other words, you will pay no Oregon estate tax on estate transfers up to that value.
The Oregon estate tax is a tax that is levied on the transfer of the estate of a deceased person. It is separate from the federal estate tax, which is a tax on the transfer of the estate of a deceased person at the federal level. The Oregon estate tax applies to estates with a value of more than $1 million.
Capital gains tax is charged only on the appreciation that occurs after that step up in basis to the date of death value, if the asset has passed through the decedent's estate. It is not charged on the appreciation that took place during the decedent's life if the asset passes through the deceased person's estate.
Oregon does not have an inheritance tax. The state's estate tax used to be called an inheritance tax, but was still an estate tax in practice. If you're inheriting property or money from someone who lives out of state, make sure to check local laws.