Thinking about how your Bend property taxes are calculated? You are not alone. Taxes can feel confusing when the market moves fast, and Oregon’s rules add a few extra layers. The good news is you can understand your bill by learning how Real Market Value, Maximum Assessed Value, and the 3 percent limit work together in Deschutes County. This guide breaks it down in plain language and shows what to expect as a buyer or seller. Let’s dive in.
RMV, MAV, and the 3 percent cap
Real Market Value (RMV)
Real Market Value is the county assessor’s estimate of what a willing buyer would pay a willing seller as of the assessment date, usually January 1. It reflects market conditions, not just last year’s taxes. The assessor determines RMV using state guidelines and local data.
Maximum Assessed Value (MAV)
Maximum Assessed Value is the number most taxes are based on. MAV is not the same as market value. It is a capped value set by Oregon law that usually can only rise by up to 3 percent per year. In a rising market, MAV often ends up much lower than RMV, especially for long-time owners.
The 3 percent limitation
Oregon’s system limits most annual MAV increases to 3 percent. Your MAV can increase more than 3 percent only when certain events trigger a reassessment. When that happens, the assessor may set MAV to match current RMV for the portion of value affected, then the 3 percent limit applies again in future years.
From values to your tax bill
Step 1: Annual valuation and notice
Each year the assessor estimates your RMV as of January 1. Deschutes County mails an assessment notice with RMV and MAV. Review it when it arrives. This is your window to ask questions or appeal if something looks off.
Step 2: Apply the 3 percent limit
If nothing triggered a reassessment, your new MAV is last year’s MAV plus up to 3 percent. In high-growth periods, RMV may jump faster, which means the gap between RMV and MAV grows.
Step 3: Subtract exemptions
If you qualify for exemptions, the county subtracts them from MAV to get your taxable assessed value. Common examples include the Oregon homeowner or disabled veteran exemption, which can reduce taxable assessed value by up to $50,000 for qualifying owner-occupied homes.
Step 4: Multiply by local levy rates
Your taxable assessed value is multiplied by the combined levy rates for your property’s taxing districts. Rates are expressed as dollars per $1,000 of assessed value. The total from the city, county, schools, fire, and other districts produces your annual tax bill.
Example calculation
- Prior year MAV: 400,000
- This year RMV: 600,000
- New MAV with 3 percent cap: 400,000 × 1.03 = 412,000
- If you qualify for a $50,000 exemption: taxable assessed value = 412,000 − 50,000 = 362,000
- If your combined levy is $20 per $1,000: tax = 20 × (362,000 ÷ 1,000) = 7,240
Actual levy rates and exemptions vary by parcel. Use this only as an illustration of the mechanics.
What resets MAV in Bend
Change in ownership
Buying or transferring a property usually triggers the assessor to reset MAV to current RMV for the property. This often leads to a higher assessed value than the prior owner had, which means a higher tax base in the following tax year.
New construction or improvements
New construction, additions, and significant remodels are typically added at assessed value and can raise your MAV beyond the usual 3 percent. The newly added value becomes part of your tax base going forward.
Parcel changes and other events
Lot splits, certain transfers, and other specific changes can also reset or adjust MAV. If you plan a change like this, expect the assessor to review and update your assessment.
Buyers: set the right expectations
If you are buying in Bend, plan for your MAV to reset to current RMV after the purchase. The seller’s tax bill likely reflects a lower MAV that grew slowly under the 3 percent cap. Your future taxes may be higher than what you see on the current statement. Build this into your budget, especially if the home’s market value has risen more quickly than 3 percent per year.
Helpful tips for buyers:
- Ask for an estimate that assumes MAV resets to current RMV or the purchase price, minus any exemptions you plan to claim.
- Review the annual assessment notice after you buy and calendar appeal deadlines in case corrections are needed.
- If you plan renovations, factor in how added value could increase your assessment.
Sellers: explain MAV vs. RMV clearly
If you have owned your home for a while, your MAV may be well below today’s market value. That gap can make your current taxes look low. Be prepared to explain this to buyers so they understand why their future bill may be higher. Disclose any exemptions you receive and note that buyers must qualify and apply for exemptions themselves.
Practical steps for sellers:
- Share the latest assessment notice that shows RMV and MAV.
- Offer a simple explanation of the 3 percent cap and why your taxes may not predict the buyer’s future taxes.
- If you recently completed improvements, keep records and permits handy in case the buyer has questions about assessed value.
Timing and cashflow basics
Oregon uses an assessment date of January 1 for property condition and ownership. Property taxes are billed annually, and many counties collect in installments. In a sale, tax responsibilities are typically prorated at closing. Ask your escrow team how local due dates and proration will work for your transaction, and verify timing with the Deschutes County Treasurer.
Why taxes vary across Bend
Different taxing districts
Two similar homes in different parts of Bend can have different tax bills. That is because properties sit in different combinations of city, county, school, fire, library, community college, and special districts. Voter‑approved bonds and local option levies also affect rates.
Rapid appreciation
Bend has experienced strong market appreciation at times. When market values rise quickly, RMV can pull ahead of MAV. That creates a persistent gap that often lasts until a reassessment event such as a sale or new construction.
New development
As neighborhoods grow with new homes or high‑value projects, district levies and the tax base can shift. Your individual bill still comes down to your parcel’s MAV, exemptions, and the rates for your specific districts.
How to check your numbers
You can verify your property’s details and run your own estimate using county resources.
- Find your RMV and MAV. Use the Deschutes County Assessment and Taxation property search to view your record, prior values, and any exemptions on file.
- Review your assessment notice. It arrives annually and includes your RMV, MAV, and instructions for questions or appeals.
- Estimate your taxes. Start with MAV, subtract any exemptions to get taxable assessed value, then multiply by the combined levy rate for your parcel as dollars per $1,000 of value.
- Expect changes after a sale or remodel. If you are buying or improving a home, plan for a potential reassessment that may increase your tax base.
Quick checklists
Buyer checklist
- Get an estimate that assumes MAV resets to current RMV or purchase price.
- Verify current RMV, MAV, and exemptions on the county record.
- Review your first assessment notice after closing and note appeal deadlines.
- Budget for future changes if you plan additions or major remodels.
Seller checklist
- Gather your latest assessment notice showing RMV and MAV.
- Disclose any exemptions you receive and clarify they do not transfer automatically.
- Explain the 3 percent cap so buyers understand why their future taxes may differ.
- Keep permits and records for recent improvements in case of valuation questions.
Bottom line for Bend homeowners
Your Deschutes County property tax bill is based on MAV, not just what your home could sell for. The 3 percent cap protects you from large year‑to‑year jumps, but a purchase, remodel, or other change can reset or increase your assessed value. When you understand RMV, MAV, exemptions, and local levy rates, you can plan your budget, price your home with confidence, and avoid surprises after closing.
If you want help estimating your post‑purchase taxes or explaining MAV and RMV to buyers, reach out to Kenzie Carlstrom. You will get clear guidance and a simple plan for your situation.
FAQs
Why is my Bend tax bill lower than recent sale prices nearby?
- In Oregon, MAV usually increases by only up to 3 percent per year, so long‑time owners often pay taxes on a value far below today’s RMV or sale prices.
Will my property taxes go up right after I buy in Bend?
- A change in ownership usually resets MAV to current RMV, which often increases the assessed base and the next year’s tax bill. Build this into your budget.
Do homeowner or veteran exemptions transfer when a home sells?
- No. Exemptions do not transfer automatically. The new owner must qualify and apply to receive an exemption on the property.
Can I appeal my assessed value in Deschutes County?
- Yes. Start with an informal review through the assessor’s office, then use the formal appeal process within the deadlines listed on your assessment notice.
What improvements could change my assessed value?
- New construction, additions, and significant remodels can increase assessed value. The newly added value is typically assessed and added to your MAV going forward.
