Albany Housing Construction Excise Tax Takes Effect January 1, 2026

Albany, OR. — Beginning January 1, 2026, the City of Albany will implement a new Housing Construction Excise Tax (CET) designed to generate dedicated revenue for affordable and needed housing across the community.

The tax follows adoption by the Albany City Council on August 13, 2025, and reflects priorities outlined in the city’s Housing Implementation Plan, which has guided housing policy decisions over the past two years.

The CET is a one-time fee applied to building permits for new development that adds livable residential space or occupiable commercial and industrial space. The tax applies to improvements valued over $50,000 and will be phased in over a three-year period.

For residential construction, the CET rate will begin at 0.25% of permit value in 2026, increasing to 0.5% in 2027 and 0.75% in 2028, after subtracting the first $50,000 in value. Under the adopted structure, a $150,000 residential improvement would result in a $250 CET fee in 2026.

Commercial and industrial construction will be assessed at higher rates, starting at 0.33% in 2026, rising to 0.66% in 2027, and reaching 1.0% in 2028.

Revenue generated by the CET will be used to support financial incentive programs addressing Albany’s housing needs. At least 15% of CET revenue collected from residential construction will be dedicated to expanding homeownership opportunities for low- to moderate-income households.

The Albany Community Development Commission and City Council are expected to work collaboratively over the next year to develop and refine the programs funded by CET revenue.

Additional information about the Housing Construction Excise Tax and Albany’s Housing Implementation Plan is available through the city’s website.