Oregon Confirms $1.41 Billion Revenue Surplus
Taxpayers to receive 9.863% “kicker” credit on 2025 state tax returns
Oregon taxpayers will see a credit on their 2025 state income tax returns after the Oregon Office of Economic Analysis (OEA) confirmed a $1.41 billion revenue surplus for the 2023–2025 biennium.
The surplus triggers the state’s unique “kicker” law, which requires excess revenue collected above forecasted levels to be returned to taxpayers. Rather than mailed checks, Oregonians will receive the surplus as a credit applied to their 2025 state personal income tax returns, filed in 2026.
The Oregon Department of Revenue (DOR) said the kicker will either increase taxpayers’ refunds or reduce the amount owed when filing.
How the kicker works
To qualify, taxpayers must have filed both a 2024 and a 2025 Oregon personal income tax return. The kicker credit equals 9.863% of a taxpayer’s 2024 state income tax liability before credits, based on line 24 of Form OR-40.
Those who claimed a credit for taxes paid to another state must subtract that amount before calculating the credit.
The Department of Revenue offers an online “What’s My Kicker?” calculator on its Revenue Online portal. Taxpayers can use it by entering their name, Social Security number, and filing status for 2024 and 2025.
Even taxpayers with no filing obligation for 2025 must file a 2025 return in order to claim their credit.
Filing and donation options
Full-year Oregon residents will claim the credit on Form OR-40; part-year residents on Form OR-40-P; and nonresidents on Form OR-40-N. Composite and fiduciary-income filers are also eligible.
Taxpayers should note that the state may apply all or part of the kicker to pay existing debts, including back taxes, court fines, child support, or state loans.
Oregonians may also donate their entire kicker credit to the Oregon State School Fund, which supports K–12 public education. Partial donations are not allowed.
Alternatively, taxpayers can choose to donate part or all of their refund to one or more of 29 approved charities through the state’s Charitable Checkoff program using Form OR-DONATE.
Filing help and next steps
Taxpayers who have not yet filed their 2024 Oregon return are encouraged to do so to ensure eligibility for next year’s kicker. The DOR offers several free filing options, including Direct File Oregon and IRS-aligned software for qualifying filers.
The department plans to announce the start date for 2025 tax filings in January and will continue offering Direct File Oregon as a no-cost e-filing option. Officials recommend filing electronically with direct deposit for the fastest processing and payment.
For more information and official resources, visit the Oregon Department of Revenue website at www.oregon.gov/dor.