Tax Kicker For 2025

The Oregon Office of Economic Analysis (OEA) has confirmed a more than $1.41 billion revenue surplus in the 2023-2025 biennium, triggering a tax surplus credit, or “kicker,” for the 2025 tax year.The surplus will be returned to taxpayers through a credit on their 2025 state personal income tax returns filed in 2026. It is not sent to taxpayers in a check. The kicker credit will either increase a taxpayer's Oregon state income tax refund or decrease the amount of state taxes they owe.

Only taxpayers who filed a tax year 2024 return and also file a tax year 2025 return can receive a kicker. The credit is a percentage of Oregon personal income tax liability for the 2024 tax year. Taxpayers who have not yet filed a 2024 tax return, should file now. That will allow them to claim their kicker credit when they file their 2025 tax return next year.

To calculate the amount of their credit, taxpayers can multiply their 2024 personal income tax liability before any credits—line 24 on the 2024 Form OR-40 filed earlier this year—by 9.863 percent.

This percentage is determined and certified by OEA. Taxpayers who claimed a credit for tax paid to another state would need to subtract the credit amount from their liability before calculating the credit. Personal income taxpayers can also determine the amount of their kicker using a “What’s My Kicker? calculator available on Revenue Online. To use the calculator, taxpayers will need to enter their name, Social Security Number, and filing status for 2024 and 2025. Taxpayers who don't have a filing obligation for 2025, still must file a 2025 tax return to claim their credit.

The 2025 Oregon personal income tax return instructions will include detailed information on how to claim the credit. Full-year Oregon residents will use Form OR-40. Part-year residents will use Form OR-40-P. Non-residents will use Form OR-40-N. Composite and fiduciary-income tax return filers are also eligible. Taxpayers should keep in mind that the state may use all or part of their kicker to pay any state debt they owe. These debts can include taxes due for other years, child support, court fines, or school loans.

Taxpayers can donate their kicker to the Oregon State School Fund for K-12 public education, but they must donate the entire amount. The donation is permanent and cannot be taken back. Taxpayers also have the option of donating part or all their refund to any or all the 29 charities approved by the Charitable Checkoff Commission. Taxpayers use Form OR-DONATE to designate their donation to charity. For more information, go to the Oregon surplus “kicker” credit page of the Department of Revenue website.

Taxpayers that haven’t filed their 2024 Oregon tax return can still file electronically using tax preparation software or Direct File Oregon. Free tax preparation services are available for both federal and Oregon tax returns. Some companies offer free software use and e-filing for eligible taxpayers. Links to the software and free offers can be found on the Department of Revenue website. Information about free tax preparation services is also available on the website.

The Department of Revenue plans to announce the date taxpayers can start filing 2025 Oregon tax returns in January. The department will continue to offer Direct File Oregon as an option for taxpayers to electronically file their 2025 returns for free. The fastest way for taxpayers to claim and receive their kicker will be to file electronically and use direct deposit to receive their refund.

Visit www.oregon.gov/dor to get tax forms, check the status of your refund, or make tax payments; call 800-356-4222 toll-free from an Oregon prefix (English or Spanish); 503-378-4988 in Salem and outside Oregon; or email questions.dor@oregon.gov.