SALEM, Ore. (Nov 7, 2025) — Oregon taxpayers will once again receive a “kicker” credit after the state confirmed a more than $1.41 billion revenue surplus for the 2023–2025 biennium, the Oregon Office of Economic Analysis (OEA) announced this week.
The surplus, certified on Nov. 1, will trigger a tax surplus credit for the 2025 tax year, meaning taxpayers will see the amount returned through a credit on their 2025 state personal income tax returns filed in 2026. The money will not be sent as checks.
“The kicker credit will either increase a taxpayer’s Oregon state income tax refund or decrease the amount of state taxes they owe,” the Department of Revenue said in a release.
To qualify for the kicker, taxpayers must have filed a 2024 return and must also file a 2025 return. The credit will be worth 9.863% of each taxpayer’s 2024 Oregon personal income tax liability, according to OEA.
For example, a taxpayer with a $5,000 Oregon income tax liability in 2024 would receive a $493 kicker credit on their 2025 return.
Taxpayers who have not yet filed their 2024 return are encouraged to do so, as filing now ensures they can claim the credit when submitting their 2025 return.
Residents can calculate their exact credit using the Department of Revenue’s online tool, the “What’s My Kicker?” calculator, available through Revenue Online. To use the calculator, taxpayers will need to enter their name, Social Security number, and filing status for both 2024 and 2025.
Taxpayers who do not have a filing obligation for 2025 must still file a 2025 tax return to claim the credit. Detailed instructions will be included in the 2025 Oregon personal income tax return guide. Full-year residents will use Form OR-40, part-year residents will use Form OR-40-P, and nonresidents will use Form OR-40-N. Composite and fiduciary filers are also eligible.
The Department of Revenue noted that “the state may use all or part of the kicker to pay any state debt” a taxpayer owes, including unpaid taxes, child support, court fines, or school loans.
Taxpayers can also choose to donate their entire kicker to the Oregon State School Fund, which supports K-12 public education. “The donation is permanent and cannot be taken back,” the department said. Partial or full refunds can also be donated to any of the 29 charities approved by the Charitable Checkoff Commission using Form OR-DONATE.
The 2025 tax filing season will open in January, with the Department of Revenue continuing to offer Direct File Oregon as a free electronic filing option. Officials said filing electronically and selecting direct deposit will be the fastest way to receive a refund or kicker credit.
Taxpayers who still need to file their 2024 return can do so electronically using commercial tax preparation software or Direct File Oregon. Free filing options are available for eligible taxpayers, and links to free software and tax help can be found on the Department of Revenue website.
How Oregon’s Kicker Works
The state’s unique “kicker” law dates back to 1979, when lawmakers approved a measure requiring the state to return surplus revenue if actual collections exceeded forecasts by more than 2%. Voters cemented the policy into the Oregon Constitution in 2000, also creating the option for taxpayers to donate their kicker to public schools.
If revenue collections surpass the forecast by more than 2% after a biennium ends, the surplus is refunded to taxpayers as a credit on returns filed in the even-numbered year of the following biennium.
The 2023–2025 surplus marks the fourth-largest kicker in Oregon history, with actual revenues exceeding projections by $1.41 billion.
The 2011 Legislature changed the method of payment from paper checks to a refundable tax credit claimed on income tax returns.
More information, including the “What’s My Kicker?” calculator, frequently asked questions, and historical data on past kicker amounts, is available on the Oregon Department of Revenue website at www.oregon.gov/dor.
Taxpayers with questions can also call 800-356-4222 toll-free from an Oregon prefix (English or Spanish), 503-378-4988 in Salem or outside Oregon, or email questions.dor@oregon.gov.
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