Taxpayers to Receive Nearly 10% Kicker Credit After Oregon’s $1.4 Billion Revenue Surplus
After Oregon delivered a revenue surplus of over $1.41 billion in the 2023-2025 biennium, triggering a tax surplus credit, the Oregon Office of Economic Analysis (OEA) confirmed there will be a “kicker” for the 2025 tax year.
Oregon 2025 Kicker Tax Credit
Oregon’s kicker tax becomes payable when, after an even-numbered year biennium ends, actual revenue collected exceeds the forecast amount by over 2 percent.
The kicker is refunded to taxpayers as a tax credit on their state personal income tax returns, and no check is sent to them.
The kicker credit either increases a taxpayer’s Oregon state income tax refund or decreases the amount of state taxes they owe.
On November 1 this year, OEA certified that revenue collected for the 2023-2025 biennium (ended June 30, 2025) exceeded their forecast by $1.41 billion, and, as a result, that Oregon taxpayers can receive a kicker credit on their tax year 2025 returns filed in 2026 equal to 9.863 percent of their Oregon personal income tax liability for tax year 2024.
This is the fourth-largest surplus revenue amount in state history.
To calculate your Oregon Kicker credit:
- Multiply your 2024 personal income tax liability before any credits (line 24 on the 2024 Form OR-40 from earlier this year) by 9.863 percent. Taxpayers who claimed a credit for tax paid to another state must subtract the credit amount from their liability before calculating the credit.
- Make use of free tax preparation services.
- Use the Department of Revenue’s “What’s My Kicker?” calculator (you will need to enter your name, Social Security Number, and filing status for 2024 and 2025).
Information about the Oregon Kicker Refund:
- Taxpayers who don’t have a filing obligation for 2025 still must file a 2025 tax return to claim their credit.
- The state may use all or part of your kicker to pay any state debt you owe, including taxes due for other years, child support, court fines, or school loans.
- You can donate your kicker to the Oregon State School Fund for K-12 public education, but it must be the entire amount.
- You can donate part or all of your refund to any or all of the 29 charities approved by the Charitable Checkoff Commission using the OR-DONATE form.
- Direct File Oregon lets taxpayers file their 2025 returns electronically for free. It is the fastest way to claim and receive your kicker: use direct deposit to get your refund.
The Department of Revenue plans to announce the date taxpayers can start filing 2025 Oregon tax returns in January.