Oregon's kicker refund, explained plainly for 2026

You heard a friend say their state refund jumped because of "the kicker," then you opened your Oregon Form OR-40 and wondered which year's numbers the state uses and where the credit shows up. This walkthrough spells out when the kicker triggers, how Oregon calculates your amount, how it flows through your return, and what can change it on the way to your bank account or check. It also points to the state offices and timeframes you can rely on during filing season in Oregon.

What actually triggers the kicker, and which year's tax is used?

Oregon's surplus refund, known everywhere in the state as the kicker, is required when actual General Fund revenue for a two-year budget period comes in at least 2 percent above the forecast made at the close of the regular legislative session for that period. If that happens, the surplus is returned to personal income taxpayers as a credit on the return for the kicker year. The percentage is identical for everyone and is applied to the taxpayer's Oregon personal income tax liability for the prior tax year, not the current filing year. 

For returns filed in 2026 for tax year 2025, the certified kicker is 9.863 percent. That percentage is applied to your 2024 Oregon personal income tax liability (before most credits; Oregon's instructions identify the line reference for that year's Form OR-40). The Office of Economic Analysis certified the 9.863 percent figure after closing the 2023-2025 biennium. 

Putting that in numbers: if your 2024 Oregon personal income tax liability was $3,200, your 2025 kicker credit is $3,200 × 0.09863 = $315.62, which will either reduce what you owe for 2025 or increase your 2025 refund. 

Context helps when the percentages change year to year. For the prior filing season, the state refunded a much larger kicker equal to 44.28 percent of 2022 tax liability, claimed on 2023 returns filed in 2024. That unusually high percentage came from the 2021-2023 biennium's surplus size and is documented in the Department of Revenue's personal income tax statistics report. 

Seeing your amount and where it shows on the return

There are two ways Oregon will show you the number that goes on your return. During filing season, the Department of Revenue's "What's My Kicker?" calculator displays your kicker amount after you enter your identifying details. In 2026, agency press materials indicated the tool asks for your name, Social Security number, and your filing status information for the base year and the current return. The calculator displays the exact kicker credit you are eligible to claim on your 2025 return.

If you do not use the tool, Oregon's return instructions include a worksheet that multiplies your 2024 Oregon tax liability by 9.863 percent. The instructions also explain how to handle adjustments such as credits for taxes paid to another state that are included in liability for this calculation. The Department of Revenue's 2025 full-year resident forms and instructions confirm the 9.863 percent rate for this filing year. 

Once calculated, the kicker appears on the personal income tax return for the kicker year as a refundable credit. Oregon emphasizes that the kicker is a credit that either increases your refund or reduces tax you owe; it is not issued as a standalone check unless your overall return results in a refund. 

Oregon also issues a Form 1099-G for the kicker in the year after you file if you itemize on your federal return, and the form will list the total kicker amount even if some or all of it was used to pay tax or other qualifying debt, or if you choose to donate it. 

Will the kicker change my refund timing, and can other agencies take it?

How fast your refund arrives depends on how you file and how you request your refund. For 2026, the Department of Revenue states that e-filed returns with direct deposit generally issue refunds within about two weeks once processing starts in mid-February. Paper returns take longer; in 2026 the department did not begin processing paper returns until March-April due to programming and form-data timing, and paper filers should expect a significantly longer wait. 

Oregon's refund status tool asks for your SSN or ITIN, your filing status, and the exact refund amount shown on your return. The department says 95 percent of taxpayers receive refunds within two weeks when automated processing applies, and notes that interest on Oregon refunds generally begins 45 days after the later of the original due date or your filing date. 

Refunds, including the kicker portion, can be applied to debts. Oregon's offset rules allow the state to apply your refund to certain state debts, such as past-due state taxes, child support, court fines, or debts assigned to the Department of Revenue by other agencies. The agency's kicker page gives examples and clarifies that if you donate the kicker, the department still reports the full credit on Form 1099-G, but offsets to qualifying debts are taken first. 

What if I moved, changed filing status, or want to donate the kicker?

You can claim the kicker even if you no longer live in Oregon, provided you had an Oregon personal income tax liability in the prior year and you file an Oregon return for the kicker year. The Department of Revenue's kicker page addresses nonresidents and part-year residents directly and explains that you must still file an Oregon return for the kicker year to receive the credit. 

When filing status changes between the base year and the kicker year, Oregon requires you to follow the instructions for allocating the base-year liability to the current filer(s). The return instructions cover status changes such as moving from married filing jointly to separate, or vice versa, and your tax software or the state's worksheet will reflect those steps.

If you prefer to support K-12 schools, Oregon lets you donate the entire kicker to the State School Fund on your return. The election must be for the full kicker amount and is irrevocable once made on a properly filed return. Oregon materials and Tax Court decisions describe this as a checkbox or line election on the OR-40 that applies your entire kicker credit to the fund. 

Corporate kickers are handled differently. Since voters approved Measure 85 in 2012, any corporate surplus kicker is not refunded to corporations but is dedicated to K-12 public education through the state's General Fund. That change is now part of Article IX, section 14 of the Oregon Constitution and remains in effect for biennia beginning July 1, 2013 and later. 

Does the kicker affect Portland-area local income taxes?

No. The kicker is a state personal income tax credit that applies on your Oregon Form OR-40. The Metro Supportive Housing Services and Multnomah County Preschool for All personal income taxes are administered separately by the City of Portland Revenue Division. Those local returns are filed and paid with the Revenue Division, not on your Oregon return, and Portland's guidance states these taxes are not included on the Oregon return. The kicker credit on your OR-40 does not carry over to reduce those separate local liabilities. 

Filing choices in Oregon, side by side

Direct File Oregon is free and available through Revenue Online with phone support at 503-378-4988 or 800-356-4222, Monday to Friday 7:30 a.m. to 5 p.m. with phones closed 9 a.m.-11 a.m. Thursdays. The agency's headquarters is the Revenue Building, 955 Center St NE, Salem, and the department notes that cash payments are accepted only at headquarters. 

What if I need help or have to appeal a kicker-related adjustment?

The Department of Revenue's customer service lines follow the hours listed above, and regional field offices are open to the public without an appointment, though appointments are available. If a dispute becomes a tax appeal, most cases start in the Oregon Tax Court Magistrate Division. The court accepts state income tax appeals and lists filing options online or by mail to 1163 State Street, Salem, OR 97301-2563. The filing fee in the Magistrate Division is $50, with fee waivers or deferrals available in appropriate cases. 

Key things to know at a glance

• The kicker is triggered when a biennium's actual General Fund revenue is at least 2 percent above the forecast. For 2025 returns filed in 2026, the certified percentage is 9.863 percent of your 2024 Oregon personal income tax liability. 
• Oregon treats the kicker as a refundable credit on your OR-40. It increases your refund or reduces what you owe for the kicker year; it is not a separate check unless your return results in a refund. 
• You can look up your amount with the state's "What's My Kicker?" calculator; press notices for 2026 indicate you'll be asked for your name, SSN, and filing status information for the relevant years. 
• E-file with direct deposit is typically fastest. Oregon says most e-filed refunds issue within about two weeks once processing is underway, while 2026 paper returns did not begin processing until late March/April. 
• Refunds are subject to offset for qualifying state debts. If you donate the kicker to the State School Fund, the state reports the full kicker on a later Form 1099-G if you itemize federally. 
• You may claim the kicker even if you moved out of Oregon, as long as you had Oregon tax liability in the base year and file the kicker-year return. 
• Local income taxes in the Portland area are filed separately with the City of Portland Revenue Division; they are not part of your Oregon return and are not reduced by the state kicker. 
• Need to talk to a person or pay at the counter? DOR phones run 7:30 a.m.-5 p.m., Mon-Fri and are closed 9-11 a.m. Thursdays. Cash is accepted only at the Salem headquarters at 955 Center St NE. 

Reader Q&A

How do I figure out my kicker for 2025 returns if I don't have last year's return handy?

Oregon provides a "What's My Kicker?" calculator each filing season. For 2026, agency communications say the tool asks for your name, SSN, and your filing status information and then displays your credit amount. If you prefer to do the math yourself, multiply your 2024 Oregon tax liability by 9.863 percent and enter that result on your 2025 OR-40 where instructed. 

Does donating my kicker change whether I get a 1099-G next year?

If you itemize on your federal return and are credited with a kicker, Oregon issues a Form 1099-G the following year showing the full kicker amount even if the credit was donated to the State School Fund or applied to debts. Donation must be for the entire kicker amount and is irrevocable once elected on the return. 

I moved out of Oregon in 2025. Can I still claim the 2025 kicker based on my 2024 liability?

Yes. Oregon's guidance explains that you can claim the kicker if you had a prior-year Oregon personal income tax liability, but you must file an Oregon return for the kicker year to get the credit. The return instructions address how to handle part-year and nonresident scenarios. 

Will my state kicker reduce what I owe for the Portland-area local income taxes?

No. The Metro Supportive Housing Services and Multnomah County Preschool for All personal income taxes are filed with and paid to the City of Portland Revenue Division and are not part of your Oregon Form OR-40. The kicker credit applies on your state return only. 

When you are choosing how to file, check the table above for cost and timing differences. The state's free filing option, published processing windows, and phone hours give you a clear sense of what to expect so you can select the method that fits your situation and timeline.

Published: September 29, 2026 · Reviewed by the State Of Oregon editorial team