How it works
- 1When Oregon’s actual revenue exceeds the official forecast by more than 2%, the entire surplus is returned to taxpayers.
- 2The state announces a kicker percentage applied to your prior-year Oregon tax liability.
- 3You claim it as a credit when you file the following year’s return.
- 4It reduces tax owed, or increases a refund, on that return.
The part people get wrong
- It is not a check. Oregon paid the kicker as a direct refund many years ago and has issued it as a credit since. Nothing arrives in the post.
- It is based on last year, not this year. A big income year now does not increase this year’s kicker; the prior year’s liability drives it.
- You must have filed a return for the prior year to have a liability to apply the percentage to.
- It can be applied against a balance owed — including, in some circumstances, being offset against outstanding state debt.
- You can donate it to the Oregon State School Fund on the return, if you choose to.
Working out roughly what yours is
Take your prior-year Oregon tax liability — not your refund, not your withholding, the actual tax line on the return — and apply the announced percentage. For a household with a $6,000 prior-year Oregon liability and a 9.863% kicker, that is a credit of roughly $592. The Oregon Department of Revenue publishes a lookup tool that gives your exact figure from your filing history.
I did not file last year. Do I still get it?
You need a prior-year Oregon return with a liability for the percentage to apply to. If you did not file, filing that year is the route to the credit — and often worth doing for other reasons anyway.
Is there a kicker every year?
No. It triggers only when revenue exceeds the forecast by more than 2%, which has happened frequently in recent biennia but is not guaranteed.
Is the kicker taxable?
It reduces your Oregon tax. Whether a state tax benefit produces federal taxable income depends on whether you deducted state taxes federally in the earlier year — the tax benefit rule. For most people taking the standard deduction, the answer is no.
Can it be taken to pay something else?
The credit can be applied against certain outstanding state obligations, including child support and other state debts, before any refund is issued.
Not sure which of these apply to you?
Most Portland-area households owe at least two of these and know about one. An appointment sorts out which returns you actually need to file.
Written by
Enrolled Agent, Oregon Licensed Tax Consultant
License number: Enrolled Agent 00160070-EA · Oregon Licensed Tax Consultant 35746-C
Heather has spent more than a decade preparing individual and business returns across the Portland metro and the Columbia Gorge, and holds unlimited rights to represent taxpayers before the IRS.
Last reviewed
This page is general information about Oregon, Washington and federal tax rules, not advice about your own return. Thresholds and rates change every year. Figures were verified as of August 2026 — check the linked official sources, or talk to us about your situation.