Oregon’s “Kicker” is one of the most unique, powerful, and poorly understood financial mechanisms in American personal finance. It’s written into the state constitution. It fires automatically. And when it does, it returns billions of dollars to ordinary Oregonians — with no application required. This is the only guide you’ll ever need.

The Rebate That’s Guaranteed by the Oregon Constitution

In most states, whether you get a tax rebate depends on whether politicians decide to approve one. Not in Oregon.

Oregon’s Kicker — technically called the “Oregon Surplus Refund” — is a constitutional mandate. Voters approved it in 1980 and enshrined it in the Oregon Constitution in 2000. Once triggered, it cannot be cancelled without an emergency vote. It doesn’t depend on which party controls the legislature. It doesn’t require a new bill. It fires automatically.

The mechanism is simple: if Oregon’s actual revenue for a two-year budget period exceeds the official revenue forecast by more than 2%, the entire surplus is returned to taxpayers as a credit on their state income tax returns.

In 2023, the Kicker returned $5.61 billion to Oregonians — the largest in state history.

In 2025 (filed in 2026), it returned another $1.41 billion.

These are not one-time political gifts. They are legally guaranteed money that millions of Oregonians are owed — yet every cycle, a significant portion goes unclaimed because people don’t know they qualify, don’t know how to calculate their amount, or don’t realize they need to file a return to receive it.

This guide explains everything.

A Brief History: How Oregon Got the Most Unusual Tax Law in America

The Kicker was born out of fiscal frustration. In the 1970s, Oregon experienced the same inflationary surge that hit the rest of the country. State revenues grew rapidly — faster than expected — and many Oregonians felt that excess tax revenue was being quietly absorbed into government budgets rather than returned to citizens.

In 1979, the Oregon Legislature passed the original Kicker law as a statutory measure. When revenues exceeded forecasts by more than 2%, the surplus would be refunded. It was a novel concept, and it triggered almost immediately.

Over the following two decades, the Kicker became a deeply embedded part of Oregon’s political culture — and a persistent point of controversy. Critics argued it prevented the state from building reserves, leaving Oregon vulnerable when revenues dropped. During recessions, the state faced severe budget shortfalls in part because the Kicker had returned surpluses that could have cushioned the blow.

In 2003, after a particularly painful recession exposed the vulnerability, the Oregon Legislature sought to eliminate or modify the Kicker. But by that point, voters had already taken the decision out of legislators’ hands.

In 2000, voters passed Ballot Measure 86 with 62% approval, embedding the Kicker directly into the Oregon Constitution. From that point on, legislators needed an emergency vote — a high bar — to suspend the Kicker. The people of Oregon, in effect, said: “This money is ours by right.”

In 2007, lawmakers succeeded in diverting the corporate portion of the Kicker to a rainy day fund — a compromise that left the personal income portion intact. That compromise remains in place today. When this guide refers to the Kicker, it means the personal income tax Kicker, which goes directly to individual taxpayers.

The Kicker has triggered in:

• 1985–1986
• 1987–1988
• 1991–1992
• 1993–1994 (first under the statutory formula)
• 1995–1996 (biennium: 1993-1995)
• And multiple times since — including the record $5.61B in 2023 and $1.41B in 2025

How the Oregon Kicker Works: The Exact Mechanism

Understanding the Kicker requires understanding Oregon’s biennial budgeting system.

Oregon operates on a two-year budget cycle — a “biennium.” The two-year periods run from July 1 of odd years to June 30 of the following odd year. The current biennium that produced the 2025 Kicker was July 1, 2023 through June 30, 2025.

The Triggering Formula

1. At the start of each biennium, the Oregon Office of Economic Analysis (OEA) publishes an official revenue forecast — the government’s prediction of how much tax money Oregon will collect over the two years.

2. At the end of the biennium (June 30), the OEA measures actual revenue collected.

3. If actual revenue exceeds the forecast by more than 2%, the entire surplus — not just the amount above 2%, but everything above the forecast — is returned to taxpayers.

This is an important nuance: Oregon doesn’t keep the first 2% and return only the excess. Once the 2% threshold is crossed, the entire surplus above forecast is refunded. This makes the trigger somewhat all-or-nothing — a small forecast miss produces nothing, but crossing 2% produces a potentially very large refund.

The 2025 Kicker: The Numbers

On November 1, 2025, the Oregon OEA certified that revenue for the 2023-2025 biennium exceeded forecast by $1.41 billion — the fourth largest surplus in state history.

OEA certified a Kicker percentage of 9.863% of each taxpayer’s 2024 Oregon personal income tax liability.

This means: to calculate your 2025 Kicker, multiply your 2024 Oregon income tax liability (before credits, except the credit for taxes paid to another state) by 0.09863.

Example calculations:

These numbers represent a meaningful financial boost for most Oregonians — the equivalent of several months of utility bills for a typical household.

Historical Kicker Percentages

To give context for the 2025 amount, here are notable historical Kicker credits:

• 2023 Kicker (filed 2024): 44.28% of 2022 tax liability — the largest in history
• 2019 Kicker (filed 2020): 17.171% of 2018 tax liability
• 2017 Kicker (filed 2018): 6.8% of 2016 tax liability
• 2025 Kicker (filed 2026): 9.863% of 2024 tax liability

The percentage varies enormously based on how much revenue exceeded forecast. The 2023 Kicker’s 44.28% was extraordinary — a direct result of unexpectedly strong income tax revenue during the pandemic economic surge. The 2025 rate is more typical historically.

Who Qualifies for the Oregon Kicker?

Eligibility for the Oregon Kicker is straightforward — but the conditions must all be met:

Condition 1: You Must Have Filed a 2024 Oregon Return

You must have filed an Oregon personal income tax return for tax year 2024. This is the “base year” — the year from which your Kicker is calculated.

If you didn’t file a 2024 Oregon return, you cannot claim a 2025 Kicker.

Importantly, this applies even if you’re no longer an Oregon resident. Non-residents who had Oregon income and filed a 2024 Oregon return are eligible.

Condition 2: You Must Have Had a Tax Liability in 2024

Your 2024 Oregon return must show a tax liability before credits (except the credit for income taxes paid to another state). This is typically found on Line 31 of Form OR-40.

If your Oregon tax before credits was zero (for example, because your income was too low), there is no base from which to calculate the Kicker, and you don’t qualify.

Note that “tax liability” is different from whether you owed money or received a refund. If you had Oregon income tax withheld from your paycheck and received a refund, you still had a tax liability — the withholding simply exceeded your liability.

Condition 3: You Must File a 2025 Oregon Return

Even if you no longer live in Oregon and have no Oregon income, you must file a 2025 Oregon personal income tax return to claim the Kicker. The credit is delivered through the return — it’s not a separate check in the mail.

This catches many people off guard. Oregonians who moved out of state in 2025, or who retired and no longer have filing obligations, may assume they don’t need to file. But if they had Oregon tax liability in 2024, they need to file a 2025 return to receive their Kicker.

The Oregon Department of Revenue explicitly states: “Even taxpayers who don’t have a filing requirement [for 2025] must file a 2025 Oregon return to claim the Kicker.”

Who Does NOT Qualify

• Estates and trusts do not qualify for the personal income Kicker (the corporate Kicker is a separate program diverted to the rainy day fund)
• Individuals with zero Oregon tax liability in the base year
• People who didn’t file the base year return (2024 in this case)
• People who file only a 2025 return without having filed a 2024 return

Partial Qualification: The Out-of-State Income Credit Wrinkle

If you paid income taxes to another state on income that was also taxed by Oregon, you may have claimed a credit for taxes paid to another state on your 2024 Oregon return. This credit reduces your Kicker base.

Specifically, your Kicker is calculated on: (2024 Oregon tax liability) minus (2024 credit for taxes paid to another state).

For most Oregon residents who only work in Oregon, this doesn’t apply. But if you work in Washington state and have Oregon withholding (or have business income in multiple states), you may need to account for this.

How to Calculate Your Oregon Kicker

The Oregon Department of Revenue has made this easy with the “What’s My Kicker?” calculator available at revenueonline.dor.oregon.gov.

To use the calculator, you’ll need:

• Your Social Security Number (or ITIN)
• Your filing status on your 2024 return
• Your filing status on your 2025 return (if different)

The calculator will retrieve your 2024 tax liability from state records and compute your Kicker amount automatically.

Manual calculation:

If you prefer to calculate it yourself:

1. Find Line 31 on your 2024 Oregon Form OR-40 — this is your Oregon tax before any credits
2. Subtract any credit for income taxes paid to another state (if applicable)
3. Multiply the result by 0.09863

The result is your 2025 Kicker credit.

Filing status changes:

If your filing status changed between 2024 and 2025 (for example, you got married, divorced, or a spouse died), the calculation becomes more complex. The Oregon DOR provides detailed worksheets in the instructions for Form OR-40. The general principle is that the Kicker must be allocated based on each individual’s share of income.

How and When You Receive the Kicker

The Kicker is not a separate check that arrives in the mail. It is a refundable credit applied to your Oregon income tax return. This means:

• If you have an Oregon tax liability for 2025, the Kicker credit reduces it
• If the Kicker credit exceeds your 2025 Oregon tax liability, the difference is refunded to you — either by direct deposit or mailed check, depending on your filing preference

Timeline for 2026 filing season:

• January 26, 2026: Oregon began accepting e-filed 2025 returns
• February 17, 2026: Oregon DOR began issuing refunds for e-filed returns (earlier estimates suggested February 18, but the official window opened around this time)
• Early April 2026: Refunds for paper-filed returns began processing
• April 15, 2026: Filing deadline (extensions available)

Oregon’s strong recommendation in 2026: File electronically. Due to delays in receiving federal tax forms from the IRS, the Oregon DOR was significantly delayed in processing paper returns in 2026. “If you file a paper return, you’re going to face a significant delay in receiving your refund,” said Megan Denison, administrator of Oregon’s Personal Tax and Compliance Division. E-filers should expect their Kicker within about two weeks of filing.

The Federal Tax Question: Is the Oregon Kicker Taxable Income?

This is where it gets nuanced — and where many Oregonians get surprised. The short answer: it depends on whether you itemized your federal deductions.

If you took the standard deduction on your federal return: Your Oregon state income taxes were never deducted on your federal return. Therefore, the Kicker — which effectively returns a portion of those taxes — has no federal tax consequence. It is not taxable income on your federal return.

If you itemized federal deductions: You deducted your Oregon state income taxes on Schedule A. The Kicker partially reverses that deduction by returning some of those taxes. Under the IRS tax benefit rule, the returned amount may be federally taxable.

The Oregon Department of Revenue will issue a Form 1099-G for the Kicker in the year it’s received (or the year you file your 2025 return, if later). This form reports the Kicker amount to both you and the IRS.

The 1099-G does not automatically mean you owe federal taxes on the amount. You must work through the IRS tax benefit worksheet to determine how much (if any) is actually taxable. See our detailed guide on this: Is a Government Relief Check Taxable? The Complete IRS Guide.

Oregon state taxes: The Kicker is explicitly not taxable for Oregon state income tax purposes. If you do end up including Kicker income in your federal adjusted gross income (because you itemized), you can subtract it on your Oregon return using the Oregon subtraction for “Oregon income tax refund.”

The 2025 SALT change: The One Big Beautiful Bill Act raised the federal SALT deduction cap from $10,000 to $40,000 for 2025. This means some Oregonians who previously couldn’t fully deduct their state taxes (because $10,000 cap cut them off) may now be able to deduct a larger amount — which could affect the taxability of the 2025 Kicker for some itemizers. This is one more reason to consult a tax professional if you itemize and have a large Kicker credit.

The School Fund Donation Option

Since Ballot Measure 86 in 2000, Oregon taxpayers have had the option to donate their Kicker to the Oregon State School Fund for K-12 public education.

This is entirely voluntary. To donate:

• Check the donation box on your Oregon income tax return when filing
• You must donate the entire Kicker amount — partial donations are not permitted
• Once you file and the deadline passes, the election to donate cannot be reversed

If you donate your Kicker:

• You do not receive the refund
• Oregon will report the amount on a Form 1099-G (for federal itemized deduction purposes, your donation to the School Fund may be treated as a charitable contribution — consult a tax professional)
• Oregon explicitly states that a donated Kicker is still included in the 1099-G, because it is still considered distributed

You can also donate your Kicker (or any portion of your tax refund) to other approved charities through Schedule OR-DONATE. Unlike the School Fund option (which must be 100%), charitable donation through Schedule OR-DONATE can be any amount.

The Kicker and Oregon’s Budget Debate: Why It Remains Controversial

The Kicker is beloved by taxpayers and a perennial headache for budget planners. Understanding the debate illuminates why this unique law has survived for over 40 years.

The Case For the Kicker

Proponents argue that the Kicker enforces fiscal discipline on government. Without it, excess revenue would simply be absorbed into the budget — funding programs or employee costs that might prove difficult to cut when revenues fall. The Kicker, in this view, forces governments to live within their means and return windfalls to the people who generated them.

It also provides a built-in inflation adjustment. When the economy is strong and tax revenues surge, so do Kicker payments — putting money back in households’ pockets during the same periods when inflation often runs hot.

And politically, it reflects a genuine preference expressed by Oregon voters: they approved it in 1980 by statute, then enshrined it in the Constitution in 2000 with 62% approval. That’s a clear democratic mandate.

The Case Against the Kicker

Critics make a compelling structural argument: the Kicker makes Oregon’s budget unnecessarily fragile.

In a recession, Oregon’s income tax revenue falls sharply — income taxes are highly cyclical. If the state had retained the surplus from boom years, it would have a cushion. Instead, the Kicker returns those surpluses, leaving the state with smaller reserves. When the recession hits, Oregon has to cut schools, public safety, and healthcare rather than drawing on saved surpluses.

The 2003 recession demonstrated this painfully. After several Kicker payouts in the late 1990s boom years, Oregon faced brutal budget cuts — including shortened school years and police layoffs — because there was no buffer. Critics noted that the Kicker had returned money that could have prevented those cuts.

The 2007 compromise that redirected the corporate Kicker to a rainy day fund addressed part of this concern, but critics argue the personal income portion — by far the larger amount — remains a structural vulnerability.

The Current Political Landscape

As of 2026, efforts to modify the personal income Kicker continue. Some proposals would allow a portion to be retained in a rainy day fund during particularly large surpluses. Others would phase in a savings mechanism for amounts exceeding a certain threshold.

None of these have yet cleared the high constitutional bar for suspension. For now, the Kicker remains fully intact — and will continue to fire whenever Oregon’s tax revenues outpace projections.

Estate and Deceased Taxpayer Kickers

If a taxpayer dies during a Kicker year, can their estate still claim the credit?

Yes, under specific conditions:

• If the deceased taxpayer filed a 2024 Oregon return with tax liability, a final return can be filed for the 2025 tax year (the Kicker year) to claim the credit
• The return is filed by the estate executor or personal representative
• The Kicker credit goes to the estate and is distributed according to the estate

This is an often-missed detail during estate settlement. If you’re administering an estate where the deceased was an Oregon taxpayer, check whether a 2025 Kicker credit is available before closing the estate.

Married Couples: Filing Status Changes and the Kicker

The most complicated Kicker scenarios involve married couples where filing status changed between 2024 and 2025:

Scenario: Married couple who filed jointly in 2024, still married in 2025 Simple: The joint 2025 return claims the Kicker based on the 2024 joint tax liability.

Scenario: Previously single in 2024, now married and filing jointly in 2025 Both spouses calculate their individual Kicker amounts based on their separate 2024 returns, then combine them on the joint 2025 return.

Scenario: Filed jointly in 2024, now divorced or legally separated in 2025 Each spouse’s share of the Kicker is calculated based on their share of 2024 joint income. The Oregon DOR provides worksheets for this calculation. If the divorced couple can’t agree on the allocation, either can request the DOR to split the refund based on the income ratio.

Scenario: Spouse died in 2025 The surviving spouse can generally claim the full joint Kicker on a joint return for the year of death.

The Oregon DOR publication “Oregon Surplus (Kicker)” FAQ on oregon.gov addresses each scenario in detail.

Common Mistakes Oregonians Make with the Kicker

After decades of Kicker payouts, certain errors recur consistently:

Mistake 1: Not filing because you “don’t have to.” If you had Oregon tax liability in 2024 but don’t have a 2025 Oregon filing requirement (perhaps you retired or moved), you still must file a 2025 Oregon return to claim your Kicker. “I didn’t have to file” does not equal “the Kicker was not owed to me.”

Mistake 2: Using the wrong base year. The Kicker is always calculated on the prior year’s tax liability. The 2025 Kicker uses 2024 liability. Taxpayers sometimes mistakenly try to use their 2025 liability.

Mistake 3: Including withholding in the calculation. Your Kicker base is your tax liability before credits — not the amount you paid or the amount withheld from your paycheck. These numbers are often different. Your liability is what you owed; withholding is what was prepaid. Use Line 31 (or the equivalent) on your 2024 OR-40.

Mistake 4: Expecting a separate check. The Kicker arrives as a credit on your Oregon return. It increases your refund or reduces what you owe. It is not a separate mailing.

Mistake 5: Missing the donation deadline. If you want to donate your Kicker to the Oregon State School Fund, you must elect this on your return before the filing deadline. Amended returns that try to reverse a donation or add one are typically not accepted after the deadline.

Mistake 6: Ignoring the federal 1099-G. Even if your Kicker is not federally taxable (because you took the standard deduction), you may receive a Form 1099-G. Handle it correctly on your federal return — don’t just ignore it. See our companion article: Is a Government Relief Check Taxable? The Complete IRS Guide.

How the Kicker Compares to Other State Refund Programs

Oregon’s Kicker is unique in being constitutional, automatic, and based on a revenue surplus formula. But other states have their own surplus-return mechanisms, and it’s worth understanding how they compare.

Colorado’s TABOR (Taxpayer’s Bill of Rights): Like Oregon’s Kicker, TABOR is constitutionally mandated. It limits government spending growth and requires excess revenues to be refunded. TABOR has been subject to more political pressure than Oregon’s Kicker, with temporary “de-Brucing” measures allowing cities and the state to retain some funds. The OneShekel article on US inflation refund checks covers Colorado’s program in detail.

Massachusetts Chapter 62F: Massachusetts has a statutory “62F” law that requires excess income tax revenues to be refunded proportionally to taxpayers. It triggered in 2022 for the first time in 20 years, resulting in an approximately 14% credit on 2021 taxes. Unlike Oregon’s Kicker, 62F is not in the state constitution and could be changed by the legislature.

Alaska Permanent Fund Dividend: Alaska’s annual Permanent Fund Dividend is funded by oil revenues, not excess income taxes. Every Alaska resident receives an equal payment regardless of income or tax history. It is structurally very different from Oregon’s income-proportional Kicker.

The structural difference: Oregon’s Kicker is proportional to tax paid — higher-income taxpayers receive larger absolute dollar amounts because they paid more in taxes. Critics argue this means the Kicker disproportionately benefits the wealthy (the top 1% receive a larger share than their population share). Proponents note that it’s proportionally equal — everyone gets the same percentage of what they paid, which is the definition of fairness in a tax refund context.

What to Expect in Future Kicker Years

Will there be a Kicker in 2027 (filed in 2028)?

There’s no way to know in advance — it depends on whether Oregon’s revenue exceeds its forecast by more than 2% in the 2025-2027 biennium. The forecast for that biennium will be issued by the Oregon OEA in early 2025.

Oregon’s economy is heavily driven by income tax from high-earners in the tech, healthcare, and professional services sectors — sectors that are more volatile than the broader economy. When the stock market surges, Oregon’s tax revenues tend to surge with it (capital gains are taxable as ordinary income in Oregon). When tech or financial markets correct sharply, revenues can miss forecasts just as significantly.

Historically, the Kicker has triggered in roughly half of biennial cycles. It is a reliable long-term feature of Oregon’s fiscal landscape, but not a guaranteed annual occurrence.

To stay informed:

• Monitor the OEA’s quarterly economic forecast reports at oregon.gov/das/oea
• The OEA announces whether the Kicker has been triggered on approximately November 1 of odd years
• Oregon Department of Revenue updates its Kicker calculator and guidance at oregon.gov/dor

Resources and Tools

• Oregon Kicker FAQ: oregon.gov/dor (search “kicker”)
• What’s My Kicker? Calculator: revenueonline.dor.oregon.gov
• Oregon DOR Phone: 503-378-4988
• Oregon e-file: Oregon accepts returns filed through most major tax software programs; e-filing is strongly recommended for fastest refunds
• Free filing options: Many Oregon taxpayers can file for free through the IRS Free File program or Oregon’s OregonFree Fillable Forms

FAQ: Everything Else You Need to Know

Q: I moved out of Oregon in 2025. Do I still get the Kicker?

A: Yes, if you filed a 2024 Oregon return with tax liability, you’re entitled to the Kicker. You must file a 2025 Oregon return (even as a non-resident, zero-income return) to claim it.

Q: I’m a part-year resident. How does the Kicker affect me?

A: If you were only an Oregon resident for part of 2024, your Oregon tax liability for that partial year is the base for your Kicker. File a part-year resident return (Form OR-40-P) for 2025 to claim it.

Q: Can the IRS take my Oregon Kicker for back taxes I owe them?

A: Your Oregon Kicker cannot be directly seized by the IRS. However, Oregon can use your Kicker to offset Oregon state debts, including Oregon income taxes owed, child support, court fines, and school loans.

Q: My Kicker is only $80. Is it worth filing a return just to claim it?

A: That depends on your situation. Filing is free through many services. If you have no Oregon income in 2025 and no other reason to file, the cost-benefit depends on whether $80 justifies the time. For most people, e-filing a simple return takes less than 30 minutes and is worth it.

Q: Can I donate just part of my Kicker to the School Fund?

A: No — the School Fund donation must be the entire Kicker amount. However, you can donate any portion of your total Oregon refund (including any amount beyond just the Kicker) to approved charities through Schedule OR-DONATE.

Q: Is the Oregon Kicker real? I’ve seen social media posts calling it a scam.

A: The Oregon Kicker is completely real, legally mandated by the Oregon Constitution, and administered by the Oregon Department of Revenue. No application or action is required beyond filing your tax returns. You will never be asked for money to “unlock” your Kicker — that would be a scam. Legitimate information is only found at oregon.gov/dor.

The Bottom Line

Oregon’s Kicker is one of the most remarkable fiscal instruments in American public finance. It is constitutionally guaranteed, automatically calculated, and requires no application. Every Oregonian with Oregon tax liability simply files their return and receives what the math says they’re owed.

It rewards working, contributing members of Oregon society. It is proportional, transparent, and predictable in its formula even if the exact amount varies. And it has returned billions of dollars to Oregon households over four decades.

If you’re an Oregon taxpayer, the only things you need to do are:

1. File your 2024 Oregon return (if you haven’t already)
2. File your 2025 Oregon return by April 15, 2026
3. Claim the Kicker credit at 9.863% of your 2024 Oregon tax liability
4. Receive your refund — increased by the Kicker — within about two weeks of e-filing

It really is that simple.

This article is for informational purposes only. Tax laws change. Always verify current rules with the Oregon Department of Revenue at oregon.gov/dor or a qualified tax professional.

Related Reading:

• Complete Guide to Inflation Refund Checks in the USA (2026)
• Is a Government Relief Check Taxable? The Complete IRS Guide
• Didn’t Get Your Government Check? The Complete Action Guide