Oregon Issues 2025 Tax Refunds and $1.4 Billion Kicker

The Oregon Department of Revenue began distributing state tax refunds for the 2025 tax year on February 19, 2026. This year's distribution includes a revenue surplus "kicker" credit totaling approximately $1.41 billion. The credit is available to taxpayers who filed returns for both 2024 and 2025, and is calculated as a percentage of the individual's 2024 personal income tax liability.

As of February 17, the department had processed over 500,000 electronically filed returns, with most e-filed refunds issued within two weeks. In contrast, taxpayers who filed via paper face significant delays. Processing for these returns is not expected to begin until late March, with the first refunds likely arriving in April.

The agency attributed the paper-filing delay to the Internal Revenue Service, which provided necessary tax form information late in the closing months of 2025.