How did Oregon get the kicker?

The 1979 Oregon Legislative Assembly passed the "Two percent kicker" law as a way to control state spending. The law requires the state to compare the revenue forecast for each two-year biennium to the amount actually received and return any surplus to taxpayers.

Voters approved a ballot measure adding the kicker to the Oregon Constitution in 2000 and provided taxpayers with the option to donate their kicker to the State School Fund to help fund K-12 schools in Oregon.

When do we have a kicker?

After the biennium ends, if actual revenue collected exceeds the forecast amount by more than 2 percent, the revenue surplus is refunded to taxpayers as a tax credit claimed on their personal income tax returns in the even-numbered year of the next biennium.

On November 1, 2025 the Oregon Office of Economic Analysis (OEA) certified that revenue collected for 2023-2025 biennium (July 1, 2023 through June 30, 2025) had exceeded the OEA forecast by $1.41 billion, the fourth largest surplus revenue amount in state history.

OEA further certified 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.

The kicker is returned to taxpayers as a tax credit.

The kicker is returned to taxpayers as a refundable tax credit, either reducing the amount of tax they owe or increasing their refund.

While there was a time when the kicker was returned to taxpayers in the form of a check, the 2011 Legislature changed the method of payment back to a tax credit claimed on returns filed in the even-numbered year of the biennium.

How much will my kicker be?

Taxpayers can use the Department of Revenue’s “What’s My Kicker?” calculator to determine the amount of their kicker.

Taxpayers can claim a kicker credit equal to 9.863 percent of their Oregon personal income tax liability for tax year 2024. A taxpayer with a $5,000 Oregon personal income tax liability for tax year 2024 would be able to claim a kicker credit on their tax year 2025 return of $493 ($5,000 x 0.09863). Only Oregon personal income tax liability for tax year 2024 will count toward the kicker. Taxes paid in previous years and federal income taxes are not part of the kicker calculation.

Where can I find more information about the kicker?

You can find more information about the kicker and a link to the “What’s My Kicker?” calculator on the Oregon Department of Revenue website, including a list of frequently asked questions, and historic data listing the years of past kickers and their amounts.