Oregon income tax filing requirements depend on whether a taxpayer is a full-year resident, part-year resident, or nonresident. Part-year residents and nonresidents must determine which income is subject to Oregon tax based on their residency status and Oregon-source income.
Residency Categories
Full-Year Resident
- File Form OR-40.
- Report income from all sources, including income earned outside Oregon, subject to applicable Oregon tax rules.
Part-year residents You were a part-year resident if
- You were an Oregon resident for part of the year and
- A nonresident for the rest of the year.
Oregon taxes all of your income for
- The part of the year you were an Oregon resident
- Any income earned in Oregon or received from Oregon sources for the part of the year you were a nonresident
Use Form OR-40-P if any ONE of the following is true:
- You’re a part-year resident and you're not filing a joint return.
- Both you and your spouse are part-year residents, or one of you is a full-year Oregon resident and the other is a part-year resident, if you're filing a joint return.
- You (and your spouse, if you're filing a joint return) qualified as an Oregon resident living abroad for part of the year.
Nonresident: You’re a nonresident if both of the following are true for you:
- Your domicile is outside of Oregon: that is, the place that you think of as your permanent home, where the center of your financial, social, and family life is, and where you intend to return when you’re away, is not Oregon; and
- If you maintain a permanent home in Oregon, you didn’t spend more than 200 days in this state during 2025 (or you can show that you were in Oregon only for a temporary purpose).
- Oregon taxes only income you earned
- In Oregon and
- Received from Oregon sources.
Use Form OR-40-N if any one of the following is true:
- You are a nonresident; or
- You are a special-case Oregon resident (see “Residency”); or
- You and your spouse are filing jointly and one (or both) of you is a nonresident; or
- You meet the military personnel nonresident requirements (see “Military personnel filing information”); or
- You qualified as an Oregon resident living in a foreign country for the entire year (see “Residency”).
Important. A recreational vehicle (RV) isn’t considered a permanent home outside of Oregon.
Special-case Oregon resident. You may be taxed as a nonresident, even if your domicile is in Oregon, if all the following are true for you:
- You don’t maintain a permanent home in Oregon.
- You maintain a permanent home outside Oregon.
- You spent a total of 30 days or less in Oregon during 2025.
Oregon-Source Income
For part-year residents and nonresidents, Oregon-source income generally includes income that has a sufficient connection to Oregon under Oregon's income-sourcing rules.
Examples include:
- Wages for services performed in Oregon.
- Income from a trade or business conducted in Oregon.
- Rental income from Oregon property.
- Income from Oregon real property.
- Other income that Oregon law specifically treats as Oregon-source income.
Income Allocation
Part-year residents must distinguish between income attributable to their Oregon-resident period and income attributable to their nonresident period.
- Income received while an Oregon resident is generally included in Oregon taxable income.
- Income received while a nonresident is generally included when it is Oregon-source income.
- Non-Oregon-source income received while a taxpayer is a nonresident is generally not subject to Oregon individual income tax.
The applicable Oregon allocation rules should be used when income relates to both the resident and nonresident periods.
Source:
Publication OR-17 (2025)
Disclaimer: Always verify details with the most current Federal or State Department of Revenue Forms and Instructions. For complex situations, consult a CPA or tax attorney.