Oregon Part-Year Residents and Nonresidents: Filing Requirements and Tax Calculations
Part-year residents and nonresidents of Oregon have specific tax filing obligations. These individuals must report income earned in Oregon during the time they were present in the state or received income from Oregon sources while residing outside the state.
Filing Forms
- Form OR-40-N: Used by nonresidents who earned income from Oregon sources.
- Form OR-40-P: Used by part-year residents who lived in Oregon for only part of the year.
Both forms require you to calculate your Oregon income tax based on your time in the state. You must determine your "Oregon percentage" — the proportion of the year you were a resident or had Oregon-sourced income — and apply it to your total tax liability.
Tax Calculation for Part-Year Filers
- Use the tax tables or tax rate chart from your 2025 return instructions to compute tax on annualized income.
- Multiply any pro-rated credits by your Oregon percentage.
- For capital gains or losses, add gains received and losses incurred during your time as an Oregon resident. Losses are limited to $3,000 ($1,500 if married filing separately).
Additional Resources
For detailed guidance, refer to Publication OR-17, which serves as a comprehensive guide to Oregon personal income taxes. It expands on form instructions and explains state tax laws to ensure you pay only the tax you owe.
Part-year filers must enter their Oregon percentage (from Form OR-40-P, line 35) on Schedule OR-PTE-FY, OR-PTE-NR, or OR-PTE-PY for lines 11a and 14b. This percentage is applied to nonqualifying, qualifying, and total income tax calculations.
If your filing or marital status hasn’t changed from the previous year, you may use a simplified method: multiply your 2024 total Oregon personal income tax liability by 0.09863, or use Part A of the worksheet provided in the instructions.
Source:
Form OR-40-N and OR-40-P Instructions
Publication OR-17: Individual Income Tax Guide
Schedule OR-PTE Instructions
Disclaimer: Always verify information with official Federal or State Department of Revenue Forms and Instructions.