Oregon Form OR-40-N is the state income tax return nonresidents use to report Oregon-source income to the Oregon Department of Revenue. To complete it, finish your federal return first, then work through the form’s two-column layout: Column F captures your full federal income, Column S captures only the portion tied to Oregon, and the ratio between them determines how much of your deductions and credits apply against Oregon tax. The 2025 return is due April 15, 2026.
Who Has to File
You file OR-40-N if you were not an Oregon resident during the tax year and your gross income from Oregon sources exceeded the standard deduction for your filing status. For 2025, those thresholds are $2,835 for single and married-filing-separately filers, $4,560 for head of household, and $5,670 for married filing jointly or qualifying surviving spouse.1Oregon Department of Revenue. 2025 Publication OR-17 Oregon Individual Income Tax Guide
Oregon-source income includes wages for work physically performed in the state, income from a business or profession carried on in Oregon, gains from selling Oregon real estate or tangible property located there, rental income from Oregon property, and Oregon State Lottery prizes.2Oregon Revised Statutes. Oregon Code 316.127 – Income of Nonresident From Oregon Sources
You count as a nonresident if you live in another state and either keep no Oregon home or, if you do keep one, spent no more than 200 days in Oregon during the year. Someone who keeps an Oregon dwelling and exceeds 200 days can be treated as a statutory resident and would file Form OR-40 or OR-40-P instead. A narrower rule works the other way: if you are domiciled in Oregon but kept a permanent home elsewhere for the entire year, maintained no Oregon home at any point, and spent fewer than 31 days in Oregon, you file OR-40-N.3Oregon Department of Revenue. What Form Do I Use?
What to Have in Front of You
You cannot complete OR-40-N without a finished federal return. The form pulls amounts directly from your Form 1040 or 1040-SR, so complete the federal return first.4Oregon Department of Revenue. Oregon Form OR-40-N Oregon Individual Income Tax Return for Nonresidents Then pull together:
- A complete copy of your 2025 federal Form 1040 or 1040-SR with all schedules.
- Every W-2 showing Oregon wages or Oregon tax withheld.
- Any 1099s tied to Oregon-source income, including rental income, business distributions, capital gains from Oregon property sales, or lottery winnings.
- Social Security numbers or ITINs for you, your spouse if filing jointly, and any dependents.
- The current part-year and nonresident tax rate charts from the Department of Revenue, or the instructions booklet that comes with the form.5Oregon Department of Revenue. Part-Year and Nonresident Tax Rate Charts
Your filing status on OR-40-N has to match the one on your federal return. The five options are single, married filing jointly, married filing separately, head of household, and qualifying surviving spouse.4Oregon Department of Revenue. Oregon Form OR-40-N Oregon Individual Income Tax Return for Nonresidents
Filling Out the Two Income Columns
Lines 7 through 29 run in two columns. Column F (Federal) carries the full amounts from your federal return. Column S (State) carries only the portion of each income type that comes from Oregon sources.6Oregon Department of Revenue. 2025 Oregon Income Tax Form OR-40-N and Form OR-40-P Instructions Oregon only taxes you on what lands in Column S, so sorting your income correctly between the columns is the central task of the whole return.
For the F lines, transfer the corresponding amounts from your federal Form 1040 or 1040-SR: wages on line 1z, then interest, dividends, business income, capital gains, retirement distributions, and other categories through line 11a, plus Schedule 1 adjustments.
For the S lines, enter only amounts tied to Oregon. If you earned $80,000 total in wages but only $20,000 came from work performed in Oregon, line 7F shows $80,000 and line 7S shows $20,000. Interest and dividends from accounts with no Oregon connection go in Column F only, with a zero in Column S. Rental income from Oregon property goes in both columns at the same amount. When a line is ambiguous, the instructions booklet walks through each row and ORS 316.127 defines what counts as Oregon-sourced.
Oregon Percentage, Deductions, and Tax
Working the columns down to line 34 gives you adjusted gross income on both the federal (34F) and Oregon (34S) sides. Line 35 is the Oregon percentage, usually calculated by dividing 34S by 34F and rounding to three decimal places.7Oregon Department of Revenue. 2024 Publication OR-40-NP Oregon Income Tax Part-Year Resident and Nonresident Instructions An Oregon figure of $20,000 against a federal AGI of $100,000 produces an Oregon percentage of 20.000%. The percentage can never exceed 100%, and special rules apply when either figure is negative or Column S exceeds Column F; the instructions cover those cases.
The Oregon percentage controls how much of your deductions and credits apply. At 20%, you get 20% of the standard deduction, 20% of itemized deductions where applicable, and the same proration on many state credits. Apply the prorated deduction to arrive at Oregon taxable income, then run that figure through the graduated rate table.
2025 Tax Rate Brackets
For single and married-filing-separately filers, the 2025 rates are:
- 4.75% on taxable income up to $4,400
- 6.75% on income from $4,401 to $11,100
- 8.75% on income from $11,101 to $125,000
- 9.9% on income over $125,000
For joint filers, heads of household, and qualifying surviving spouses, the bracket thresholds are roughly doubled, at $8,800, $22,200, and $250,000.5Oregon Department of Revenue. Part-Year and Nonresident Tax Rate Charts
Schedule OR-ASC-NP for Additions, Subtractions, and Credits
If your Oregon tax picture includes items the main form doesn’t capture, attach Schedule OR-ASC-NP. The schedule uses code numbers to report income Oregon treats differently from the federal government, including additions in Section B (codes 100–199), subtractions in Section C such as interest on U.S. savings bonds (code 315) or an Oregon tax refund included in federal income (code 325), and various Oregon-specific credits.
Taxpayers 66 or older with federal AGI under $200,000 joint or $100,000 single or married filing separately may claim an Oregon medical subtraction for qualifying medical and dental expenses under code 351.8Oregon Department of Revenue. Schedule OR-ASC and OR-ASC-NP Instructions The full code list is in the Schedule OR-ASC-NP instructions, and missing an available subtraction is one of the easier ways to overpay.
How to File
You can file electronically or on paper. E-filing is faster and catches arithmetic errors before you send the return. Oregon participates in the IRS Federal/State E-file program, so you can submit federal and Oregon returns together through approved tax software, including TurboTax, H&R Block, TaxAct, TaxSlayer, and FreeTaxUSA.9Oregon Department of Revenue. Electronic Filing Payments can also go through Oregon Revenue Online.
If you mail a paper return, the address depends on whether you owe money:
- With payment: Oregon Department of Revenue, PO Box 14555, Salem, OR 97309-0940
- Refund or zero balance: Oregon Department of Revenue, PO Box 14700, Salem, OR 97309-0930
Include your check or money order in the same envelope as the return. No separate payment voucher is needed when they travel together.10Oregon Department of Revenue. Mailing Addresses For payments made separately from your return, use Form OR-40-V or pay through Revenue Online.
About 95% of e-filed returns produce a refund within two weeks; the 5% that go to manual review can take up to 20 weeks.11Oregon Department of Revenue. Where Is My Refund? Paper returns take longer because processing doesn’t begin until late March, with the first paper-filed refunds going out in early April.12Oregon Department of Revenue. Paper Return Processing Delays in 2026 The Department of Revenue’s “Where’s My Refund?” tool tracks status online.
Deadline and Extension
The 2025 return is due April 15, 2026.13Oregon Department of Revenue. Final Countdown Tax Filing Deadline Is Wednesday Oregon honors the federal six-month extension automatically. File federal Form 4868 with the IRS and Oregon gives you until October 15, 2026, with no separate state extension form required.14Oregon Department of Revenue. Instructions for Automatic Extension of Time to File Oregon Individual Income Tax Return When you eventually file OR-40-N, check the “Extension filed” box.
An extension gives you more time to file, not more time to pay. Pay at least 90% of your Oregon liability by April 15 to avoid the late-payment penalty.14Oregon Department of Revenue. Instructions for Automatic Extension of Time to File Oregon Individual Income Tax Return You can send an extension payment through Revenue Online or mail Form OR-40-V with the “Original return or extension” box checked.15Oregon Department of Revenue. Apply for an Extension
Separately, if your Oregon tax after withholding and credits will be $1,000 or more, you likely need quarterly estimated payments. Oregon waives the underpayment penalty if your withholding and estimated payments reach 90% of current-year tax, 100% of prior-year tax, or 90% of tax on current-year annualized income.16Oregon Department of Revenue. Oregon Estimated Income Tax Instructions Nonresidents with Oregon rental income or other untaxed Oregon-source income are the ones most likely to trip this wire.
Penalties and Interest for Late Returns
Oregon’s delinquency penalty for failing to file or pay by the due date is 5% of the unpaid tax, charged once rather than monthly. If the return is still unfiled more than three months after the deadline, a separate 20% failure-to-file penalty is added. If the Department of Revenue then demands you file within 30 days and you ignore the demand, another 25% penalty applies. Combined penalties can reach 100% of the tax owed.17Oregon Revised Statutes. Oregon Code 314.400 – Penalty for Failure to File Report or Return or to Pay Tax When Due
Interest runs separately. The annual rate for periods beginning on or after January 1, 2026 is 8%, with an additional 4% per year added on tax that remains unpaid more than 60 days after formal assessment.18Oregon Department of Revenue. Penalties and Interest for Personal Income Tax Interest accrues on the tax, not on the penalties.
Remote Workers and Military Spouses
Living outside Oregon and working remotely for an Oregon employer without physically entering the state generally doesn’t create Oregon-source income. Oregon taxes nonresidents only on income from services actually performed in Oregon, so wages earned from your home in Washington or California for an Oregon company aren’t taxed by Oregon on that basis alone. Wages tied to days you spend working in an Oregon office are a different matter and belong in Column S.
Under the federal Military Spouses Residency Relief Act, Oregon cannot tax a military spouse’s Oregon wages if the spouse moved to Oregon solely to be with a service member stationed there and both are domiciled outside Oregon.19Oregon Department of Revenue. Military Personnel The spouse may also elect to be treated as a resident of the state where the service member is domiciled or permanently stationed under the Servicemembers Civil Relief Act. The exemption does not apply if the spouse is also in the military.