How to Complete and File Oregon Form OR-40-P: Part-Year Resident Filing

If you moved into or out of Oregon during the tax year, Oregon Form OR-40-P is the personal income tax return you file for that transition year. The form’s job is to separate the income Oregon can tax from the income it can’t, using a two-column layout that puts your full federal income beside the Oregon-only portion and then applies a percentage to your tax.

Who Files This Form

You file OR-40-P if you stopped being a resident of another state and became an Oregon resident during the year, or stopped being an Oregon resident and became a resident of another state. The timing of the move doesn’t matter. Whether you crossed the border on January 2 or December 30, this is the return for that year.¹

A few joint-filing situations also point to OR-40-P: both spouses are part-year residents, or one spouse is a full-year Oregon resident and the other is a part-year resident. Oregon also treats a resident who lives in a foreign country for part of the year as a part-year resident for filing purposes.¹

Full-year Oregon residents file Form OR-40. Nonresidents file Form OR-40-N. If your permanent home changed to or from Oregon during the year, OR-40-P is yours.

What to Have Ready Before You Start

Pull these together first:

Your completed federal Form 1040 or 1040-SR. Oregon’s calculation starts from federal adjusted gross income on line 11, so the federal return has to be done before you touch OR-40-P.²
Social Security numbers or ITINs for you, your spouse if filing jointly, and every dependent.
All W-2s and 1099s. If a W-2 doesn’t break out Oregon wages separately, the instructions include a formula to calculate them.
The exact date you established or gave up Oregon residency. That date decides which income lands in the Oregon column.
Records of any Oregon-source income earned while you lived elsewhere.

How the Two-Column Layout Works

OR-40-P uses a Federal column (F) and an Oregon column (S) side by side. The Federal column captures every dollar from your federal return. The Oregon column captures only the income Oregon is entitled to tax.³

Lines 7F through 29F mirror your federal return with no Oregon-specific changes. Line 29F must match your federal AGI.

The Oregon column is where the work happens. As a part-year resident, you report income from all sources earned or received while you were an Oregon resident, plus income from Oregon sources earned while you were a nonresident. If you moved to Oregon on July 1, the Oregon column includes everything you earned from July 1 onward, plus any Oregon-source income (such as rent from an Oregon property) from January through June.

What Counts as Oregon-Source Income

Most of the income you earned while living outside Oregon isn’t the state’s business. But certain income tied to Oregon activities still belongs in the Oregon column even for months you weren’t a resident:

Wages for work performed in Oregon. If your W-2 doesn’t break out the Oregon portion, use the formula in the instructions.
Business income from an Oregon business, partnership, LLC, or S corporation, or from a business serving Oregon customers.
Gains from selling real estate or other property located in Oregon.
Rents and royalties from Oregon property.
Oregon unemployment benefits tied to an Oregon job.
Severance, sick pay, and vacation pay earned from an Oregon job.
Oregon State Lottery winnings.
Oregon farm income.
Income from estates and trusts in Oregon or holding Oregon property or businesses.

The property side is where people get tripped up. If you left Oregon in March but sold your Portland rental house in September, the gain belongs in the Oregon column even though you were a nonresident at the time of sale.³

Calculating the Oregon Percentage

Once both columns are filled in, line 35 asks for your Oregon percentage. This is the share of your total tax that Oregon collects. Divide line 34S by line 34F, round to three decimal places, and convert to a percentage. The result cannot exceed 100 percent.³

A few edge cases:

If the Oregon amount is larger than the Federal amount, the percentage is 100 percent.
If the Oregon amount is positive but the Federal amount is zero or negative, the percentage is 100 percent.
If both amounts are negative, treat both as positive and compare. If the Oregon number is smaller, the percentage is 100 percent. If the Federal number is smaller, divide the Federal number by the Oregon number.

Your final Oregon tax on line 45 is the tax on your total taxable income multiplied by this percentage. If the tax on total income would be $8,000 and your Oregon percentage is 60 percent, you owe Oregon $4,800 before credits.

Additions, Subtractions, and Credits

After the two columns are filled, Oregon-specific additions and subtractions are reported on Schedule OR-ASC-NP and feed into lines 30 and 33. Additions cover items Oregon taxes that the federal return doesn’t. Subtractions cover income Oregon excludes, including Social Security and Tier 1 Railroad Retirement Board benefits, which come off on line 32.²

Several credits are available to part-year residents, with proration built in:

Oregon Kids Credit. Part-year residents qualify, but qualifying income is calculated differently from a full-year resident’s, and the credit is prorated by your Oregon percentage.⁴
Oregon earned income credit. Calculate the credit, then multiply by your Oregon percentage.
Working Family Household and Dependent Care credit, if you have qualifying dependent care expenses.

The OR-40-P instructions include a worksheet for each of these.

Deadline, Extension, and How to File

The 2025 return is due April 15, 2026.⁵ If you file for a federal extension using IRS Form 4868, Oregon automatically extends your filing deadline to October 15, 2026. No separate Oregon extension form is needed.

An extension gives you more time to file, not more time to pay. If you owe Oregon tax, pay by April 15 to avoid penalties. Use Form OR-40-V marked “Extension Payment” through Revenue Online or by mail to PO Box 14555, Salem, OR 97309-0940. If you don’t have a federal extension and expect to owe Oregon, request an Oregon extension before the April deadline.

Electronic filing is faster and confirms receipt immediately. You can e-file through a tax preparer who is an authorized IRS e-file provider or through approved software including TurboTax, H&R Block, TaxAct, TaxSlayer, and FreeTaxUSA. Some providers offer free filing for eligible taxpayers.⁶

One option that doesn’t work here: Direct File Oregon, the state’s free filing tool through Revenue Online, currently handles only Form OR-40 for full-year residents, not OR-40-P.

If you file on paper, the mailing address depends on whether you owe:

Returns with a payment: Oregon Department of Revenue, PO Box 14555, Salem, OR 97309-0940.
Refund or zero-balance returns: Oregon Department of Revenue, PO Box 14700, Salem, OR 97309-0930.⁷

Oregon-approved tax software prints a 2-D barcode on the front page of paper returns, which speeds processing compared to a return without one.

Penalties and Interest if You Miss the Deadline

Oregon stacks penalties, so a missed deadline gets expensive quickly.

A 5 percent late-payment penalty applies to any Oregon tax not paid by the original due date, even if you filed an extension.⁸ If you don’t file at all and more than three months pass after the due date, the department adds a 20 percent failure-to-file penalty on top of the 5 percent. If you still haven’t filed after the department issues a formal notice and demand, a further 25 percent penalty can be assessed on the deficiency.⁹

Interest runs separately at 8 percent per year for periods beginning on or after January 1, 2026. An additional 4 percent per year kicks in on tax that remains unpaid more than 60 days after assessment. Interest is charged on the tax owed, not on the penalties themselves.⁸

A Note for Military Filers

Active-duty rules can push service members and their spouses onto a different form. Oregon treats an active-duty service member as a nonresident if the DFAS payroll address is outside Oregon, regardless of actual domicile. Oregon residents stationed outside the state may qualify as nonresidents if they had no permanent home in Oregon during the tax year, maintained a permanent address outside Oregon the entire year, and spent fewer than 31 days in the state.

A military spouse may elect to use the same state of residence as the service member. If one spouse is an Oregon resident and the other is not, a nonresident joint return on Form OR-40-N is one option. National Guard and Reserve members stationed outside Oregon for 21 days or longer can subtract the military pay earned during that active-duty period. Residents stationed inside Oregon can deduct up to $6,000 per active-duty military spouse for remaining taxable military income after other subtractions.

1
Oregon Department of Revenue. What Form Do I Use?
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Oregon Department of Revenue. 2025 Form OR-40-P – Oregon Individual Income Tax Return for Part-Year Residents
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Oregon Department of Revenue. 2025 Form OR-40-N and Form OR-40-P Instructions
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Oregon Department of Revenue. Tax Benefits for Families
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Oregon Department of Revenue. Final Countdown – Tax Filing Deadline Is Wednesday
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Oregon Department of Revenue. Electronic Filing
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Oregon Department of Revenue. Mailing Addresses
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Oregon Department of Revenue. Penalties and Interest for Personal Income Tax
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Oregon Public Law. Oregon Code ORS 314.400 – Penalty for Failure to File Report or Return or to Pay Tax